ABUJA, Nigeria — AfriWallStreet has called on governments across Africa to urgently shift national economic priorities from trading and raw commodity exports to large-scale manufacturing and industrialization, warning that the continent cannot achieve prosperity by remaining a marketplace for foreign-made goods.
In an editorial statement released on Wednesday, the Africa-focused business and markets platform said Africa's long-standing model of exporting unprocessed minerals, crude oil, and agricultural produce while importing finished products has left the continent vulnerable, job-poor, and uncompetitive.
"Africa has mastered trading, but has neglected making. For decades, we have exported what we grow and what we dig, only to import what we need at ten times the price. That model is broken," AfriWallStreet stated. "If AfCFTA is to mean anything, it must be an industrial agreement, not just a trade agreement."
The Cost of Trading Economy
The call comes amid growing continental debate on how to make the African Continental Free Trade Area (AfCFTA) deliver real economic growth. Despite holding 60% of the world's arable land and vast deposits of critical minerals, Africa accounts for less than 2% of global manufacturing output.
Intra-African trade remains below 15% of total trade, compared to over 60% in Europe, largely because African economies produce similar raw commodities with little to exchange.
AfriWallStreet argued that the continent's next phase of growth must be driven by value addition, manufacturing, and regional trade. The platform noted that it is no longer sustainable for countries like Nigeria to export crude oil and import refined fuel, or for the DRC to export cobalt and import batteries.
Three Pillars for Industrial Shift
AfriWallStreet outlined three urgent actions for African governments:
1. Industrial Policy Over Import Policy: Governments should replace blanket import waivers and port revenue targets with deliberate incentives for local factories, including tax holidays for manufacturers, affordable industrial power, and access to long-term credit.
2. Build Regional Production Hubs: Rather than 54 small national markets, Africa must turn continental commitments, including AfCFTA, into functioning regional markets and production hubs. This means special economic zones that cut across borders in automotive, pharmaceuticals, agribusiness, and electronics manufacturing.
3. Scale Over Survival: Small-scale, low-productivity trading activities cannot sustain competitiveness under AfCFTA. Africa needs to invest in scale production and efficiency, as demonstrated by groups like Dangote Group, which operates in 17 African countries and has stated its ambition to deepen Africa’s manufacturing base.
A Continental Opening
The platform said global disruptions - from supply chain realignments to new non-reciprocal trade openings like China's zero-tariff offer to African countries - have created a unique opening for African exporters, but only if Africa moves beyond exporting raw materials and focuses on value addition and manufacturing.
"Trading makes traders rich. Manufacturing makes nations rich. African governments must decide which future they want," the statement concluded.
AfriWallStreet called on the African Union, Afreximbank, and national ministries of industry and trade to tie future trade concessions and incentives directly to manufacturing capacity, local content, and job creation targets.