Insecurity threatens Africa’s industrial growth – PAMA

• Published On: 01 March 2025 at 21:10

The Pan-African Manufacturers Association has identified persistent insecurity as a significant threat to Africa's manufacturing sector growth.

In its February newsletter, PAMA's report, "The Shadow of Insecurity: A Threat to Africa's Manufacturing Sector," identifies violent insurgencies, political instability, and armed conflicts as key barriers to industrial development and investor confidence.

PAMA warned that ongoing conflicts across Africa are stifling industrial output and discouraging investment.

PAMA urged immediate action to strengthen security institutions, rebuild infrastructure, and provide financial assistance to struggling manufacturers.

"Rising insecurity in Africa continues to stifle manufacturing. Violent insurgencies, armed conflicts, and political instability have reduced industrial output and investor confidence, according to the report.

PAMA identified major conflicts impeding African industrial growth, including the conflict between the DRC Army and the Rwanda-backed M23, as well as insurgencies in Sudan and South Sudan.

It stated that the conflict in the Democratic Republic of the Congo has severely disrupted mineral processing, a sector critical to global technology supply chains, jeopardizing Africa's position as a key raw material supplier.

PAMA also stated that Sudan's soaring inflation rate—145.14% as of January 2025—is exacerbating economic decline and stalling industrial growth.

The organization urged African governments and regional blocs to prioritize security, increase economic resilience, and stabilize key industrial hubs through targeted policies.

"This edition sheds light on the alarming impact of insecurity on manufacturing and calls for urgent and coordinated responses including strengthening security institutions, rebuilding infrastructure, and deploying financial safety nets for manufacturers to stabilize Africa's industrial hubs," according to the report.