The Pan-African Manufacturers Association (PAMA) has called for coordinated policy action to strengthen industrial resilience and dismantle trade barriers, warning that recent global disruptions and persistent structural constraints continue to undermine Africa’s manufacturing competitiveness.
In a statement issued on Sunday, PAMA President Mansur Ahmed stated that a temporary disruption in the Strait of Hormuz, a key global energy corridor, has exposed deep vulnerabilities in Africa’s industrial base, even as longstanding frictions continue to limit the gains expected from the African Continental Free Trade Area (AfCFTA).
The Strait of Hormuz disruption, which briefly halted a route that carries roughly 20 per cent of global oil flows, has since been resolved. However, Ahmed said the episode triggered a surge in energy prices, freight costs and input prices, amplifying existing pressures on African manufacturers and highlighting structural weaknesses in supply chains.
“Beyond fertilisers, several plastic manufacturers have reported supply challenges due to reliance on petrochemical derivatives and crude oil by-products,” Ahmed said. “The disruption created ripple effects across supply chains, affecting industrial production in Africa and exposing vulnerability to external shocks.”
The shock constrained exports and contributed to shortages and rising prices of urea, a critical agricultural input, with knock-on effects for food production and agro-processing industries across the continent.
Ahmed said the incident underscored the urgency of building domestic buffers against global volatility. He urged governments to prioritise the development of local refining capacity and strategic petroleum reserves to stabilise supply during external disruptions.
“Boosting domestic refining would reduce dependence on volatile imported petroleum products and cushion future shocks,” he said.
PAMA also called for deeper backward integration and the expansion of regional value chains to reduce reliance on imported industrial inputs. According to Ahmed, Africa’s current industrial structure remains heavily exposed to global supply cycles, limiting its ability to absorb external shocks.
He recommended scaling up domestic production of key industrial inputs, including fertilisers, petrochemicals, steel and industrial chemicals, as part of a broader strategy to build self-sufficiency and strengthen manufacturing resilience.
The group further highlighted infrastructure gaps as a critical constraint. Inefficient ports, weak road networks and underdeveloped trade corridors continue to raise logistics costs and reduce the responsiveness of manufacturers to supply disruptions.
“Efficient logistics systems are essential for maintaining competitiveness in both regional and global markets,” Ahmed said, adding that improved transport networks would enable faster adjustments during periods of volatility.
Alongside supply-side risks, PAMA flagged persistent barriers to intra-African trade, despite the rollout of AfCFTA, which aims to create a single market for goods and services across the continent.
In a separate statement also issued on Sunday in Lagos, Ahmed said intra-African trade in manufactured goods remains low at about 18 per cent of total trade, far below Europe’s roughly 60 per cent. The gap, he said, reflects entrenched structural challenges that predate AfCFTA and continue to limit integration.
“Africa’s integration architecture has yet to deliver seamless cross-border trade in manufactured goods,” he said. “Trade across Africa remains complex, costly and inefficient, despite decades of integration efforts.”
Ahmed pointed to a range of constraints, including high tariffs and non-tariff barriers such as import bans, quotas and inconsistent product standards. These measures, he said, continue to fragment markets and discourage cross-border industrial activity.
Customs inefficiencies remain a major bottleneck. Manual processes and poor inter-agency coordination lead to delays, increase transaction costs and create uncertainty around delivery timelines, undermining supply chain reliability.
Infrastructure deficits compound these challenges. Congested ports, limited rail systems and weak road connectivity continue to slow the movement of goods, while high trade finance costs and currency volatility add further pressure on manufacturers operating across borders.
Ahmed also cited weak implementation of AfCFTA provisions as a key concern. While the agreement has generated momentum, inconsistent application of its rules across countries has limited its effectiveness in reducing trade frictions.
Informal and illicit trade, driven by price disparities and weak enforcement, further distorts markets and erodes government revenues, according to PAMA.
The association said limited development of regional value chains remains a central structural issue, with many African economies still operating in isolation and exporting raw commodities rather than value-added goods.
To address these constraints, PAMA called for a coordinated response involving governments, development finance institutions and the private sector.
Ahmed urged the adoption of digital trade systems, including single-window platforms and automated documentation, to streamline customs processes and reduce delays. He also called for the elimination of non-tariff barriers and consistent enforcement of AfCFTA rules to create a more predictable trading environment.