Expert View

07 May 2026

Industrial Policies in Central Africa: Reimagining International Cooperation for Sustainable Development

Targeted industrial policies can power green industrialization and deliver for growth and employment in Central Africa. The region should prioritize cooperation over blanket bans on unprocessed minerals and accelerate the implementation of the AfCFTA to leverage its 1.4 billion consumer market and support green industrial strategies.

This article is part of a Synergies series on African trade and sustainability priorities and interests. Any views and opinions expressed are those of the author(s) and do not necessarily reflect those of TESS or any of its partner organizations or funders.

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Central Africa is the least integrated subregion in Africa, with a mix of landlocked countries and commodity exporters that have watched the world grow and industrialize. The Economic and Monetary Community of Central African States (CEMAC) comprises six countries: Cameroon, Chad, the Central African Republic, Gabon, Equatorial Guinea, and the Republic of Congo.

Following a wave of national development strategies, industrial policies are increasingly viewed as an important tool for development in CEMAC countries. A mix of national development strategies, import substitution plans, export bans, and tax incentives is supporting local production (Cameroon), boosting log export competitiveness (Central African Republic), and diversifying government revenues from oil to gas services (Equatorial Guinea). 

Here we discuss how industrial policies are delivering for growth and development, provide a brief analysis of a more outcomes-focused approach to industrial strategies in the subregion, and examine why Central African countries must move beyond a policy of critical mineral export bans.

Industrial Policy Should Focus on Verifiable Outputs and Outcomes

There is evidence across Central Africa that market-oriented industrial strategies can support job creation, industrialization, and greater competitiveness and integration into global value chains.

Cameroon’s National Development Strategy 2030 (NDS30), import substitution strategy, investment laws that prioritize job creation and skills and technology transfers, and fiscal incentives have resulted in a 27% increase in newly registered SMEs between 2020 and 2024, reduced dependency on imported clinker for construction, and higher (yet insufficient) agricultural output. Cameroon’s tax incentives have attracted bus assembly, promoted a range of sector-specific AI companies, and are slowly reducing dependence on imported products like wheat and rice, whose imports fell 24% in 2025 after the government reduced VAT for locally-made flour

Similarly, Gabon’s industrial policy has focused on supporting industrialization by banning log exports. After establishing the Nkok Special Economic Zone, local furniture and veneer factories grew, making Gabon among Africa’s top five exporters of sawn and partially processed wood, contributing 6.5% of the country’s GDP

Chad Connection 2030 targets $30 billion in investment. The country is building regional slaughterhouses and tanneries to process livestock domestically and add value to exports. Rather than live cattle crossing borders, refrigerated meat exports are now being sold to neighbouring countries across Central Africa. 

Even conflict-prone Central African Republic (CAR) is creating agriculture poles to formalize artisanal mining and rebuild cotton and coffee value chains. In the last five years, ginning has returned to the southern regions, and export traceability for diamonds and gold has grown. 

Policymakers in Central Africa applied industrial policies before the World Bank accepted their usefulness under certain circumstances. However, industrial strategies only work when a number of factors are present: a large domestic market, fiscal space, and capacity (human and technical capital). While Central African countries don’t fit neatly into those categories, they have implemented industrial strategies through state budgets, investment laws, and incentives. 

Rather than train engineers and software developers, Central African countries should work with international partners to support learning-by-doing as this will help Africans develop verifiable technical capacity for various types of projects. Furthermore, implementing the African Continental Free Trade Area (AfCFTA) by accelerating the ratification of the protocol and the simplification of trade regimes creates a 1.4 billion market for Central Africans, enabling them to implement industrial strategies within a consolidated African market. However, Central Africa must reduce it 2.3% fiscal deficit to create room for big ticket items such as beneficiation plants, energy, and skills-based learning centres. 

Beyond Export Bans: Why Cooperation Delivers Better Value

A wave of export bans is sweeping through Africa. Ghana will ban all exports of unprocessed manganese, bauxite, or iron ore by 2030, Zimbabwe suspended exports of lithium in February 2026, and the Democratic Republic of the Congo has imposed a quota system for cobalt. For such bans to succeed, they must be accompanied by measures to attract investment and increase energy production to support value addition. As AfCFTA implementation continues, countries could work together to create processing hubs that are integrated into regional and international value chains, as suggested in the African Union’s Green Minerals Strategy.

Additionally, the G20 Critical Minerals Framework—a voluntary, non-binding blueprint for the sector adopted under the South African presidency—emphasizes the need for cooperation to boost local beneficiation and encourage midstream investment (refining) in producer countries. This will occur through technology transfer on "mutually agreed terms" and ensure supply security without protectionism.

Central Africa must seize these opportunities. The region could sign mutually beneficial investment partnerships that enable verifiable and measurable skills and technology transfer to support industrialization; moving beyond basic processing to high-tech exports like SIM card trays and slots, camera modules, and sensors for electronic devices and electric vehicles among others.

Policymakers and practitioners should also leverage the Trade in Critical Minerals database, launched by the WTO and Asian Development Bank at the COP29 climate change conference to provide transparency and mapping of trade flows as well as information on trade policies for over 250 critical minerals essential for the energy transition. 

Conclusion

Central African countries must ensure a stable electricity supply, trade-relevant infrastructure, and verifiable skills and technology transfer to ensure their integration into value chains and power a green industrialization.

Targeted industrial policies can deliver for growth, employment, and the environment, with Africa prioritizing cooperation over blanket bans on unprocessed minerals. While macroeconomic stability is a priority for successful industrial policies, Central Africa should accelerate the implementation of the AfCFTA to leverage its 1.4 billion consumer market and support current industrial strategies.

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Henri Kouam is Founder and Executive Director, Cameroon Economic Policy Institute (CEPI).

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Synergies is an online platform featuring expert commentary and opinions curated by TESS. We foster dialogue and incubate ideas on how to shape a global trading system that effectively addresses global environmental crises and advances sustainable development. Synergies draws on perspectives from leading experts and practitioners across policy communities from around the world. We cultivate solutions-oriented policy analysis for a sustainable future.

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African Trade and Sustainability Priorities

This Synergies series aims to integrate and amplify perspectives from across the African content in discussions on international trade and sustainability.