President Mahama Calls for End to Raw Material Exports
President John Dramani Mahama has called on African countries to end the export of raw materials, emphasizing that the practice undermines industrialization, job creation, and economic transformation. Speaking at the Africa Trade Summit, he stressed that Africa’s reliance on primary commodity exports has perpetuated dependency and denied the continent full benefits from its natural resources.
The President highlighted cocoa production as a prime example of global trade imbalance, noting that despite Africa producing most of the world’s cocoa, it earns only a small share of the global chocolate market. “Value addition and beneficiation are critical to reversing these imbalances and driving inclusive growth across the continent,” he emphasized.
The Consequences of Exporting Raw Materials:
Job Losses: Africa misses out on millions of potential jobs due to lack of value addition.
Revenue Shortfalls: The continent loses significant revenue opportunities from unprocessed commodity exports.
Limited Economic Transformation: Africa’s economies remain dependent on primary commodities, hindering diversification.
President Mahama pointed to Ghana’s Ghana Goldbod initiative as a model for strengthening control over natural resources. The initiative has improved foreign exchange inflows and transparency, particularly in the small-scale mining sector. In 2024, Ghana projected 63 tonnes of gold exports from small-scale mining but faced challenges in receiving full foreign exchange proceeds.
“Africa must take control of its resources and prioritize value addition,” President Mahama urged. He called on African leaders to work towards creating an enabling environment for local processing and manufacturing, adding that this would unlock new opportunities for job creation, revenue growth, and sustainable development.
The President’s call to action echoes growing concerns about Africa’s trade dynamics. With many African countries heavily reliant on raw material exports, experts say diversifying economies and boosting value addition are key to achieving sustainable growth.
Ghana’s experience with the Ghana Goldbod initiative offers valuable lessons for other African countries seeking to maximize benefits from their natural resources. As the continent navigates global trade challenges, stakeholders say prioritizing value addition and industrialization will be crucial for Africa’s economic future.
