Maximizing Trade Value for Africa Through In-Continent Value Addition
- Author HALILU, Abdulmalik Usman
- Co-Author AJIEH, Miriam Ibi-ilate
- DOI https://ww
- Country : Nigeria
- Subject :
Keywords : Raw materials, processed commodities, semi-finished goods, export dependence and industrialization.
Abstract
This paper examined the persistent pattern of raw material exportation in Africa and the strategic transition toward exporting semi-finished or processed commodities as a means of promoting industrial development and economic sustainability across the continent. Despite being richly endowed with vast natural and mineral resources, African countries continue to occupy the lowest rung of the global value chain by exporting unprocessed raw materials to industrialized nations in the Global North. The key objectives of this paper are is to analyze the underlying factors responsible for Africa’s over-reliance on the exportation of raw materials and to propose actionable pathways toward structural economic transformation. Anchored on the world systems theory, the study situates Africa within a an historically entrenched global economic structure where peripheral regions supply raw materials to core industrial economies, reinforcing dependency and underdevelopment. The paper explored several key concepts, including raw materials, exporting raw materials, exporting semi-finished goods, and processed commodities. Through a qualitative methodology based on secondary data, including scholarly publications, institutional reports, and trade statistics, the study offers a comprehensive analysis of current trends and structural constraints. One key finding reveals that the absence of technical know-how to produce capital goods such as machinery and advanced processing technologies significantly hampers Africa’s capacity to process its own raw materials, leaving it vulnerable to global price fluctuations and economic shocks. Hence, the study underscores the urgent need for Africa to reconfigure its economic model by embracing industrialization and reducing its dependency on external markets for value addition. Based on the findings, the paper recommends, among others, the development of local processing industries through targeted investment, capacity building, and technology transfer initiatives. Such a shift is critical for enhancing domestic value chains, creating employment, and achieving long-term sustainable development.
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