Local manufacturing key to Africa’s growth – Industry PS Mukhwana
By Faith Lagat, October 6, 2025Juma Mukhwana, Kenya’s Principal Secretary for Industry, has emphasised the pivotal role of local manufacturing in driving economic growth across Africa.
Speaking on a local TV station on October 6, 2025, Mukhwana urged African nations to prioritise investment in their own industries, highlighting the continent’s tendency to export raw materials while importing finished goods at higher costs.
“As a continent, it is time we invest in growing our own industries. Often, we export raw materials like hides, then buy finished products like shoes and bags at much higher prices,” he said, underscoring the importance of value addition within Africa.
Private sector leadership
Mukhwana noted that industrial development discussions often focus on closed factories rather than recognizing new enterprises being established. “Often, we focus on closed industries instead of recognising the new ones being opened. Every day, between six to ten companies are started here in Kenya,” he said.
He stressed that the private sector should lead industrial advancement, as businesses are best positioned to identify market opportunities and understand market dynamics. “Industrial development should be led by the private sector, as they are in the best position to identify market opportunities and understand how those markets work,” Mukhwana explained.
The PS also highlighted the challenge of limited private investment in Kenya’s industrial sector. “The lack of private investors in the industrial sector is one of the main reasons we lag behind in development. In the United States, Americans invest in industries; in China, it’s the Chinese themselves. But here in Kenya, people board planes to Europe to seek investors instead of investing in their own country,” he said.
Trade gaps and industrial transformation
Mukhwana drew historical comparisons to illustrate Africa’s industrial gap with developed nations. “European countries are considered first-world nations because they heavily invested in the Industrial Revolution. They are currently in the fourth industrial revolution, which began around 1740, while we in Africa have not fully entered even the first,” he said, emphasising the need for industrial transformation.
He also addressed the low level of intra-African trade as a barrier to growth. “The problem we have in Africa is that intra-Africa trade is only 15%. This means that when Kenya trades with countries like Nigeria or South Africa, the level is just 15%, which is very low. 85% of the goods we use are ordered from outside the continent.
This situation is dangerous because the profits remain in those countries,” Mukhwana warned, advocating for stronger regional trade to retain economic benefits within Africa.