Publication: ExportFocus Africa/Jayden Bagshaw
Executive Summary
The African Export-Import Bank (Afreximbank) is recalibrating its strategic priorities to focus on local processing of raw materials across the continent. This shift aligns with the broader goals of the African Continental Free Trade Area (AfCFTA), which seeks to transform Africa from a supplier of raw commodities into a producer of value-added goods. Incoming Afreximbank President George Elombi announced this initiative at the Intra-African Trade Fair in Algeria, emphasizing the critical role of both governments and the private sector in scaling up industrial capacity.
Context and Rationale
Africa holds vast reserves of raw materials, yet much of its economic potential remains untapped due to limited local processing. Historically, raw commodities have been exported with minimal value addition, resulting in lost revenue, missed employment opportunities, and vulnerability to global price shocks.
AfCFTA presents a unique opportunity to reverse this trend by fostering intra-African trade, industrialization, and regional value chains. Afreximbank’s renewed focus on processing is a strategic response to this call for transformation.
Strategic Objectives
Afreximbank’s new direction aims to:
• Promote industrialization by financing processing facilities across member states
• Reduce export dependency on unprocessed raw materials
• Strengthen regional value chains to boost intra-African trade
• Create jobs and build skills in manufacturing and technology sectors
• Enhance economic resilience through diversified production
Policy Recommendations
To support Afreximbank’s strategy and maximize its impact, ExportFocus Africa recommends the following:
1. Public-Private Partnerships (PPPs): Governments should incentivize collaboration between local entrepreneurs and international investors to build processing infrastructure.
2. Regulatory Reform: Streamline licensing and compliance procedures to attract investment in processing industries.
3. Capacity Building: Invest in vocational training and technical education to prepare the workforce for industrial roles.
4. Regional Integration: Harmonize standards and logistics across borders to facilitate movement of processed goods within AfCFTA.
5. Access to Finance: Expand credit facilities and de-risk lending to SMEs involved in value addition.
Conclusion
Afreximbank’s pivot toward local processing marks a critical step in Africa’s journey toward economic sovereignty and industrial maturity. By aligning financial strategy with AfCFTA’s vision, the bank is helping to unlock the continent’s full potential. Coordinated policy action will be essential to ensure that this momentum translates into inclusive, sustainable growth.