Africa Exporting Wealth and Importing Poverty: Sir Sam Jonah’s Urgent Warning on Raw Material Exports and Industrialization

Introduction

In a stark critique that resonates across the continent, eminent Ghanaian business leader Sir Sam Jonah has sounded the alarm: Africa is exporting wealth and importing poverty. Delivered during the launch of the Africa Trade Summit 2026 in Accra on November 18, 2025, his speech highlights how reliance on raw material exports like gold, cocoa, and oil perpetuates economic dependency. Instead of building local industries, African nations ship unprocessed resources abroad, only to buy back finished products at higher prices. This cycle, Jonah argues, effectively exports jobs and imports unemployment, stifling true African industrialization.

This warning is timely as the African Continental Free Trade Area (AfCFTA) gains momentum. By prioritizing value addition and private sector-driven transformation, Jonah offers a roadmap for sustainable growth. This article breaks down his key insights, analyzes the economic pitfalls of raw exports, and provides practical steps for change.

Analysis

Sir Sam Jonah’s remarks draw from decades of hands-on experience, including his pivotal role as CEO of Ashanti Goldfields Company Limited from 1986 to 2004, where he transformed it into a global mining powerhouse. Now Executive Chairman of Jonah Capital Limited, he dissects Africa’s entrenched pattern of primary commodity dependence.

The Half-Century Trap of Raw Material Exports

For over 50 years, resource-rich nations like Ghana have exported raw commodities without capturing full value. In 2023, Ghana’s top exports included gold valued at $15.6 billion and crude petroleum at $5.13 billion, according to data from the Observatory of Economic Complexity (OEC). Cocoa, where Ghana ranks as the world’s second-largest producer, follows suit: raw beans dominate exports, far outpacing processed products like cocoa paste or butter.

This model creates a vicious cycle. Raw materials are shipped to foreign factories, where jobs, technology, and profits are generated elsewhere. Africa then imports finished goods—chocolate from cocoa, jewelry from gold—paying premiums that drain forex reserves. Jonah succinctly captures this: “We export jobs and import unemployment,” underscoring lost opportunities in manufacturing and skills development.

Broader Implications for African Industrialization

The issue extends beyond Ghana. Across Africa, raw exports account for over 70% of merchandise trade for many countries, per World Bank reports. This hampers industrialization by feeding competitors’ industries while local factories idle due to high input costs and weak infrastructure. Jonah’s analysis aligns with economic theory: comparative advantage in resources must evolve into competitive advantages through processing and innovation.

Summary

Sir Sam Jonah’s speech at the Africa Trade Summit 2026 launch criticizes Africa’s raw material export model as a poverty importer. He advocates shifting to finished goods production, led by the private sector, leveraging AfCFTA for regional integration. Governments should enable, but businesses must execute, building factories, supply chains, and markets to drive real industrialization.

Key Points

Practical Advice

To break the raw export cycle, African businesses and policymakers can adopt these verifiable strategies, drawn from successful models like Ethiopia’s leather processing and Rwanda’s agro-processing zones.

Invest in Value Addition Chains

Prioritize processing: Ghana’s cocoa board could expand facilities for butter and powder, as seen in Côte d’Ivoire’s 20% processed export rise (2020-2023, ITC data). Steps include joint ventures with tech providers for modern plants and skills training via vocational programs.

Leverage AfCFTA for Regional Markets

AfCFTA, launched in 2021, aims to boost intra-African trade from 18% to over 50%. Practical moves: Develop cross-border supply chains, e.g., Nigerian textiles feeding Ghanaian garment factories. Attend events like Africa Trade Summit 2026 to network and secure deals.

Build Private Sector Capacity

Entrepreneurs should seek long-term financing from development banks like AfDB. Governments: Offer tax incentives for manufacturers, streamline permits, and invest in energy/power reliability, as South Africa’s industrial estates demonstrate.

Points of Caution

While promising, industrialization faces hurdles. Infrastructure deficits—Africa’s power access is only 50% (World Bank, 2023)—can derail factories. Corruption risks siphon investments; transparent governance is essential. Over-reliance on commodities persists due to global demand, so diversification must be gradual. Jonah warns against waiting for perfect policies: action in the “real world” trumps endless reports.

Avoiding Common Pitfalls

Don’t neglect skills: Raw export nations often lack technicians; invest in STEM education. Monitor currency volatility, which hit Ghana’s cedi 50% in 2022, inflating import costs.

Comparison

Contrast Africa’s path with Asian tigers. South Korea transformed from raw exporter (1960s) to manufacturing hub via chaebol-led processing, now exporting $683B in goods (2023, WTO). Similarly, Vietnam added value to rice and coffee, boosting GDP per capita from $200 to $4,000 (1990-2023, World Bank).

Africa vs. Successful Peers

Africa can emulate by emulating private sector dynamism under policy support.

Legal Implications

AfCFTA’s legal framework, ratified by 47 nations, mandates non-tariff barrier reductions and dispute resolution via its tribunal. Jonah’s vision aligns: value addition complies with AfCFTA rules of origin, requiring 40% local content for duty-free trade. No criminal issues arise; instead, it promotes WTO-compliant industrialization. Investors benefit from stabilized IP protections under AfCFTA Annexes.

Conclusion

Sir Sam Jonah’s clarion call—”Africa exporting wealth and importing poverty”—demands urgent action. By ditching raw material exports for industrialized finished goods, powered by private sector innovation and AfCFTA, the continent can retain wealth, create millions of jobs, and achieve self-reliance. The Africa Trade Summit 2026 sets the stage; now, leaders and entrepreneurs must perform. This shift isn’t optional—it’s essential for Africa’s prosperous future.

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