African Nations Struggle to Implement Import Substitution Policies

Several African nations are pursuing import substitution and national preference policies with mixed results, as statistics reveal a widening gap between ambitious rhetoric and economic realities.

Nigeria recently implemented its “Nigeria First” policy, requiring public contracts to prioritize local businesses and include technology transfer clauses with foreign suppliers. Simultaneously, the country is investing €2 billion to train 2,000 pharmaceutical specialists annually, aiming to satisfy 70% of domestic medicine demand by 2030.

Cape Verde has adopted a multisectoral strategy focused on renewable energy, agriculture, and local industry development, securing €300 million from the EU and European Investment Bank to reduce fossil fuel dependence by 2030.

Morocco’s experience highlights implementation challenges. Despite promoting a “Made in Morocco” strategy since 2020 with provisions for a 15% preference margin for local companies in public tenders, Morocco’s import dependence continues to grow. Finished consumer goods imports increased 8.7% to 43.6 billion dirhams (€4.1 billion) by March 2025, while total imports reached 187.7 billion dirhams, up from 175.6 billion a year earlier.

Djibouti has made more concrete progress, with 71% of public contracts awarded to local companies in 2024.

These policies face common challenges: tension between protectionism and necessary global integration; fragile local production capacity; and risks to regional integration efforts like the African Continental Free Trade Area.

Success requires more than trade barriers, experts note. Countries must develop integrated ecosystems combining innovation, training, and structured industrial development. Cultural shifts promoting local consumption as civic responsibility are equally important.

The movement reflects a global reconfiguration of value chains accelerated by the pandemic and geopolitical tensions, requiring governance that balances national interests with regional cooperation.