The Pan-African Manufacturers Association (PAMA) has said that persistent insecurity has constituted a major threat to the manufacturing sector’s growth in Africa, citing violent insurgencies, political instability, and armed conflicts as key threats to industrial progress and investor confidence.
This assertion was contained in a report titled “The Shadow of Insecurity: A Threat to Africa’s Manufacturing Sector,” published in its February newsletter.
PAMA noted that conflicts across the continent are crippling industrial output and driving away investors.
The association called for urgent interventions to strengthen security institutions, rebuild infrastructure, and provide financial support to struggling manufacturers.
“Rising insecurity in Africa continues to cripple manufacturing. Violent insurgencies, armed conflicts, and political instability slashing industrial output and investor confidence,” the report stated.
Major violent conflicts
The Pan-African body highlighted major conflicts with negative impact on industrial growth in the region to include: the conflict between the Democratic Republic of Congo (DRC) Army and the Rwanda-backed M23’; and insurgency in Sudan and South Sudan.
- PAMA noted that the conflict in the DRC has severely disrupted mineral processing, a sector that is crucial to global technology supply chains. The instability threatens Africa’s role as a key supplier of raw materials to industries worldwide.
- It further noted that Sudan’s staggering inflation rate—soaring to 145.14% as of January 2025— fuels economic decline and industrial stagnation in the country.
- The association urged African governments and regional blocs to prioritize security, improve economic resilience, and stabilize key industrial hubs through targeted policies.
- The association stressed that addressing these security challenges is critical to unlocking Africa’s manufacturing potential and ensuring sustainable economic growth.
“This edition sheds light on the alarming impact of insecurity on manufacturing and calls for urgent and coordinated responses including strengthening security institutions, rebuilding infrastructure, and deploying financial safety nets for manufacturers to stabilize Africa’s industrial hubs,” the report emphasized.
PAMA called for improved security, unity and the implementation of homegrown solutions such as AfCFTA to confront the challenges impeding industrial growth in the continent.
“History teaches us that crises often birth innovation. By uniting behind homegrown solutions, leveraging the AfCFTA, and confronting insecurity head-on, Africa can transform today’s challenges into tomorrow’s opportunities.”
PAMA encourages “Buy Africa”
In its call to action, the association called for improved patronage of locally manufactured goods. “Buy Africa, Build Africa, the solution lies in a collective shift toward prioritizing Made-in-Africa goods,” it said.
It argued that the United States’ “America First” agenda and the escalating global tariff wars “has exposed Africa’s overreliance on imported goods. This dependence risks turning the continent into a dumping ground for substandard products while stifling local industries.”
It stressed that patronizing locally manufactured goods is necessary, not just for economic growth but also for economic survival.
What you should know
- Many African countries, including Nigeria, struggle with economic difficulties, including high inflation, currency depreciation, and weak infrastructure.
- Nigeria’s manufacturing sector struggles to make a significant contribution to the economy as it is plagued by such issues as multiple taxation, high inflation, and energy insecurity, among others.
- Nairametrics reported Nigeria’s Gross Domestic Product grew in the fourth quarter of 2024 by 3.84% year-on-year, but the manufacturing sector’s contribution declined to 8.07% from 8.23% in Q4 2023.
