The association said multinational manufacturers are increasingly restructuring their production networks to reduce dependence on a single manufacturing hub, creating fresh opportunities for emerging economies. However, it lamented that Africa continues to attract only a small fraction of the investments generated by the global realignment.
Speaking on the evolving global manufacturing landscape, PAMA Secretary-General, Segun Ajayi-Kadir, said while the severe logistics disruptions experienced during the COVID-19 pandemic have largely subsided, new geopolitical realities are reshaping international supply chains and influencing where companies choose to manufacture.
He explained that manufacturers are no longer concentrating production in one country but are diversifying operations across multiple locations to strengthen resilience, manage geopolitical risks and ensure business continuity.
According to Ajayi-Kadir, this transition presents a significant industrial opportunity for both Nigeria and the African continent, but inadequate infrastructure, weak industrial policies and an unpredictable investment environment continue to limit the region's competitiveness.
Referencing data from the Federal Reserve Bank of New York's Global Supply Chain Pressure Index (GSCPI), which measures freight costs, shipping conditions and manufacturing delivery times across major industrial economies, Ajayi-Kadir said the figures suggest that although pandemic-induced disruptions have eased, global supply chains remain vulnerable.
He noted that the index, which reached a historic peak of 4.45 standard deviations above its long-term average in December 2021 during the height of the COVID-19 crisis, declined significantly as shipping capacity improved, port congestion eased and supplier delivery timelines recovered.
"However, recent readings show that global supply chains have not returned to a permanently stable environment," Ajayi-Kadir said.
He disclosed that the index increased from 0.44 in January 2026 to 1.82 in April before moderating slightly to 1.77 in May, signalling that while pressures remain well below pandemic levels, fresh risks are beginning to emerge.
"During the pandemic, disruptions were driven by factory shutdowns, labour shortages and transport bottlenecks. Today, geopolitical developments such as trade restrictions, export controls, industrial policy interventions and disruptions to strategic maritime routes are increasingly shaping production and sourcing decisions," he said.
Ajayi-Kadir explained that although supply chains have become operationally more resilient, they have also become increasingly vulnerable to geopolitical tensions. This has accelerated the adoption of the "China Plus One" manufacturing strategy, under which multinational corporations retain significant operations in China while establishing additional production facilities in alternative countries to minimise concentration risks.
He observed that countries such as Vietnam, India, Indonesia and Mexico have emerged as major beneficiaries of this strategy due to their efficient logistics systems, dependable infrastructure, clear industrial policies and favourable access to international markets.
"They are positioning themselves as complementary manufacturing hubs within diversified global value chains rather than outright substitutes for China," he said.
Despite Africa's large labour force, expanding consumer market and abundant natural resources, Ajayi-Kadir lamented that the continent continues to capture only a negligible share of global manufacturing relocation. Although some African economies have secured modest investments, he said the region has yet to establish itself as a preferred destination for large-scale industrial expansion.
According to him, today's investment decisions extend beyond labour costs and are increasingly influenced by the availability of reliable electricity, efficient transport infrastructure, modern logistics systems, effective customs processes, strong supplier networks, regulatory certainty and access to integrated regional markets—areas where Nigeria still faces considerable challenges.
Ajayi-Kadir described the ongoing restructuring of global manufacturing as one of the defining industrial opportunities of the decade for Nigeria, stressing that the African Continental Free Trade Area (AfCFTA) provides a strong framework for building an integrated African production base capable of supporting regional value chains in sectors including automobiles, pharmaceuticals, agro-processing, chemicals, textiles, electronics and light engineering.
He, however, maintained that Nigeria can only maximise these opportunities through sustained investment in competitive industrial parks, reliable electricity supply, efficient port operations, modern customs administration, supplier development programmes and a stable, predictable investment climate.
The PAMA Secretary-General also urged African governments to prioritise the strengthening of regional supply chains alongside efforts to attract multinational manufacturers.
"Expanding regional sourcing of industrial inputs, intermediate goods and components under AfCFTA will reduce dependence on distant suppliers, shorten delivery times, improve resilience to external shocks and deepen value addition across African manufacturing. In many industries, building stronger regional production networks may deliver faster and more sustainable gains than waiting for large-scale manufacturing relocation from outside the continent," he said.