Bank CEO urges Africa to embrace value-added exports
By Taiye Olayemi
Mr Paul Abiagam, Chief Executive Officer (CEO) of Coronation Merchant Bank, has urged African nations to prioritise value-added products over raw material exports for continental economic growth.
Abiagam made the call in an interview with the News Agency of Nigeria (NAN) on Monday in Lagos.
He stated that Africa must strategically leverage partnerships and patient capital to drive development.
Abiagam emphasised the need for African countries to develop industrial policies that promote value addition, deepen capital markets, and attract aligned partnerships.
Citing examples from Côte d’Ivoire, Ghana, Benin, and Ethiopia, the expert highlighted successful initiatives that incentivise local processing and manufacturing, creating jobs and stabilising foreign exchange reserves.
He added, “Consider the cocoa sector, Côte d’Ivoire and Ghana, long known for exporting raw cocoa, are now advancing policies to incentivise local processing and manufacturing.
“Their objective is clear, which is transitioning from commodity exporters to value creators. These governments are compelling corporates to move further down the value chain to increase export revenues, create jobs, and stabilise forex reserves.
“This is not theory, it is economics. Processing cocoa at source retains more value and catalyses inclusive markets with significantly higher earnings potential.
“The Republic of Benin offers another example. Once primarily an exporter of raw cashew nuts to Vietnam, it is now taking decisive steps to process cashews locally.
“In Ethiopia, an ambitious industrial policy is positioning the country as a regional manufacturing hub, these are not isolated cases. They are signals of what is possible when policy, capital, and corporate resolve align.”
The CEO noted that in spite these strides, African countries continue to pay disproportionately high premiums to access capital.
Abiagam said that the challenges in accessing capital are due to high-risk premiums, macroeconomic volatility, and currency fluctuations.
He noted that African must realise that the cost of capital remains a stubborn barrier to industrialisation.
To address this, the expert advocated a new financial realism, anchored in value addition, strategic industrial hubs, and nuanced understanding of African markets.
He said that Africa could become a factory floor, processing powerhouse, and digital engine, but requires confidence, competence, and strategic partnerships to unlock its potential. (NAN) (www.nannews.ng)
Edited by Olawunmi Ashafa
