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Nigeria and Africa after aid: factories, not foreign funds

The Editorial Board
5 Min Read

In Aba, southeast Nigeria, hundreds of small-scale manufacturers craft leather shoes that rival imports from Italy and China. In Kano, textile traders still recall the buzz of old factories before they fell silent. In Lagos, food processors, tech startups, and tailors operate side by side, scraping by, but building still.

These are not isolated stories. They are signs of what Africa’s future could be if it chooses to make and move goods, not wait for grants.

Because make no mistake: the aid era is over.

“Africa’s future will not be made in Brussels or Washington; it will be made in factories in Lagos, Dar es Salaam, Accra, and Nairobi.”

Read also: Africa and the opium of foreign aid

For over 60 years, many African countries have relied on foreign aid to fund health, education, and emergency response. But in 2025, the tap is closing.

The U.S. has effectively shut down USAID, once a $20 billion lifeline for global development. The UK has cut its aid spending by 40 per cent. Germany is pulling back by $5.3 billion. Even multilateral donors are scaling down.

This is not temporary belt-tightening. It is a structural retreat.

Western voters are demanding a domestic focus. A YouGov poll shows that 65 percent of Britons now prefer increased defence spending over overseas aid. The political winds have shifted. Africa is no longer the world’s top priority.

That may sound grim. But it is also a moment of liberation.

Aid saved lives. It helped build schools, deliver vaccines, and fill budget gaps. But it never industrialised a country. It never created mass employment. And it certainly never built global brands.

At best, it patched wounds. At worst, it created complacency.

Now that aid is shrinking, Africa must ask the right question, not “Who will save us?” but “What can we build for ourselves?”

Read also: US slashes 83% of its foreign aid

The answer lies in history. In the 1980s, China was poorer than much of Africa is today. But it did not beg for handouts. It opened industrial zones, built railways, and trained workers. It welcomed manufacturers from abroad but made them hire locally and share knowledge. Four decades later, China is the world’s factory floor.

Vietnam followed suit. In 1986, it had a GDP per capita of just over $100. Today, it’s over $4,300. Its path was built on light manufacturing, export incentives, and targeted infrastructure.

Africa has youth – over 60 percent of the population is under 25. It has resources: cobalt, lithium, rare earths, iron, and gas. It has scale, and AfCFTA offers a $3.4 trillion internal market. It has momentum.

Ethiopia’s industrial parks attracted firms from Turkey, China, and India, creating over 80,000 manufacturing jobs before conflict slowed progress.

Rwanda and Ghana are reforming business environments. Kenya is growing its light manufacturing. Nigeria, with its size and entrepreneurial culture, could anchor regional value chains.

But raw ingredients alone are not enough: what is missing is investment in value addition, processing minerals, assembling devices, and producing goods, not just exporting raw materials.

Africa’s future will not be made in Brussels or Washington; it will be made in factories in Lagos, Dar es Salaam, Accra, and Nairobi.

People like Christelle Kwizera are already showing the way. At 22, she launched Water Access Rwanda, building affordable water systems now used by over 100,000 people without waiting for Western grants.

“Africa doesn’t lack ideas,” she says. “It lacks investment in those ideas.”

Read also: US to probe past foreign aid to Nigeria, others amid terrorism funding concerns

Across the continent, young people are building apps, bikes, fabrics, solar kits, and school platforms. What they need is not a donor. They need a stable power grid, a reliable port, a mentor, and access to finance.

Global investors are watching. The rise of green tech, electric vehicles, and AI is creating demand for African inputs. But to move up the value chain, governments must act fast, cut tariffs, streamline trade, invest in skills, and build with intention.

Africa has been here before: promised prosperity, then sidelined by extractive deals and external advice. This time must be different.

Not because donors are leaving, but because Africa is ready to build without them.

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