ABUJA, June 26, 2026 – African nations have been urged to shift away from the export of raw materials and focus on developing industries that can extract greater economic value from the continent’s abundant natural resources.
The call was made by the Vice President and Chief Economist of the African Development Bank (AfDB), Prof. Kevin Urama, at the conclusion of the fifth African Natural Resources and Energy Summit (AFNIS) held in Abuja.
Urama said sustainable economic growth and structural transformation across the continent would depend on Africa’s ability to process and utilise its resources locally rather than exporting them in their raw form.
He advocated the development of integrated economic corridors that connect mining, agriculture, manufacturing and markets across the continent.
According to him, infrastructure projects should be designed to support industrial development and regional trade rather than serving mainly as channels for resource extraction.
“We need to link up corridors that connect markets within Africa instead of building infrastructure mainly for extraction,” Urama stated.
He observed that many transport networks on the continent still mirror colonial-era systems created primarily for moving raw materials abroad rather than strengthening regional supply chains.
Urama further emphasised the importance of improving connectivity among African countries to facilitate trade and deepen economic integration.
He noted that the high cost of travelling across the continent continues to limit business opportunities and collaboration among African nations.
The economist also highlighted Africa’s vast renewable energy resources, including solar, hydro, oil and gas, stressing that stronger cooperation is needed to maximise their potential.
He pointed out that Africa possesses nearly 60 per cent of the world’s technical solar energy potential, yet much of it remains underutilised.
According to him, harnessing these resources effectively could play a major role in accelerating industrialisation and economic expansion.
Urama cited projects such as the Inga Dam in the Democratic Republic of Congo and the immense solar potential of the Sahara Desert as examples of opportunities capable of transforming the continent’s industrial future.
He stressed that such ambitions could only be achieved through collective action among African countries.
“Countries cannot achieve this alone. We need one Africa, one resource, working together,” he said.
Urama also advocated stronger local content policies aimed at increasing African participation and ownership in the natural resources sector.
He encouraged governments to prioritise indigenous businesses in procurement, licensing and investment opportunities.
Drawing lessons from countries such as China, South Korea and Singapore, he noted that local content strategies had played a significant role in their economic advancement.
“Local content policy is not new. These countries deployed it to move from developing economies to advanced nations,” he added.
The AfDB official further proposed the adoption of minerals development agreements in place of conventional mining concession arrangements.
He argued that investors should be encouraged to process and add value to mineral resources within Africa rather than exporting them for refinement elsewhere.
According to him, local processing would generate employment, facilitate technology transfer and contribute to lower carbon emissions.
Urama revealed that AfDB research indicated that producing critical mineral components within Africa could significantly reduce manufacturing costs.
He explained that the production of lithium-ion battery precursors on the continent could lower costs by more than 60 per cent.
He added that building robust mineral value chains would strengthen Africa’s industrial base and create opportunities for its growing population of about 1.5 billion people.
The summit ended with renewed calls for stronger regional cooperation and investment in value-added industries as a pathway to sustainable growth, industrial development and greater competitiveness for African economies.