The African Export-Import Bank (Afreximbank) has announced plans to create a special financing window dedicated to projects that convert Africa’s raw minerals into semi-finished and finished products.
Speaking during his swearing-in ceremony on Saturday, the bank’s new president, George Elombi, declared that his administration would work to end the export of raw commodities and minerals from the continent, emphasising a new era of domestic value addition and industrialization.
“No more Nigerian bauxite, or Gabonese manganese, or Cameroonian bauxite, or South African bauxite, raw. We are not interested,” Elombi said.
“We will focus on domestic processing. This has numerous benefits.”
He reiterated that his administration would focus on developing strategic industries that can drive industrialisation and job creation.
“Afreximbank will therefore create a new high-impact financing window, specifically for projects that process raw minerals into semi-finished goods or finished goods,” the president said.
Bank to establish mineral development programme
He said the bank intends to establish a strategic minerals development programme that will process and finance entire value chains, from extraction and refining to manufacturing finished components.
Elombi explained that less than 20 per cent of investment typically goes to mineral extraction, while over 80 per cent goes to supporting infrastructure such as roads, railways, ports, and power stations.
Also, the president cited poor infrastructure as a major bottleneck to intra-African trade, highlighting the need for improvement.
He said the bank already has an agenda with countries that already produce excess power to construct transmission lines and take it to those with less.
“We will accelerate investments in critical trade-enabling infrastructure projects that directly connect African markets to one another,” he said.
The president said Afreximbank will invest in modernising seaports, constructing highways and rail lines, and building specialised logistics hubs, warehousing facilities, and pipelines.
Elombi added that priority would be given to infrastructure that links production centres with markets to unlock trade potential and lower the cost of doing business.
What you should know
In April, former President of the AfDB, Dr. Akinwumi Adesina, called on African nations to put an end to the export of raw materials if the continent is to overcome poverty and underdevelopment.
“Africa must end the exports of its raw materials. The export of raw materials is the door to poverty. The export of value-added products is the highway to wealth. And Africa is tired of being poor,” he said.
According to data from the Office of the US Trade Representative and other multilateral institutions, Africa accounts for less than 2% of global manufacturing.
Meanwhile, its share of global trade remains under 3%. Despite being home to some of the world’s most sought-after raw materials, the continent captures minimal value from its natural wealth.
Efforts to change this narrative have gained momentum in recent years. Initiatives such as the African Continental Free Trade Area (AfCFTA) are designed to enhance intra-African trade, boost manufacturing, and encourage value addition across sectors.
