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By Merit Ibe, [email protected]
Small and medium enterprises (SMEs) and informal manufacturers across Africa remain the most vulnerable to sharp swings in commodity prices and currency fluctuations, largely because they lack access to hedging instruments and affordable financing, the Pan-African Manufacturers Association (PAMA) has warned.
In its latest market outlook, PAMA noted that global commodity performance was mixed in late September 2025, with both industrial and agricultural inputs softening due to sluggish manufacturing activity worldwide. The association said these fluctuations continue to hit smaller players hardest, especially those operating outside formal financing structures.
According to the report, many SMEs are unable to secure the credit, insurance, or forex buffers available to larger manufacturers, leaving them exposed each time markets move. PAMA stressed that without targeted interventions, such as subsidised credit windows, access to risk-management tools, and improved supply-chain integration, Africa’s small producers will remain at the mercy of global price shocks.
PAMA serves as the continental voice of manufacturers, driving Africa’s industrial transformation under Agenda 2063.
In its latest report by the Interim President, Mansur Ahmed and Interim Co-Secretary, Segun Ajayi-Kadir, industrial inputs broadly weakened, highlighting the need for aligned industrial, trade, and energy policies.
The association proffered that African governments should promote regional commodity exchanges, facilitate access to forward contracts, and integrate power-sector reforms with industrial strategies. The report also stressed that coordinated regional action will help ensure that global price moderation translates into domestic competitiveness and inclusive growth.
PAMA is optimistic that the present commodity environment offers Africa an opportunity to strengthen industrial resilience and manufacturing competitiveness amid a volatile global economy.
It urged African governments to promote regional commodity exchanges, facilitate access to forward contracts, and integrate power-sector reforms with industrial strategies.
Coordinated regional action, the report noted, is crucial to ensure that global price moderation translates into domestic competitiveness and inclusive growth. In the period under review, fuel and freight costs were easing, providing short-term relief, while some commodities remain volatile.
“Sugar prices declined, offering temporary respite for food and beverage producers, but industrial margins continue to be tested.”
To sustain growth into 2026 and beyond, PAMA emphasized smarter procurement, diversified energy solutions, deeper regional value chains, and coordinated policies to strengthen industrial competitiveness.
On intellectual property (IP) risks and counterfeiting in global trade, PAMA report cited the Organisation for Economic Co-operation and Development (OECD October, 2025 publication), that said globalisation, trade facilitation, and industrial specialisation have significantly reshaped supply chains, extending them across multiple countries and continents.
It noted that while this evolution has enhanced efficiency, economic growth, and consumer choice, it has also increased the complexity of managing and securing supply chains. In addition, the rising importance of IP embedded in global production underscores the need for international collaboration and enforcement to safeguard innovation and brands across jurisdictions.
“The intricate nature of global supply chains, however, creates vulnerabilities that contribute to intellectual property infringement.
“Counterfeit goods that infiltrate supply chain networks undermine legitimate businesses, deprive governments of revenue, and pose public health and safety risks.
“Illicit trade in counterfeit goods is also linked to organised crime and corruption, exploiting gaps in regulations and enforcement. These challenges are amplified by the increasing complexity and global nature of supply chains.”
It disclosed that studies have shown that the China continues to be the primary source of counterfeit goods, although other regions contribute significantly. Indeed, the General Trade-Related Index of Counterfeiting (GTRIC) index, which estimates the likelihood of specific countries being major sources of counterfeit exports, indicates that during 2020-21 the sources of counterfeit clothing products were numerous and spread across the world; Bangladesh, Lebanon, Syrian Arab Republic, and Türkiye were considered to be key sources of such illicit goods.
In 2021, global trade in counterfeit goods was valued at approximately USD 467 billion, or 2.3% of total global imports. “This absolute value represents an increase from 2019, when counterfeit trade was estimated at 464 billion dollars, although its relative share decreased compared to 2019 when it accounted for 2.5% of world trade.”
According to the Organisation for Economic Co-operation and Development, counterfeiting affects nearly 50 of the 96 product categories, with high-value goods such as clothing, footwear, leather goods, and electronics the top targets.
“Trade routes continue to evolve as counterfeiters use international waterways such as the Danube River to move goods and adopt “localisation” strategies to produce fakes closer to end markets.
