By zainab.joaque@awokonewspapersl.com
Abuja, Nigeria – July 1, 2025 – Africa stands on the brink of a powerful economic transformation, and at the forefront of this movement is Arise Integrated Industrial Platforms (Arise IIP), a pioneering initiative determined to shift the continent from an exporter of raw materials to a global manufacturing hub. At the 32nd Annual Meeting of the African Export-Import Bank (Afreximbank) in Abuja, Arise IIP’s Founder and Chairman, Gagan Gupta, delivered an impassioned keynote address, unveiling a roadmap to industrialize Africa through value addition, localized processing, and bold economic reforms.
Gupta began by highlighting the long-standing issue of Africa’s overreliance on raw material exports, a trend that has drained the continent of both wealth and opportunity. He pointed to Gabon as a shining example of what’s possible when African countries take control of their resources. “For decades, Gabon exported raw timber directly to China and elsewhere,” Gupta said. “Today, it no longer exports raw logs—only processed veneer—and the value created has skyrocketed.” This transformation was made possible through the establishment of Gabon’s Special Economic Zone, one of several Arise IIP-led industrial zones across Africa, including in Benin, Togo, Côte d’Ivoire, and Chad.
Illustrating the economic losses tied to Africa’s reliance on imports, Gupta spoke about a once-thriving textile mill in Kano, Nigeria, which employed more than 50,000 workers in the 1970s but now sits mostly idle. He noted that Nigeria currently imports around $5 billion worth of textiles annually, essentially exporting over half a million potential jobs. Across the continent, textile imports total $48 billion, a staggering figure that reflects missed opportunities for local manufacturing, job creation, and economic growth. “This isn’t just a textile story,” he emphasized. “It’s the same tale with cotton, rubber, minerals, and more. While the rest of the world adds value and builds wealth, Africa remains stuck exporting raw products.”
Gupta outlined several deep-rooted barriers stifling Africa’s industrialization, including inadequate policy frameworks, insufficient infrastructure such as electricity and water, a lack of skilled workers, poor access to local financing, unreliable supply chains, and high capital costs. He also pointed to policy missteps that actively discourage local production, such as lower import duties on fully assembled goods compared to components. “This kind of policy kills domestic manufacturing before it even begins,” he said.
To address these challenges, Arise IIP has developed a four-pronged strategy in collaboration with Afreximbank and the Africa Finance Corporation. The first is the creation of specialized industrial zones tailored to local needs, complete with modern infrastructure, supportive regulations, and workforce training. In Benin, for instance, Arise trained 10,000 garment workers before the first factory even opened its doors. The second strategy involves the Africa Trading Distribution Company, which is designed to facilitate intra-African trade by linking producers to markets, helping move processed goods like soya from Togo to Ghana and Senegal while minimizing currency risks and streamlining capital cycles.
The third initiative is Africa Mineral Metal Processing (A2MP), which promotes the local processing of minerals such as bauxite, silica, and magnesite to retain more value within the continent. Gupta highlighted Gabon’s recent decision to ban raw magnesite exports, projecting that this move alone could raise export revenues from $1.5 billion to $8.8 billion and create up to 56,000 new jobs. However, it would require 2 GW of energy—an immense opportunity for power sector investment. The fourth platform is Spiro, Arise’s e-mobility venture that promotes the use of electric vehicles powered by solar energy. “E-bikes cost 30 to 40 percent less to operate than petrol taxis,” Gupta said. “Switching from fuel imports to electric mobility could save $18 billion annually and support the growth of 75,000 entrepreneurs.”
While outlining Arise’s achievements, Gupta made it clear that the platform’s success is the result of strong partnerships. He praised institutions like Afreximbank, the Africa Finance Corporation, and progressive governments across the continent for supporting public-private collaborations that enable these industrial zones to thrive. He urged African leaders, investors, and citizens alike to play their part in this transformation. “Ask yourself: how often do you buy products that are made in Africa?” he challenged. “If we truly want industrialization, we must commit to supporting African-made goods—by wearing them, promoting them, and investing in them.”
He emphasized the need to mobilize local capital, create effective policy frameworks, and implement scalable, bankable projects. Policymakers, he said, must have the courage to take bold steps—such as banning raw material exports—to protect and nurture domestic industries. “We already have 14 industrial zones ready for investment,” Gupta said. “The markets are there. The vision is clear. Now, we need to act.”
Through its integrated, solutions-driven approach, Arise IIP is laying the foundation for a new economic era—one where Africa no longer stands on the sidelines of global industry but takes center stage. With value addition, skills development, and sustainable innovation at its core, Arise IIP is not just building factories—it is building the future of Africa. ZIJ/1/7/2025
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