President of the African Development Bank (AfDB), Dr. Akinwumi Adesina, has strongly criticized Africa’s continued reliance on exporting raw materials, calling it the core reason the continent remains economically disadvantaged and why Africa is trapped in poverty.
In a post on his X page on Thursday, Adesina declared that “the export of raw materials is the door to poverty,” emphasizing that Africa’s failure to process and add value to its vast natural resources is stunting growth and long-term development.
“The future of Africa will not be determined by what we export raw, but by what we finish, process, and own,” he said.
Adesina warned that unless the continent breaks away from the extractive economic model, the cycle of poverty will persist for generations. He stressed the need for investment in manufacturing, processing, and innovation to unlock inclusive economic growth.
Explaining more underpinning factors as to why Africa is trapped in poverty, Adesina insisted that “We must end Africa’s industrialization by substitution,” adding that “the continent cannot afford to be the raw material basket of the world. It’s time for Africa to manufacture, to process, and to lead.”
According to the AfDB president, Africa accounts for only 2% of global manufacturing output despite possessing about 30% of the world’s known mineral reserves. This paradox, he said, has perpetuated dependency and underdevelopment.
“We export jobs when we export raw materials,” Adesina said. “What we need is to create value chains that keep wealth within Africa and empower our people.”
Dr. Adesina urged policymakers to rethink priorities and adopt bold reforms that encourage domestic production and trade across borders. He highlighted the importance of reliable infrastructure, energy access, skilled labor, and supportive policy environments for entrepreneurs and manufacturers.
“We cannot talk about Africa’s transformation without transforming what we produce and how we produce it,” he stressed. “We must stop being exporters of poverty and start becoming creators of prosperity.”
The AfDB, under Adesina’s leadership, has launched several initiatives aimed at industrialization, including the “Industrialize Africa” strategy, investments in Special Economic Zones, and financing for small and medium-sized enterprises across the continent.
Background
Africa’s reliance on raw commodity exports is rooted in its colonial past, when European powers built infrastructure and trade systems around the extraction of resources rather than value creation. Even after independence, many African countries inherited and maintained economic structures that favored foreign industries and discouraged domestic industrialization.
Despite being rich in oil, gold, cocoa, copper, and other key exports, African nations remain vulnerable to global price shocks and external demand fluctuations—problems exacerbated by limited local processing capacity, something that is at the core of why Africa is trapped in poverty.
Over the years, initiatives such as NEPAD (New Partnership for Africa’s Development), Agenda 2063, and the African Continental Free Trade Area (AfCFTA) have attempted to chart a path toward greater self-reliance and industrial development. However, progress has been uneven, with many countries still dependent on raw exports for the bulk of their national income.
