African countries losing jobs, skills through raw resource exports – Abdul Samad Rabiu
The founder of BUA Group, Abdul Samad Rabiu, has said African nations must rethink how they manage their natural resources to curb job losses and strengthen economic resilience.
Speaking at the Africa CEO Forum in Kigali on Thursday, Rabiu said countries outside Africa often gain more value from the continent’s raw materials because they process them into finished products.
He stressed the need for value addition, noting that Africa continues to export unprocessed resources, along with employment opportunities, technical expertise, and economic benefits that should remain within the continent.
According to him, Africa possesses more than 20 percent of the world’s iron ore reserves, with some of the highest-quality deposits globally, yet exports the raw mineral instead of producing steel locally.
Rabiu questioned why African nations export crude oil rather than using it to power industrial growth, insisting that industrialisation is now a necessity rather than an aspiration.
Using Nigeria as an example, he cited the country’s transformation in cement production, saying deliberate government policies and sustained investment turned Nigeria from a major importer into a net exporter.
He explained that about 15 to 20 years ago, Nigeria imported over 90 percent of the cement it consumed, but now produces more than 50 million tonnes annually, with an installed capacity exceeding 65 million tonnes.
Rabiu also argued that recent disruptions in global energy and supply chains have shown that countries with domestic processing capabilities are better positioned to withstand economic shocks.
Referencing tensions in the Middle East, he said the situation highlights the importance of local production and self-sufficiency.
He added that Nigeria’s expanding refining capacity is helping to improve energy security while contributing to supply stability in parts of Africa.
On cocoa production, Rabiu noted that although several African countries produce the bulk of the world’s cocoa, the continent earns only a small share of the over $200 billion global market linked to the commodity.
He said Africa’s challenge is not a lack of ambition but weak coordination in executing large-scale economic strategies, adding that the continent must begin to grow as an integrated economic system.
