By Merit Ibe
Industry leaders and manufacturing experts have urged policymakers to prioritise reforms in local raw material sourcing and enforcement of industrial standards, describing them as critical pillars for driving national productivity, attracting investment and enhancing export competitiveness.
The manufacturers, on the platform of the Pan African Manufacturers Association (PAMA), are raising fresh concerns over Nigeria’s dependence on imported raw materials and inconsistent adherence to industrial standards, calling for strategic interventions via coordinated action in raw materials sourcing, industrial standards and trade intelligence to unlock the full potential of the African Continental Free Trade Agreement (AfCFTA).
They highlighted structural constraints like import dependency and fragmented standards that hinder Africa’s manufacturing sector, which contributes less than 3 percent to global output despite the continent’s vast resources.
At a capacity building webinar themed: “Aligning Raw Material Sourcing, Industrial Standards, and Trade Intelligence for Africa’s Manufacturing Growth Under AfCFTA,” PAMA’s President, Mansur Ahmed, noted that realising AfCFTA full development dividend required far more than tariff reduction and market access, adding that it demands systemic transformation across infrastructure, industrial capacity, regulatory coherence and enterprise competitiveness.
He advocated for more focus on local sourcing and improved standards.
This includes seeking stable prices, reducing supply chain challenges, and ensuring ethical and sustainable sourcing practices.
The PAMA boss also said PAMA, through its latest empirical assesment of AfCFTA- on SMIs presented compelling evidence on both the latent potential and structural vulnerabilities of African SMIs under the framework.
He pointed out that 96 percent of SMIs indicated readiness to engage in intra African trade but infrastructure deficit, low production volumes, limited access to finance and knowledge gaps on AfCFTA protocols continues to constrain effective participation.
He explained that without targeted interventions especially in trade facilities, export clustering and regulatory awareness the benefits of AfCFTA- risk being under realised.
Policy experts, Director-General of Raw Materials Research and Development Council, Nigeria, Prof. Nnanyelugo Ike-Muonso, and Mrs. Ron Osman from the African Union Commission, Addis Ababa, reiterated that Africa’s industrial progress must be anchored in endogenous inputs, supported by investment in technology absorption, and governed by standards aligned with continental frameworks like the Pan African Quality Infrastructure (PAQI).
The insights around insecurity, logistics fragmentation, and asymmetric SME-market power dynamics highlighted the urgency of coordinated action from both regional institutions and national governments.
Ike-Muonso, in his presentation stressed the importance of local content policies, advocating for infrastructure development, tax incentives, and a raw material management information system to boost local sourcing.
Also, Mrs Osman, who is the Director of Industry, Minerals, Entrepreneurship and Tourism at the African Union Commission, Ethiopia, in her presentation, outlined strategies to enhance raw material processing, including sustainable sourcing of raw materials, harmonised standards via the Pan African Quality Infrastructure (PAQI), and leveraging the Africa Trade Observatory for market data. She underscored the AU’s SME Strategy and initiatives like the single-digit interest loan in Nigeria to support small businesses.
The participants raised concerns about insecurity affecting local sourcing, citing examples like grape farming in Nigeria’s Mambilla Plateau. They called for decisive government action to ensure farmer safety and facilitate the seamless flow of raw materials from farms to industry.
Specifically, they advocate for increased government support for local raw material sourcing and improved power infrastructure to enable consistent manufacturing operations.
During the session, the persistent technological deficit in Africa’s industrial sector was highlighted, prompting calls for stronger policy advocacy to attract modern technologies.
In his response, Prof. Ike-Muonso referenced RMRDC’s recommendation of a 30% value addition requirement before export, while Mrs. Osman emphasised the need for a mindset shift and better cross-sector coordination to address implementation gaps.
On logistics and trade facilitation, participants underscored the need to improve regional shipping infrastructure and advocated for a unified African payment system to reduce dependence on third-party currencies and enhance intra-African trade efficiency.
In its resolution, PAMA urged African Union and heads of state to address insecurity in Africa to unlock agricultural and mineral potential to provide the needed raw materials for rapid industrial development.
PAMA also called for stronger incentives to bridge technological gaps, learning from nations like China and India.
PAMA’s Secretary General, Mr. Segun Ajayi-Kadir, applauded participants and partners like Afreximbank and encouraged their continued engagement as PAMA prepares for the Intra-Africa Trade Fair in Algeria.
Ajayi-Kadir said the program reaffirmed PAMA’s commitment to driving Africa’s industrialisation through unified efforts in security, technology, SME support, and infrastructure development.