Africa’s industrial challenge is not a shortage of raw materials, but the limited value the continent captures from them. Too much processing, technology development, skilled employment and industrial profit still take place outside Africa after extraction. The opportunity is to build these capabilities at home, strengthen regional supply chains and ensure that more of the wealth generated by Africa’s resources benefits its people.
The Second African Raw Materials Summit, held in Abuja on 19–20 October 2026 under the theme “From African Feedstock to African Factories”, brought together policymakers, industry leaders and development partners to advance the continent’s transition from raw material exports to domestic processing and manufacturing.
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A major focus was Nigeria’s proposed requirement for at least 30 per cent local value addition before certain raw materials can be exported. The amendment to the Raw Materials Research and Development Council (RMRDC) Establishment Act has passed the National Assembly but remains subject to presidential assent following legal review. The requirement is therefore not yet in force. Other reported proposals, including a 15 per cent export levy and possible restrictions on value-addition certificates, should also be understood as proposed measures rather than established policy.
The urgency behind the discussions reflects Africa’s substantial mineral endowment. According to the African Development Bank, the continent holds approximately 30 per cent of the world’s critical mineral reserves, including cobalt, lithium, graphite, copper, manganese, nickel and rare earth elements. These resources are essential to batteries, renewable energy systems, electric vehicles and other technologies shaping the global economy.
Yet resource abundance has not translated into equivalent industrial capacity. Africa continues to export significant volumes of unprocessed or minimally processed materials, while higher-value activities take place elsewhere. Estimates cited by development institutions indicate that the continent captures only a small share of the value generated along critical mineral supply chains. Closing this gap will require more than extraction: it will demand investment in refining, component manufacturing, research and technology.
The economic opportunity is considerable. The World Economic Forum has highlighted the potential for mineral beneficiation to expand Africa’s gross domestic product and create millions of industrial jobs. However, these gains are projections rather than guaranteed outcomes. Their realisation depends on reliable electricity, transport infrastructure, affordable finance, technical expertise and access to competitive markets.
Nigeria’s proposed 30 per cent requirement is intended to encourage investment in local processing, manufacturing and research. Government projections cited in reports suggest the policy could support the country’s ambition to reach a $1 trillion economy by 2030 and create 1.2 million skilled manufacturing jobs within five years. These remain targets, and their achievement will depend on whether businesses can secure the infrastructure, financing and skills needed to operate efficiently.
The competitive challenge is already visible in the difference between raw materials and finished products. Bauxite, for instance, must undergo energy-intensive processing before it becomes aluminium, a material used across construction, transport and manufacturing. Similarly, processing cobalt closer to extraction sites can increase the value captured locally, although the extent of that gain depends on processing costs, technology, product quality and market prices.
At the summit, UNIDO’s representative to Nigeria and ECOWAS, Ambassador Philbert Johnson, highlighted the constraints that unprocessed raw material exports place on industrial development, employment and economic diversification. He called for stronger research capacity, reliable infrastructure and workforce development.
RMRDC Director-General Professor Nnanyelugo Ike-Muonso outlined five priorities: a continental raw materials value-addition compact, an industrial investment pipeline, a raw materials intelligence platform, regional value chains linked to the African Continental Free Trade Area (AfCFTA), and partnerships to translate African research into commercial applications.
Nigeria’s Minister of Innovation, Science and Technology, Dr Kingsley Udeh, also disclosed that the Federal Executive Council had approved the establishment of a National Research and Innovation Development Fund, with the relevant bill before the National Assembly. If implemented effectively, such financing could help bridge the gap between scientific research and industrial production.
Participants also discussed a continental database of raw materials to improve information on resources, producers, investors and potential industrial partners. The summit resolved to establish an independent secretariat to coordinate implementation, while Kenya was announced as the host of the third edition in 2027.
The AfCFTA offers another route to scale. Through coordinated standards, customs procedures and industrial policies, one country could process minerals or agricultural inputs for manufacturers in another, reducing the pressure on every country to develop every stage of a supply chain independently.
Ultimately, Africa’s transition from feedstock exports to domestic manufacturing will not be achieved through legislation or summits alone. The real test is whether African businesses can process resources competitively, develop technology, supply regional markets, create skilled jobs and uphold strong social and environmental standards.
As Ike-Muonso cautioned, the priority must be to implement the commitments already made. Africa’s industrial future will depend not simply on what lies beneath its soil, but on the factories, expertise and productive capacity it builds from those resources.
