Africa Needs Cheaper Credit To Power Manufacturing — BoI MD

The managing director of the Bank of Industry (BoI), Dr. Olasupo Olusi, has urged African governments, development finance institutions and the private sector to take deliberate, coordinated action to unlock the continent’s industrial potential, saying access to affordable, long-term credit is the “oxygen of industrialisation.”

Delivering a lecture titled: “Optimising capacity for industrialisation and socio-economic development in Africa” at the inauguration of Course 34 of the National Defence College in Abuja on Thursday, Olusi said the continent has the talent and resources to achieve rapid, sustainable industrial growth — but only if policymakers abandon passivity and embrace a methodical strategy.

“Africa’s industrial journey is not a matter of chance, but of deliberate choice,” he said, setting out a five-point pathway to transformation: infrastructure and energy reform; access to affordable long-term finance; investment in human capital; regional value-chain integration; and strong institutional coordination.

“Industrialisation is not a miracle; it is a method,” Olusi said. “Progress is cumulative, not spontaneous. If we execute with patience, precision, and persistence, Africa can move from a continent that consumes to one that produces and protects itself.”

Olusi described the present period as a defining window of opportunity. Global disruptions — from the green transition and new technologies to shifting trade patterns — create space for Africa to reimagine an economic model rooted in self-reliance and innovation. But he warned that chronic deficits in power, transport and logistics risk turning opportunity into missed promise unless tackled strategically.

Citing the International Energy Agency, Olusi said Africa will need about $25 billion annually until 2030 to close the electricity access gap ,  an investment he said is essential to slash industrial costs and raise productivity. He highlighted major regional projects such as the Lagos–Abidjan Highway and the Trans-Saharan Trade Route as critical connectors that would link industrial and agricultural clusters, reduce freight costs and facilitate intra-African trade.

“Roads, railways, and power lines are not merely infrastructure,  they are instruments of sovereignty. But beyond infrastructure, we must invest in people – engineers, machinists, and innovators — who will drive Africa’s next industrial revolution, “he declared.

He also argued that high interest rates and short tenors continue to choke manufacturers, and that development finance institutions (DFIs) such as BoI must step up to provide patient, long-term capital for strategic sectors — manufacturing, renewable energy, and technology.

“The Bank of Industry continues to raise capital through debt instruments, syndicated loans, and green financing to support productive enterprises.Our aim is to make every dollar of public capital count — driving impact, sustainability, and profitability,” he stated.

He also flagged diaspora remittances estimated at more than $100 billion annually as an underused source of industrial finance. Redirecting a portion of these flows toward productive investments, he argued, could complement public and private capital and help close funding gaps.

Olusi stressed human capital as Africa’s decisive advantage but warned that current skills pipelines are inadequate. “Africa has over 60 per cent of its population under the age of 25, yet fewer than ten percent receive vocational or technical training. We must move from degree-oriented education to skills-driven learning that connects classrooms to factory floors,” he said.

He cited burgeoning innovation hubs in Nigeria and Kenya as proof that, with proper training and industry links, local talent can compete globally.

Olusi urged African nations to leverage the African Continental Free Trade Area (AfCFTA) to build regional value chains, arguing that no single country can industrialise in isolation. “When goods, skills, and ideas move freely, industrialisation becomes sustainable,” he said. “Cooperation, not competition, will make Africa stronger.”

He also called for consistent institutional execution, observing that between 2020 and 2023, more than 200 industrial policies were launched across Africa, but fewer than 30 percent were implemented.

“A secure Africa must also be an industrialised Africa. A nation that cannot produce its own food, medicine, or machinery cannot claim to be secure,” he concluded.