Ugandan President Yoweri Museveni has spoken out against Africa's continued export of unprocessed raw materials, a practice he believes has hindered the continent's economic growth and job creation. On September 30, 2026, Museveni addressed an event in Nairobi, where he expressed his satisfaction with the trend of African countries beginning to add value to their exports. He emphasized that this shift is crucial for the continent's economic development.
Museveni used the example of coffee to illustrate the economic benefits of processing raw materials locally. He noted that a kilogram of coffee beans could earn about $2 after husking, but when roasted, ground, and packaged, it could fetch around $40. This significant increase in value highlights the potential for African countries to boost their earnings by investing in local processing and manufacturing.
The Ugandan President also cited the mineral sector as an area where Africa could benefit from value addition. He compared the export of gold at 86 percent purity, which earns around $60,000 per kilogram, to processed gold at 99 percent purity, which could fetch about $173,000 per kilogram. This disparity demonstrates the substantial income losses Africa incurs by exporting commodities before processing them.
Museveni linked the lack of industrial processing in Africa to high unemployment rates. Using cotton as an example, he explained how value addition could create multiple job opportunities at various stages, including growing, ginning, spinning, weaving, and printing. He noted that cotton has seven levels of job creation, but many of these opportunities are being realized outside Africa due to a lack of local processing.
The consequences of Africa's dependence on raw-material exports are reflected in the continent's economic performance, according to Museveni. He compared Africa's combined GDP to that of the United States and South Korea, highlighting the significant economic disparities. Museveni's comments underscore the need for African countries to rethink their export strategies and prioritize value addition.
Museveni's call for Africa to shift from exporting raw materials to processing and adding value locally resonated with attendees at the Nairobi event. His remarks align with a growing recognition among African leaders and policymakers of the need to diversify and industrialize their economies. By investing in local processing and manufacturing, African countries can create jobs, boost earnings, and drive sustainable economic growth.
As African countries seek to address their economic challenges, Museveni's message serves as a reminder of the importance of value addition in achieving sustainable development. By prioritizing local processing and manufacturing, the continent can unlock new economic opportunities, reduce its dependence on raw-material exports, and build stronger, more resilient economies.
Key points
- Africa's export of unprocessed raw materials has denied the continent jobs, income, and opportunities to build stronger economies.
- Processing raw materials locally can significantly increase earnings, as illustrated by the example of coffee, which can earn $2 per kilogram after husking but $40 per kilogram when roasted, ground, and packaged.
- The lack of industrial processing in Africa has contributed to high unemployment rates, with many job opportunities being created outside the continent due to a lack of local processing.
