Africa’s economic opportunity—From extraction to value creation

The global economic order is undergoing a profound reset. Supply chains are fragmenting, geopolitical risks are being repriced, and nations are increasingly prioritising resilience, self-sufficiency, and strategic autonomy over the old orthodoxy of hyper-efficiency. In this historic reconfiguration lies a once-in-a-generation opportunity for Africa to redefine its economic destiny.

For decades, Africa has been trapped in an extractive economic model—exporting raw materials at low value and importing finished goods at high cost. This pattern entrenched dependency, limited job creation, weakened industrial capacity, and exposed African economies to the volatility of global commodity cycles. While Africa is rich in resources, it has remained poor in value capture.

Today, that model is no longer sustainable—or it is not inevitable.

A changing global context creates new space

Several global shifts are converging in Africa’s favour. The reshoring and nearshoring of manufacturing, the diversification of supply chains away from single geographies, rising labour costs in traditional manufacturing hubs, and the search for new growth frontiers are forcing global capital to look at Africa differently.

At the same time, industrial policy has regained its legitimacy as a tool of national development. Countries are no longer shy about supporting strategic sectors, protecting infant industries, and investing deliberately in domestic productive capacity. Africa now has the policy space to do the same—if it chooses wisely.

AfCFTA: Africa’s most powerful economic lever

The African Continental Free Trade Area (AfCFTA) represents the most ambitious economic integration project in Africa’s history. By creating a single market of over 1.4 billion people with a combined GDP exceeding $3.4 trillion, AfCFTA offers Africa the scale it has always lacked.

If effectively implemented, AfCFTA can: •       Stimulate intra-African trade, reducing dependence on external markets •       Enable economies of scale for African manufacturers •       Encourage regional value chains rather than fragmented national production •       Attract investment into processing, assembly, and manufacturing •       Support export diversification beyond raw commodities

The real power of AfCFTA lies not in trade liberalisation alone, but in industrialisation through integration.

“Africa does not merely need higher GDP growth; it needs structural transformation. Growth without transformation reproduces inequality, unemployment, and vulnerability.”

From what Africa has to what Africa wakes

Africa’s economic transformation will not be driven by what lies beneath its soil, but by what it produces with its hands and minds. The future lies in: •     Agro-processing, turning agricultural abundance into food security, exports, and rural jobs •    Manufacturing, exceptionally light manufacturing, assembly, and regional industrial clusters •     Pharmaceuticals and healthcare manufacturing, reducing import dependence and strengthening health sovereignty •     Creative and cultural industries, converting Africa’s stories, fashion, music, and film into global brands •      Modern services, including logistics, finance, digital services, and professional exports

These sectors create jobs, deepen skills, retain value locally, and build economic resilience.

Structural transformation, not just growth

Africa does not merely need higher GDP growth; it needs structural transformation. Growth without transformation reproduces inequality, unemployment, and vulnerability. Transformation changes the composition of the economy—shifting labour from low-productivity activities to higher-productivity sectors.

This requires deliberate leadership, long-term policy consistency, infrastructure investment, skills development, regulatory reform, and strong institutions. It also demands collaboration between governments, the private sector, academia, and regional bodies.

A choice before the continent

The current global reset offers Africa a window—not a guarantee. Other regions are also competing for investment, manufacturing relocation, and strategic relevance. Africa’s success will depend on whether it can act with unity, discipline, and strategic clarity.

The extractive era must give way to a value-creating Africa—one that produces, processes, brands, and trades with confidence.

Africa’s economic future will not be determined by what it exports raw, but by what it transforms, manufactures, and proudly sends to the world as Made in Africa.

The opportunity is here. The question is whether Africa will seize it.

Prof. Lere Baale, DBA, MBA, BPharm: President & Chairman, Governing Council – Nigeria Academy of Pharmacy; CEO – Business School Netherlands International (Nigeria).

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