Africa: Building a Case for Value Addition in Africa

What the report says

AllAfrica reported an opinion piece arguing that African economies can grow faster if they move beyond exporting raw materials and build stronger value chains at home. The article features industrial policy expert and former Kenya Association of Manufacturers chief executive Phyllis Wakiaga, who says value addition and industrialisation are essential for creating jobs, keeping more wealth on the continent and supporting broader development.

Wakiaga says governments need more than policy statements: they must back industrialisation with practical support for manufacturing ecosystems, including transport, energy, working capital and other inputs that affect farmers and processors alike. She also stresses the importance of affordable, patient capital for capital-intensive industries, suggesting that development finance institutions such as Afreximbank could help close financing gaps.

The piece uses cotton and textiles as a key example. It notes that Africa produces about 6% of global cotton, while most of it is still exported raw, and points to the need for more vertically integrated textile mills. It also cites Kenya’s experience, including the revival of Rivatex and the long closure of Kisumu Cotton Mills, as context for why outdated technology and poor management have held back industrial growth.

The article argues that special economic zones, lower utility costs and tax incentives could help attract investment, while regional and local markets may offer major opportunities if trade barriers are reduced.