Africa has been urged to transform its economic model by moving away from exporting raw materials and importing finished products, with Industry Principal Secretary Dr Juma Mukhwana calling for greater investment in local manufacturing, innovation and industrial development.The call was made during the opening of the fifth KCA University Innovation Week and Industry Summit at the university's Ruaraka campus in Nairobi on October 27, 2026. Dr Mukhwana and Bidco Africa Chairman Vimal Shah challenged African countries to turn their natural resources, research and human talent into finished products that can compete in domestic, regional and international markets.

The discussions highlighted the importance of strengthening the connection between universities and industries, enabling young innovators to develop commercially viable products, establish businesses and contribute to job creation.

Dr Mukhwana's message reflects a wider industrialisation agenda: Africa should not simply supply the materials that other countries use to build their economies. Instead, the continent should develop the factories, technologies, skilled workforce and businesses needed to process its resources and retain more economic benefits at home.For decades, many African economies have relied heavily on exporting agricultural commodities, minerals and other natural resources. Although these exports generate foreign exchange, countries can miss significant economic opportunities when they sell their resources without processing them locally.

In his industrialisation advocacy, Dr Mukhwana has repeatedly questioned an economic model in which African countries export raw commodities and subsequently import expensive finished goods made from those same resources.

For example, a country may export raw cotton and later import clothes manufactured abroad from cotton. Similarly, it may export hides and skins before importing finished shoes, handbags and other leather products.The same pattern can occur in agriculture, where farmers produce tea, coffee, fruits, vegetables and other commodities, but a substantial portion of the processing, packaging and branding takes place elsewhere.

This arrangement means that the country producing the original material may receive only part of the potential economic value. The countries that process, manufacture, package and market the final products can earn additional revenue and create employment across several stages of production.

Dr Mukhwana's argument is that African nations must deliberately build industries that transform locally available resources into goods that people need and businesses can sell.Dr Mukhwana challenged universities to produce graduates who can establish businesses, develop new technologies and create industries instead of concentrating solely on preparing students to seek employment.

According to a report he called for stronger partnerships between research institutions, manufacturers and investors to ensure that discoveries made in laboratories and classrooms become commercially viable products.

The challenge is particularly important because African universities produce graduates in engineering, agriculture, information technology, business, chemistry and other fields that can support industrial development.Africa's population represents an important market for locally manufactured products. The continent has millions of households that require food, clothes, furniture, construction materials, household equipment, medicines and other essential goods.

Yet, according to the report on the KCA University summit, Africa has a population of approximately 1.4 billion people but accounts for only about three per cent of global manufacturing.

This contrast highlights the opportunity for African countries to expand production and meet a larger share of their own demand.

Instead of importing almost every category of finished product, countries can establish factories that produce goods suited to local needs and purchasing power.Another important part of Kenya's industrialisation strategy is the development of County Aggregation and Industrial Parks, commonly known as CAIPs.

These facilities are intended to support the processing of agricultural produce and other locally available raw materials, while encouraging industrial investment beyond Nairobi and its surrounding areas.

The Government Advertising Agency reported on October 21 that 34 county industrial park projects had been initiated, with 15 completed and the remaining projects at different stages of implementation.

The parks could provide opportunities for entrepreneurs who might otherwise struggle to establish processing facilities independently.Manufacturing can create employment for young people

Job creation is among the strongest arguments for Africa to expand its manufacturing capacity.

When a country exports raw materials and imports finished products, some of the jobs associated with processing and manufacturing are created abroad.

When production takes place locally, more employment opportunities can become available within the domestic economy.

Factories require workers to operate machinery, inspect products, maintain equipment, manage inventory and transport finished goods. They also need professionals in engineering, finance, information technology and business administration.Africa must invest in technology and innovation

Manufacturing in the modern economy requires more than physical factories. It increasingly depends on technology, research, efficient production systems and the ability to develop new products.

African countries must therefore invest in scientific research, engineering, digital technologies and technical education if they want their industries to compete internationally.

The KCA University summit showcased innovations including biodegradable diapers, remote equipment-monitoring technology, a space-tracking platform and an artificial intelligence-based business risk assessment tool.The challenges facing Africa's industrialisation drive

Despite the opportunities, building competitive manufacturing industries across Africa will require governments and businesses to address several challenges.

High production costs: Expensive electricity, financing and transportation can make locally manufactured goods more costly than imported alternatives. Limited access to capital: Small and medium-sized enterprises may struggle to secure the funding needed to purchase machinery, establish factories and expand production.

Infrastructure gaps: Some areas lack reliable power, modern roads, suitable industrial facilities and efficient logistics systems.

Skills shortages: Manufacturers need trained technicians, engineers and workers capable of operating increasingly sophisticated equipment.

Market access: Businesses must develop products that meet consumer needs and comply with standards in domestic and export markets.

Competition from imports: Local manufacturers must compete with established foreign producers, some of which benefit from larger production volumes and developed supply chains.They can also help local manufacturers access markets through regional trade agreements and measures that promote fair competition.

Consumers have a role to play as well. Purchasing locally manufactured products can support domestic businesses, provided those products meet appropriate quality and safety standards and offer good value.

Public institutions can also create opportunities for local manufacturers through transparent procurement processes that comply with applicable laws and procurement requirements.

At the same time, businesses must earn consumer confidence by consistently supplying reliable products at competitive prices. People should not be expected to purchase inferior goods simply because they are locally produced.