Dr. Akinwumi Adesina, President of the African Development Bank (AfDB), has urged African leaders, including Nigeria’s President Bola Tinubu, to end the continued export of raw materials if the continent is to move out of poverty.
Despite Africa being abundantly blessed with raw materials essential for global manufacturing, the region contributes less than 2% to global industrial output. According to Adesina, this lack of value addition is at the heart of Africa’s economic stagnation and underdevelopment.
In a statement posted on his official X account, the AfDB chief emphasized the urgent need for African countries to shift from exporting raw materials to producing finished goods. His message reads:
“Africa must end the exports of its raw materials. The export of raw materials is the door to poverty. The export of value-added products is the highway to wealth. And Africa is tired of being poor.”
He stressed that commodities such as lithium, which is vital in the production of mobile phones and other electronics, are sourced from Africa but are rarely processed within the continent. Instead, they are exported in their raw state, depriving local economies of job creation and industrial growth.
Citing data from the Office of the U.S. Trade Representative and other international sources, nearly 98% of global manufacturing occurs outside Africa. This imbalance has led Adesina to push for policies that will prioritize industrialization and local value chains across the continent.
AfDB Warns Nigeria of Potential Trade Disruptions
Adesina recently cautioned that rising tariffs, particularly from the United States, could trigger severe trade disruptions for Nigeria and other African economies. He stated that such measures may lead to reduced trade volumes, weakening of local currencies, and increased debt servicing burdens.
His warning came amid ongoing global trade tensions, including new tariff policies that threatened to destabilize markets. A 10% baseline tariff and heightened duties on Chinese imports to the U.S. have already affected global supply chains and trade dynamics.
Agro-Industrial Investment and Support for Nigeria
To reduce dependence on raw exports, the AfDB has been promoting agro-industrialization across the continent. In Nigeria, more than 21 states have enrolled in the second phase of the AfDB’s Special Agro-Industrial Processing Zones (SAPZ) programme.
Initially launched in eight states and the Federal Capital Territory, this initiative aims to strengthen food security and drive agro-based industrial growth, allowing more states to benefit from infrastructure and policy support.
Partnership for Africa’s Largest Airport
In a separate development, the African Development Bank recently entered into a landmark agreement with Ethiopian Airlines to construct what is expected to become Africa’s largest airport. Valued at $7.8 billion, the project will increase Ethiopia’s passenger capacity from 17 million annually, supporting regional economic expansion.
