MAN Urges Africa to Boost Industrial Capacity Through Value Addition
Africa’s Industrial Future Depends on Value Addition, MAN Warns
The Manufacturers Association of Nigeria (MAN) has called on African countries to strengthen industrial capacity by prioritising value addition and reducing reliance on raw material exports. The appeal was made by MAN Director-General, Segun Ajayi-Kadir, during a facility tour in Ogun State, where he emphasised the need for stronger industrial value chains across the continent.
Shift from Raw Exports to Value Creation
MAN stressed that Africa must transition from exporting raw materials to processing resources locally in order to maximise economic value. Ajayi-Kadir noted that while many African countries possess abundant natural resources, limited industrial capacity continues to constrain their ability to capture higher value in global markets.
He cited examples such as the Democratic Republic of Congo, which holds vast mineral resources but lacks sufficient processing capacity to fully benefit from them. The current export structure across much of Africa reflects a pattern where raw commodities are shipped abroad and re-imported as finished goods at significantly higher costs.
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Backward Integration as a Strategic Priority
The association highlighted backward integration where industries source and process inputs locally as a key strategy for building resilient manufacturing ecosystems. According to MAN, this approach strengthens domestic industries, reduces import dependence, and enhances job creation.
Ajayi-Kadir commended local manufacturers adopting this model, noting that companies investing in end-to-end production processes contribute to the development of sustainable industrial value chains.
Nigeria’s Manufacturing Ecosystem in Focus
The remarks were made during a visit to Coleman Technical Industries Limited in Sagamu, Ogun State, a company recognised for its investments in telecommunications and power infrastructure through local production of wires and cables.
MAN described the company as a leading example of industrial growth driven by local capacity development. The association also identified Ogun State as an emerging manufacturing hub, reflecting increased industrial activity and competitiveness within Nigeria.
Regional Integration and Industrial Expansion
The push for value addition aligns with broader continental goals, including strengthening intra-African trade under frameworks such as the African Continental Free Trade Area (AfCFTA). Expanding industrial capacity is seen as critical to ensuring African countries can compete effectively within regional and global markets.
Recent data indicates that Africa continues to face challenges in converting resource wealth into industrial output, with many economies still dependent on primary commodity exports. This limits job creation, technology transfer, and long-term economic resilience.
Policy and Investment Implications
MAN reiterated the need for policies that promote local manufacturing, incentivise investment in processing facilities, and encourage the consumption of locally produced goods. Strengthening infrastructure, improving access to finance, and ensuring stable energy supply remain essential to achieving these objectives.
The call also reflects growing concern among stakeholders that continued reliance on raw material exports undermines industrialisation efforts and exposes economies to global price volatility.
MAN’s call underscores a critical inflection point for Africa’s economic trajectory. Transitioning from raw material exports to value-added production offers a pathway to sustainable industrial growth, job creation, and improved trade balances. The extent to which African countries implement policies that support local processing and industrial capacity will determine their ability to unlock long-term economic value.
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