Manufacturing competitiveness across Africa will increasingly depend on effective industrial policies, reliable infrastructure, affordable financing and efficient logistics, rather than production costs alone.
In a recent manufacturing review, Secretary General, Pan African Manufacturers Association (PAMA), Segun Ajayi-Kadir, examined developments in the global manufacturing economy in June 2026, noting that governments were taking a more active role in shaping industrial ecosystems as geopolitical tensions, changing trade policies and supply-chain disruptions continued to influence production and investment decisions.
According to the report, industrial performance is now determined not only by the efficiency of individual firms but also by the quality of policies, institutions and productive infrastructure supporting businesses.
It cited Nigeria’s insurance recapitalisation reforms, South Africa’s Industrial Development Strategy and Kenya’s Health Products and Technologies Local Manufacturing Strategy as examples of policy interventions aimed at strengthening domestic industrial capacity, supplier development and investment.
The report also noted that developments outside Africa were reshaping the competitive environment for African manufacturers. The European Union’s Carbon Border Adjustment Mechanism, alongside tighter steel safeguard measures in Europe and the United Kingdom, demonstrates the growing importance of environmental standards and trade policies in determining access to international markets.
