Shettima Decries Africa’s 2% Contribution to Global Manufacturing Despite Vast Agricultural Potential

Abuja, Nigeria – Despite possessing vast agricultural resources, Africa contributes only 2% to global manufacturing output, a glaring disparity that exposes the continent's underutilized economic potential. Nigeria’s Vice President, Kashim Shettima, has expressed deep concern over this imbalance, calling for strategic investments to transform Africa’s rich agricultural sector into a manufacturing powerhouse.

The Manufacturing Deficit in Africa

Africa’s minimal share in global manufacturing stands in stark contrast to its abundance of natural and agricultural resources. The continent remains heavily dependent on imported goods, missing out on the economic benefits of value-added production. This reliance stifles job creation, technological advancement, and sustainable industrialization.

Shettima highlighted the need to shift away from raw commodity exports toward domestic processing and industrial production. Experts argue that if Africa were to harness even a fraction of its agricultural potential for manufacturing, it could drastically improve economic output, employment rates, and trade competitiveness.

Shettima’s Call for Economic Diversification

Vice President Shettima has been a strong proponent of diversifying Nigeria’s economy beyond oil dependency. Speaking at a Foreign Direct Investors Roundtable in Abuja, he stressed the importance of investing in agriculture, manufacturing, renewable energy, and digital innovation.

"Through targeted incentives and public-private partnerships, we aim to unlock the full potential of these sectors, catalyzing job creation and socio-economic empowerment across the country," Shettima stated.

His comments come as Nigeria’s non-oil sector contributed 93.62% to the GDP in the first quarter of 2024, indicating a shift towards sustainable economic sectors like agriculture and manufacturing.

Lessons from Benin’s ‘Farm to Fashion’ Model

One example of leveraging agricultural resources for industrial growth is Benin’s €550 million "Farm to Fashion" initiative. This ambitious project processes locally grown cotton into finished garments within Benin, capturing the entire value chain and retaining economic value within the country.

This initiative demonstrates how agriculture-based manufacturing can drive industrial growth, boost exports, and create jobs. If replicated across Africa, similar models could help reduce dependence on foreign imports while strengthening local economies.

Challenges Hindering Africa’s Industrial Growth

Despite its potential, Africa faces significant obstacles in becoming a global manufacturing hub, including:

• Inadequate infrastructure – Poor transport and electricity networks limit large-scale production.
• Limited access to capital – Many local manufacturers struggle to secure funding for expansion.
• Global competition – Established industrial nations dominate manufacturing, making it harder for African products to compete.

However, experts argue that with innovative policies, strong governance, and foreign investment, Africa can overcome these challenges and position itself as a key player in global manufacturing.

A Roadmap to Africa’s Industrial Future

Shettima’s push for agriculture-driven industrialization aligns with broader efforts across Africa to create sustainable industries. By focusing on value-added processing, strategic partnerships, and policy reforms, African nations can:

• Create millions of jobs in the manufacturing and agricultural sectors.
• Boost export revenues by selling finished goods instead of raw materials.
• Reduce dependency on foreign imports and strengthen local economies.

The disparity between Africa’s agricultural abundance and low manufacturing output is a call to action. With strategic investments, policy shifts, and industrial innovations, Africa can break free from its low manufacturing contribution and become a global economic force.

Vice President Shettima’s remarks underscore the urgent need for African nations to seize control of their resources, prioritize local production, and unlock their industrial potential. If properly harnessed, Africa’s agricultural wealth could serve as the foundation for an economic revolution—one that transforms the continent from a supplier of raw materials into a global manufacturing powerhouse.