How value chains hold the key to unlocking Africa’s development potential

Africa’s vast natural wealth has yet to translate into broad‑based economic development, with persistent gaps in jobs, industrialization, and incomes. According to Islam Swaleh, head of entrepreneurship and investment at the African Union Commission, the continent’s central challenge lies in “weak integration of resources into inclusive value chains.”

The Value‑Chain Barrier

Swaleh highlighted that smallholder farmers often lack finance, technology, and market access, while mineral resources are frequently exported raw rather than processed locally. To address this, the AU is promoting initiatives like the African Inclusive Markets Excellence Center, which connects small enterprises and women‑led businesses to value chains, and the AU Mineral Development Strategy, which focuses on local processing to support industries such as batteries, solar energy, and electronics.

Overcoming Structural Challenges

Africa faces significant hurdles, including infrastructure deficits, regulatory inconsistencies, currency volatility, and rising debt—which exceeds 60% of GDP in some countries. Swaleh pointed to ongoing policy reforms aimed at improving predictability and investor confidence, along with AU‑backed efforts in debt restructuring, domestic resource mobilization, and financing tied to industrialization and value addition.

The Role of AfCFTA and Foreign Investment

The African Continental Free Trade Area (AfCFTA) is already reshaping business behavior by encouraging firms to scale production for regional markets, invest in logistics and processing, and reduce inefficiencies. Swaleh noted AfCFTA could lift 30 million people out of extreme poverty and boost Africa’s income by $450 billion by 2035. To attract foreign investment, the AU’s Strategy for Quality and Sustainable Investment aims to address macroeconomic risks, infrastructure gaps, and regulatory fragmentation.

A Call for Global Fairness

At the global level, Swaleh emphasized that Africa must advocate for fair trade rules, debt‑restructuring mechanisms, and access to long‑term development finance. By building resilient, integrated economies and adding value to its agriculture and minerals, Africa can secure a more equitable position in the world economy.