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Free trade zones, which benefit from reduced oversight, play a pivotal role in this trend. “Localisation tactics, such as importing unassembled components or separate packaging with a view to producing or assembling counterfeit goods close to or within the destination market, complicate enforcement efforts and require new strategies for detection.”
The report also highlighted the fact that counterfeiters also exploit online platforms and modern logistics to infiltrate legitimate trade, with postal services emerging as the primary channel for distribution. “Small parcels, often classified as de minimis trade, evade scrutiny and create challenges for enforcement agencies.
This illicit trade poses serious risks to public health and safety, while the sheer scope of counterfeit goods demonstrates the scale of this global crisis.”
PAMA insists that while Africa is not a major source of counterfeit exports globally, the continent is far from insulated from the consequences of counterfeiting and weak intellectual property enforcement.
“In fact, Africa is increasingly a target market and a transit hub for counterfeit goods from pharmaceuticals and electronics to agricultural inputs and auto parts, many of which originate outside the continent.
According to data released in 2023 by the United Nations Office on Drugs and Crime (UNODC), counterfeit and substandard medicines are responsible for approximately 500,000 deaths annually in sub-Saharan Africa each year. This dramatic figure represents only the tip of the iceberg of a crisis that threatens to claim more lives if urgent measures are not taken.
The continent’s fragmented regulatory systems, weak border controls, and limited technical capacity make it vulnerable to illicit trade networks.
According to a data report by the Anti-Counterfeit Authority (ACA), Kenya alone loses a staggering KSh800 billion annually, an amount equivalent to nearly 9% of its Gross Domestic Product (GDP) due to the proliferation of counterfeit goods. This is not peculiar to Kenya alone but to all other African countries, undermining industrial growth, public revenue, and consumer safety.
“According to the Global Organised Crime Index, Nigeria and Ethiopia each record high scores (8.0) on the trade in counterfeit goods metric, placing them among the most exposed globally.”
The association decried that African innovators, designers, and small manufacturers face additional risks, as their products are often replicated and sold cheaply without legal protection.
“The lack of effective IP frameworks discourages innovation, investment, and the development of local brands.”
PAMA advised that the evolving trends in counterfeiting in the continent underscore the urgent need for stronger enforcement mechanisms and enhanced international and regional cooperation.
It viewed that counterfeiters are increasingly exploiting weaknesses in regulatory systems, limited enforcement capacity, and fragmented oversight across jurisdictions.
To address these gaps according to PAMA report, African leaders must work collectively.
PAMA called for urgent action, recommending stronger enforcement mechanisms, regional cooperation, and empowerment of specialized IP units within customs, police, and trade ministries.
It also encouraged partnerships between authorities and private sector actors, adoption of digital tools such as blockchain, QR codes, and AI-based customs inspection systems to improve traceability, and consumer awareness campaigns to curb the proliferation of counterfeit goods.
“The governments must strengthen institutional coordination and enforcement capacity creation and empowerment of specialised Intellectual Property (IP) enforcement units within customs, police, and trade ministries.
These units should be adequately resourced and trained to detect, investigate, and prosecute IP crimes effectively.
“African leaders must promote cross-border information sharing and joint operations through regional data-sharing platforms supported by the AfCFTA Secretariat and African Union Commission (AUC) to facilitate intelligence exchange on counterfeit trade routes, seizure data, and known syndicates.
“Rights holders and manufacturers remain the first line of defense against counterfeiting. PAMA encourages structured partnerships between enforcement authorities and private sector actors, including manufacturers, e-commerce platforms, and logistics companies. Such partnerships could be in the form of: real-time reporting and verification channels for counterfeit detection; collaborative training for enforcement officers on product authentication; and joint public awareness campaigns to inform consumers about the dangers of counterfeit goods.
“Africa must embrace digital tools that improve traceability and transparency across supply chains. Such as the use of: blockchain-based tracking systems for product authenticity verification; digital product identifiers (such as barcodes, QR codes, or RFID tags); and AI-powered customs inspection systems to analyse shipment data and flag suspicious consignments to enhance surveillance capabilities while reducing reliance on manual inspection.”
