Follow Us on Google
•80% of goods consumed imported, job losses worsening –Manufacturers
By Merit Ibe
Africa’s ambition to become a global manufacturing hub is slipping further out of reach as an overwhelming reliance on imported goods continues to hollow out local industries, leaving factory floors silent and thousands of workers unemployed.
Manufacturers say more than 80 per cent of products consumed across the continent are sourced from overseas, a trend they describe as a major threat to industrial growth, value addition and economic transformation.
They warn that unless African governments urgently reverse the tide through stronger industrial policies, improved infrastructure and support for local producers, the continent will remain a consumer of foreign-made goods while sacrificing jobs, investment and long-term prosperity.
Nigeria, which prides itself as the giant of Africa, is feeling the heat of slow economic diversification and strained manufacturers.
As such, the consequences of import dependence are even more pronounced.
Despite its vast natural resources and large consumer market, the country imports a significant share of finished goods, including machinery, pharmaceuticals, processed foods, textiles and industrial inputs. This trend has contributed to the closure or underutilisation of many factories, rising unemployment, reduced value addition to local raw materials and persistent pressure on the naira.
For Nigeria alone, estimates indicate that between 70 per cent and 80 percent of manufactured goods consumed in Nigeria are imported, depending on the product category and the source.
Records show that in Nigeria, more than 90 per cent of consumer electronics are imported.
For pharmaceuticals, around 70–80% of medicines are imported or rely heavily on imported inputs.
Over 90% of industrial machinery and equipment are imported.
For food and beverages, a larger share is produced locally, although many manufacturers still depend on imported raw materials.
Manufacturers also face stiff competition from cheaper imported products, making it difficult for local industries to expand production and invest in innovation.
Experts argue that reversing this trend is essential for achieving sustainable economic growth and industrial transformation. Strengthening domestic manufacturing through improved infrastructure, affordable financing, stable energy supply, supportive trade policies and the promotion of value-added production would not only reduce import dependence but also enhance Africa’s competitiveness under the African Continental Free Trade Area (AfCFTA).
A stronger manufacturing base would create jobs, boost exports, improve foreign exchange earnings and position both Nigeria and the continent for long-term economic resilience.
Secretary-General of the Pan African Manufacturers Association (PAMA), Segun Ajayi-Kadir, in a report raised concerns over the rapid decline of Africa’s manufacturing sector, revealing that more than 80 per cent of manufactured goods consumed across the continent are imported.
Ajayi-Kadir warned that Africa is facing a “quiet industrial crisis” as factories continue to shut down, jobs disappear and economies become increasingly dependent on imports.
Ajayi-Kadir said the continent’s industrial base is steadily eroding, stressing that the greatest danger is that the decline remains largely unnoticed.
Other News
“Across Africa, a quiet crisis is eroding the continent’s industrial base. Factories are closing, jobs are disappearing and economies are becoming more dependent on imports. The decline is real, but the danger is greater because it is largely invisible,” he said.
According to him, the disappearance of factories is being driven by deep-rooted structural challenges, including unstable energy supply, poor logistics, import pressure, dwindling investment and a shortage of technical skills.
He explained that unreliable and expensive electricity has forced production stoppages and significantly increased manufacturing costs. He also cited poor infrastructure, rail network failures, port congestion and high transportation costs as major constraints reducing the competitiveness of African manufacturers.
Ajayi-Kadir further noted that cheap imports, particularly from Asia, continue to undercut locally manufactured products, shrinking the market share of domestic industries.
He added that policy uncertainty, high business risks and low investment returns are discouraging investors from committing capital to manufacturing, while the shortage of skilled technical workers is weakening productivity and innovation across the sector.
The PAMA chief disclosed that factory closures have accelerated across the continent over the past decade, with thousands of manufacturers either shutting down or scaling back operations. He noted that South Africa alone lost more than 600,000 manufacturing jobs between 2008 and 2023, citing data from Statistics South Africa.
He also referenced data from the African Continental Free Trade Area, which shows that over 80 per cent of manufactured goods consumed in Africa are imported. In addition, he said World Bank data indicate that 14 out of 18 African countries recorded a decline in manufacturing value added as a share of GDP between 2010 and 2022.
Ajayi-Kadir explained that Africa’s deindustrialisation is occurring gradually rather than through sudden factory closures.
“Factories do not always close; they simply stop producing at scale,” he said, noting that many firms are grappling with compressed profits, underutilised production capacity, partial shutdowns and, in some cases, conversion of manufacturing facilities into warehouses and storage centres.
He attributed the trend to rising production costs, weak consumer demand and shrinking profit margins, which have forced manufacturers to reduce shifts, suspend operations temporarily and lay off workers.
According to him, the continent faces a “hidden indicator problem,” where overall GDP growth masks the steady decline of manufacturing.
“Manufacturing’s share of Africa’s GDP fell from 11.4 per cent in 2010 to 9.2 per cent in 2022. Growth is becoming increasingly services-driven and import-led, while real production continues to weaken,” he said.
Ajayi-Kadir warned that continued deindustrialisation would weaken exports, deepen import dependence, erode industrial capabilities and technology, reduce employment opportunities for Africa’s growing youth population and expose economies to greater risks from currency volatility, inflation and global supply chain disruptions.
“The most dangerous aspect is not factory collapse but factory silence. Africa is experiencing a silent contraction of its productive core. If overlooked today, it will limit industrialisation, jobs and shared prosperity tomorrow,” he said.
To reverse the trend, he called for stable and affordable energy for industries, modern transport and logistics infrastructure, stronger support for competitive local manufacturing and increased investment in technology, innovation and skills development.
Despite the challenges, Ajayi-Kadir expressed confidence that Africa can still achieve sustainable industrialisation if governments implement the right policies and create an enabling environment for manufacturers.
John Isemede, Trade and Investment expert said if Nigeria can change the tide which we can, from imports to export thinking nation, in the next two years “we can jump from no 47 to 7 in the world.
Our Forex, trade, and generally the economy will improve.
He stressed that local production, value addition at home along the chain, real investments and export activities is the way to go. “ Not this borrowing and borrowing and massive imports of everything into our already saturated market.”
