Fix Power, Cheaper Finance, Logistics For Africa To Industrialise, Pan-African Manufacturers Urge
A Pan-African Manufacturers Association survey identifies power shortages, high credit costs, and poor logistics as the primary barriers to industrial growth in Africa. Manufacturers suggest that stable policy and infrastructure investment are essential for regional competitiveness.
Why it matters
Addressing these structural economic bottlenecks is critical for the success of the African Continental Free Trade Area (AfCFTA) and long-term industrialization.
Power shortfalls, expensive credit and poor logistics are hampering African manufacturers’ efforts to compete, a new Pan-African Manufacturers Association (PAMA) survey shows.
The PAMA Industry Pulse Survey of more than 100 manufacturers found electricity outages, rising cost of borrowing and weak transport networks consistently ranked as the top constraints to competitiveness. Yet manufacturers remain cautiously optimistic about the third quarter, citing improving supply chains, growing intra‑African trade under the AfCFTA and easing global energy prices.
Still, firms say stronger industrial performance will need stable policy, better infrastructure and cheaper finance. The survey covered sectors from agro‑processing and brewing to pharmaceuticals and banking, and found operating costs for many businesses have more than doubled as unreliable power forces heavy use of generators and alternative fuels.
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