African Content: A playbook for continental emancipation
Africa is a continent with vast potential for economic development, but for far too long, it has been held back by a reliance on the extraction and export of raw materials without adding value locally. This has resulted in a lack of local production capacity and a failure to fully realise the continent’s economic potential.
In order to build Africa’s local production capacity and develop its economy, it is essential to adopt a multifaceted approach that includes promoting local content in key industries and increasing cooperation on a continental level.
One example of a country that has made progress in this regard is Nigeria, which has implemented the Nigerian Oil and Gas Industry Content Development (NOGICD) Act to enable the development of local content in the oil and gas industry. Prior to the act, the industry was dominated by foreign players, but the government agency responsible for promoting local content, the Nigerian Content Development and Monitoring Board (NCDMB), has exceeded expectations in increasing the capacity of local players in the industry. This shows that Nigeria has the potential to manage its own natural resources efficiently, and it is important to replicate this success across the continent.
To truly realise the benefits of local production capacity, it is necessary to promote local content not just at the national level, but also on a continental level. This can be achieved through increased cooperation under the African Continental Free Trade Area Agreement, which would allow African countries to benefit from the collective bargaining power of the continent and build local production capacity in a more coordinated way.
Another important step in building Africa’s local production capacity and developing its economy is to increase the value of its minerals and reduce the billions of dollars in proceeds that are currently lost to foreign companies. Zimbabwe is one example of a country that has taken this approach, banning the export of raw lithium in an effort to increase the value of its minerals and reduce the billions of dollars in proceeds it loses to foreign companies.
While there are challenges to overcome, such as a lack of infrastructure to facilitate production or processing, this policy has the potential to help Zimbabwe become one of the world’s largest lithium exporters and meet 20% of the world’s total demand for the mineral.
In summary, building local production capacity and developing the economy in Africa requires a comprehensive approach that includes promoting local content in key industries, increasing cooperation on a continental level, and taking steps to increase the value of minerals.
While there are challenges to overcome, the potential for economic development in Africa is vast, and with the right policies in place, the continent can achieve its full potential.
