Afreximbank Advocates Industrialization to Boost Africa’s Economic Growth

The African Export-Import Bank (Afreximbank) has called for increased investment in manufacturing and infrastructure across Africa, emphasizing that these sectors hold the key to unlocking the continent’s economic potential.

In a statement on Friday, Afreximbank highlighted Africa’s abundant natural resources — from minerals and oil to agriculture and human capital — as longstanding contributors to global supply chains. However, the bank noted that much of the continent’s wealth is exported in raw form, generating minimal local value.

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The bank stressed the urgent need for Africa to transition from a resource-based economy to an industrial powerhouse, encouraging local processing and manufacturing to create jobs and drive economic growth. Developing power, transport, and digital infrastructure was also identified as essential for supporting industrial activities.

Afreximbank advocated leveraging the African Continental Free Trade Area (AfCFTA) to enhance intra-African trade and economies of scale while strengthening technical and managerial expertise to drive innovation.

The bank emphasized that Africa’s economic sovereignty relies on capturing more value within its borders. Rather than exporting raw materials, the focus should shift to value-added production, transforming commodities into finished goods for domestic, regional, and global markets.

To achieve this, Afreximbank called for targeted investments in manufacturing and industrial parks to support local industries, sector-specific value chains in agriculture, mining, and pharmaceuticals, and financial mechanisms to help businesses move up the value chain.

By prioritizing industrialization and reducing external dependencies, Afreximbank asserted that Africa could transition from being a supplier of raw materials to a significant player in the global economy.

“Africa’s prosperity depends on its ability to own its value chains and retain the wealth generated from its resources. By leveraging industrialization, trade integration, and strategic investments, the continent can rewrite the narrative — one where its wealth works for its people, not just for external beneficiaries.”

Afreximbank underscored its commitment to driving Africa’s economic transformation, providing the financial backbone for industrialization, trade expansion, and value chain development through initiatives such as industrial project financing, value chain development, AfCFTA-focused trade finance, and export manufacturing support.

In Nigeria, the country’s exports remain dominated by crude oil and raw materials. Reports indicate that Nigeria’s exports surged by 57.7% in the fourth quarter of 2024, with crude oil accounting for 68.87% of total exports. Other significant export products included liquefied natural gas, petroleum gases, superior-quality cocoa beans, and urea.

Afreximbank’s vision is clear: through industrialization and strategic investments, Africa can shift from being a source of raw materials to a major force in global economic development.