Chic African Culture Africa Factbook

Africa is Working for Free

Most value added manufacturing contracts have no monetary value to Africa and enables the keep Africa poor and backwards business model.

Africa is blessed with natural resources, so what? 

Manufacturing industries are used to measure growth and structure, if the cost of goods and materials is more than the cost of the final manufactured product then the product is of no value to Africa and it is giving away products for free.

Africa is the richest continent on the planet remarkable for her rich soil, abundant land, forests and trees, oil, minerals, precious stones and metals, water, and wildlife. 

Yet Africa remains poor because of a lack of value added manufacturing sectors on the African continent. Africa has an average of 12.7 percent value-added manufacturing.

Africa has an average 12.7 percent value-added manufacturing GDP; Algeria has the highest at 24.2% Sierra Leone 1.6% value added manufacturing.

Sewing and textile manufacturing plant in Ethiopia

Algeria has the highest at 24.2 percent in 2019 while Liberia and Sierra Leone are the lowest on the African continent with 1.6 percent, however, 16 out of 54 African countries have no data on value added manufacturing income made.

Picking coffee berries in Ethiopia with little value added manufacturing companies.

The definition of manufacturing is any industry that makes products from raw materials by the use of manual labor or machinery. 

Value-added manufacturing is the gross receipts minus the cost of goods and services purchased from other companies, the difference between the value of goods and the cost of materials or supplies that are used in producing them. 

If the cost of goods and the cost of materials or supplies is more than the cost of the final manufactured product then the product is of no value to Africa.

Africa does not benefit from the processing and manufacturing portion of goods such as coffee beans, timber and cut flowers, only the agricultural. Under development has held most of Africa backwards because African countries are unable to add value to raw materials so Africans can sell on local and international markets and negotiate prices and trade rules favorable to the citizens of Africa.

Africa has an average of only 12.7 percent value-added manufacturing; Algeria has the highest at 24.2 percent in 2019 while Liberia and Sierra Leone are the lowest on the African continent with 1.6 percent. The manufacturing industry plays a big role in boosting a country’s economy. 

Here are some of the reasons why manufacturing is important to a country as well as its economy; commercial innovation, creation of job opportunities, manufacturing industries help to support other companies; manufacturing companies promote trading in a country, and adds value to the economy of a country.

A solution to the value added manufacturing issues for Africa is for the African Diaspora to seriously invest in the manufacturing industries and firms that would make the greatest contribution to Africa. 

These have the greatest potential to maintain or expand employment in Africa which are the industries of computers and electronics, chemicals, pharmaceuticals, transportation and machinery, manufacturing provides high-wage jobs, especially for workers who would otherwise earn the lowest wages.

The manufacturing industry plays a big role in boosting a country’s economy. Remember, the difference between the value of goods and the cost of materials or supplies that are used in producing is the value-added manufacturing cost.

Manufacturing value added percent of GDP for Africa 2017-2019

Country Name 2017 2018 2019
Algeria 24 27 24
Angola 6 6 no data
Benin 9 9 9
Botswana 5 5 5
Burkina Faso 10 9 9
Burundi no data no data no data
Cabo Verde 6 6 6
Cameroon 15 18 no data
Central African Republic 18 18 18
Chad 2 2. 2.8
Dem. Rep. of the Congo 19 18 20
Rep. of the Congo 6.3 no data no data
Cote d'Ivoire 10.1 11.1 11.5
Djibouti 3 3 3
Egypt 16.4 16.1 15.9
Equatorial Guinea 25.7 25.3 19.5
Eritrea no data no data no data
Eswatini 29.5 28.8 29.3
Ethiopia 6.1 5.8 5.5
Gabon 17.6 19.0 19
The Gambia 4.4 4.4 4.3
Ghana 10.4 10.4 10.4
Guinea 10 9.4 no data
Guinea-Bissau 10.5 10.4 no data
Kenya 8 7.7 7.5
Lesotho 15 16.2 15.9
Liberia 1.8 1.7 1.6
Libya no data no data no data
Madagascar no data no data no data
Malawi 9.3 no data no data
Mali 2.3 2.7 3
Mauritania 7.7 7.8 no data
Mauritius 11.8 11.3 11
Morocco 15.6 15.7 no data
Mozambique 8.1 8.8 no data
Namibia 11.9 12 11.7
Niger 6.6 6.2 6.1
Nigeria 8.7 9.6 11.5
Rwanda 7.6 7.5 8.1
Sao Tome and Principe 7.2 7.4 no data
Senegal 15.8 15.7 15.6
Seychelles 5.9 6.7 6.1
Sierra Leone 1.9 2.1 1.9
Somalia no data no data no data
South Africa 12. 11.7 11.7
South Sudan no data no data no data
Sudan 6.8 12.9 11.7
Tanzania 7.6 no data no data
Togo 6.5 6 6.5
Tunisia 14.7 14.3 no data
Uganda 15.5 15.8 15.4
Zambia 8.1 7.7 no data
Zimbabwe 11 10.5 no data


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