Trade minister urges requirements and regional price chains to spice up Africa’s industrialisation – Life Pulse Daily

Introduction

Africa’s industrial future is at a crossroads. While the continent is rich in raw materials, it remains largely dependent on exporting unprocessed resources, missing out on the economic benefits of value addition. In a recent high-level discussion at the Africa Trade Summit in Accra, Ghana’s Minister for Trade, Agribusiness and Industry, Elizabeth Ofosu-Adjare, called for urgent reforms to accelerate industrialization. Her message was clear: harmonized standards, regional value chains, and targeted policies are essential for building competitive industries and sustainable economic growth across Africa.

Key Points

Background

Africa’s industrialization has long been hampered by fragmented markets, inconsistent regulatory standards, and a focus on exporting raw materials rather than finished goods. The African Continental Free Trade Area (AfCFTA) offers a historic opportunity to change this trajectory by creating a single market for goods and services. However, for AfCFTA to deliver on its promise, countries must address structural barriers such as duplicative standards, limited access to inputs, and insufficient financing for manufacturers.

Analysis

The Role of Harmonized Standards

Minister Ofosu-Adjare highlighted that Africa’s industrialization is stymied by multiple, overlapping standards regimes. Products cleared in one country often face redundant testing in another, increasing costs and delaying market entry. Harmonizing standards would streamline trade, reduce transaction costs, and make African products more competitive both regionally and globally. This is not just a technical issue—it’s a strategic imperative for unlocking the AfCFTA’s potential.

Regional Value Chains as a Growth Engine

Instead of competing in isolation, African countries can maximize their collective strengths by coordinating production across borders. For example, one country could specialize in textiles, another in garment assembly, and a third in distribution. This approach not only boosts efficiency but also creates jobs, fosters innovation, and strengthens regional integration. Ghana’s focus on textiles, pharmaceuticals, and automotive parts exemplifies how targeted sector policies can drive industrial growth.

Raw Materials and Financing: The Twin Challenges

Reliable access to raw materials is the lifeblood of any industrial sector. Ghana’s Feed the Industry Programme directly links agricultural production to industrial demand, ensuring factories have the inputs they need. Additionally, by banning the export of certain non-ferrous raw materials, Ghana is keeping value addition local. On the financing front, high interest rates and limited access to credit remain significant barriers. Innovative financing models—combining government support, private investment, and donor funding—are needed to ease the burden on manufacturers.

Policy Coordination and Implementation

While many African countries have adopted ambitious industrial policies, implementation remains slow. Liberia’s Minister of Commerce and Industry, Magdalene E. Dagoseh, pointed out that uneven political will and skills gaps are major obstacles. For AfCFTA to succeed, governments must not only harmonize policies but also invest in infrastructure, skills development, and institutional capacity. Regional value chains and industrial corridors can serve as practical frameworks for aligning national and continental strategies.

Practical Advice

• For Policymakers: Prioritize harmonization of standards and invest in cross-border infrastructure to facilitate trade.
• For Businesses: Explore opportunities in regional value chains and seek partnerships that leverage comparative advantages.
• For Investors: Focus on sectors with strong local demand and government support, such as textiles, pharmaceuticals, and automotive parts.
• For Entrepreneurs: Engage with government programs like Ghana’s Feed the Industry to secure reliable inputs and financing.

FAQ

Conclusion

Africa’s industrialization is not just about building factories—it’s about creating an enabling environment where businesses can thrive, standards are harmonized, and value is added locally. The insights from Ghana’s Minister Ofosu-Adjare and other African leaders at the Africa Trade Summit underscore the need for coordinated action, targeted policies, and regional collaboration. By addressing bottlenecks in standards, raw materials, financing, and policy implementation, Africa can unlock its industrial potential and secure a prosperous future for its people.

Sources

Life Pulse Daily. “Trade minister urges requirements and regional price chains to spice up Africa’s industrialisation.” Life Pulse Daily, 29 Jan. 2026, www.myjoyonline.com.