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Africa’s Raw Materials Summit Pushes Local Processing
Africa’s Raw Materials Summit Pushes Local Processing
Nigeria and other African countries have renewed calls for increased local processing of raw materials, stronger manufacturing capacity and greater investment in industries capable of converting the continent’s natural resources into finished products.
The call followed the conclusion of the Second African Raw Materials Summit, held in Abuja on October 19 and 20, where government officials, lawmakers, researchers, manufacturers, investors and development partners examined strategies for accelerating industrialisation and promoting sustainable economic growth.
Participants emphasised the need for African economies to reduce dependence on exporting unprocessed commodities and importing finished goods, arguing that greater domestic value addition would create jobs, strengthen local industries and retain more economic benefits within the continent.
The deliberations focused on local sourcing, industrial financing, research commercialisation, regional trade and the development of measurable targets to translate policy commitments into tangible manufacturing outcomes.
The Director-General of the Raw Materials Research and Development Council (RMRDC) and convener of the summit, Professor Nnanyelugo Ike-Muonso, advocated stronger continental collaboration to promote value addition and industrial investment.
He proposed a continental value-addition compact, an industrial investment pipeline and a shared raw-materials intelligence platform to improve coordination, attract investors and strengthen manufacturing capacity across Africa.
Ike-Muonso also called for regional value chains under the African Continental Free Trade Area (AfCFTA), stressing the importance of partnerships between research institutions and industry.
He cited agricultural commodities such as cocoa, cashew and sesame as resources that could generate greater economic returns when processed locally into intermediate and finished products.
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According to him, connecting Africa’s abundant natural resources with competitive manufacturing would help the continent move beyond its traditional role as a supplier of primary commodities to foreign industries.
At the summit, Uche Nwachukwu of the Bank of Industry highlighted the potential benefits of strengthening local sourcing among Nigerian manufacturers.
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He disclosed that food and beverage companies within the bank’s portfolio had reduced raw-material imports by 67 per cent, presenting the development as evidence of the opportunities available through domestic sourcing.
Nwachukwu called for long-term financing to help businesses transform research findings, innovative ideas and viable proposals into operational factories.
He further stressed the need for stronger collaboration among government agencies, financial institutions, manufacturers, research organisations and small and medium-sized enterprises to support businesses from the development stage to full-scale production.
On the legislative front, the Chairman of the Senate Committee on Science and Technology, Senator Aminu Iya Abbas, reaffirmed the National Assembly’s commitment to advancing proposed legislation requiring a minimum of 30 per cent value addition to raw materials.
The proposed measure is intended to encourage local processing, stimulate investment in manufacturing and expand employment opportunities.
However, participants noted that the effectiveness of such a policy would depend on reliable electricity, adequate infrastructure, affordable financing, modern processing facilities and a predictable regulatory environment.
They also stressed that local manufacturers must have the technological and operational capacity to produce goods that meet competitive pricing and quality standards in domestic and international markets.
Research commercialisation emerged as another major priority, with stakeholders urging universities and research institutions to strengthen partnerships with industry and investors.
They argued that scientific discoveries would have greater economic impact if translated into commercially viable products, technologies and production processes that respond to market needs.
The proposed African Industrial Investment Pipeline was identified as a potential platform for connecting viable raw-material processing projects with financiers and development partners.
Participants also highlighted the AfCFTA’s potential to expand regional trade in manufactured goods and encourage African countries to develop complementary production networks.
Under such arrangements, countries could specialise in different stages of production, source intermediate goods from neighbouring economies and benefit from larger markets for African-made products.
They nevertheless identified high transportation costs, inadequate infrastructure, inconsistent regulations and limited access to finance as obstacles to regional industrial cooperation.
The summit consequently called for improved logistics, stronger trade facilitation and coordinated industrial policies to help African manufacturers compete more effectively.
As the meeting ended, stakeholders emphasised that the success of its recommendations would depend on implementation, measurable targets, sustained investment and effective monitoring.
For Nigeria, the proposed value-addition legislation, increased local sourcing and commercialisation of research offer potential pathways to economic diversification and expanded manufacturing.
The country’s agricultural produce and mineral resources provide opportunities for developing processing industries, but stakeholders maintained that these opportunities must be supported by investment in technology, reliable energy, skilled manpower and efficient supply chains.
They also cautioned that policies promoting local processing must be accompanied by an enabling business environment that allows manufacturers to operate efficiently and compete on quality and price.
The summit concluded with a renewed call for African governments, businesses, researchers and investors to work together to transform the continent’s resource wealth into industrial capacity, exportable products and sustainable employment.
Ultimately, stakeholders said, the measure of success would be the investments secured, factories established, technologies commercialised and proportion of African raw materials processed locally following the summit.
By Sophina Ovuike, Abuja
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