Founder and Executive Chairman of BUA Group, Abdul Samad Rabiu, has urged African countries to prioritise industrial processing and value addition rather than exporting raw materials.
Rabiu made the call while speaking as Special Guest of Honour at an Africa Finance Corporation, AFC, forum during Mining Indaba 2026. The event brought together African leaders, policymakers, financiers and industry executives to deliberate on the future of mining, industrialisation and real sector development on the continent.
According to a statement issued on Tuesday, Rabiu commended the AFC for mobilising long-term capital for industrial projects across Africa. He noted that the corporation’s recent S&P Global rating with a positive outlook reflects the critical role of strong development finance institutions, DFIs, in driving Africa’s economic growth.
Drawing from BUA’s experience, Rabiu recalled that over 16 years ago, the company took a strategic decision to move from cement importation to local production in Nigeria, despite the high capital requirements and long gestation periods associated with mining and heavy industry.
“At the time, Nigeria was importing cement despite being richly endowed with limestone,” Rabiu said.
“We were spending more time chasing foreign exchange than selling cement. The real question was not whether the resources existed, but whether there was enough conviction to stop importing and start producing locally.”
He disclosed that BUA currently mines and processes about 40,000 tonnes of limestone daily, producing approximately one million tonnes of cement monthly. He added that the shift to local production has helped Nigeria transition from a cement-importing nation to a net exporter, saving billions of dollars in foreign exchange annually.
Rabiu emphasised that the transformation was made possible through patient, long-term financing from DFIs, particularly the AFC, which has supported BUA’s cement and industrial operations with over $400 million in funding.
He noted that a significant portion of the facilities has already been repaid, demonstrating that properly structured African industrial projects are commercially viable and capable of recycling capital.
Speaking on the broader African context, Rabiu described it as a “structural paradox” that the continent remains one of the most resource-rich regions globally, yet exports most of its minerals and agricultural produce in raw or minimally processed form.
He cited commodities such as gold, cobalt, copper, iron ore, diamonds and cocoa, noting that while Africa supplies a large share of global raw materials, it captures only a small fraction of the value generated downstream.
“Africa does not lack resources. What it lacks is processing capacity, industrial scale and disciplined execution,” he said.
He added that the same challenge exists in agriculture, where Africa possesses a significant share of the world’s arable land but continues to spend billions of dollars annually on food imports.
Rabiu called for coordinated efforts among governments, DFIs and the private sector to drive beneficiation and industrial value chains. He urged DFIs to expand long-term financing for large-scale industrial projects, while governments should implement deliberate policies that encourage local processing and invest in power, transportation and industrial infrastructure.
“Industrialisation does not happen by accident. Countries that industrialised did so by design, not by chance. Africa must do the same,” he stated.
