Industrialisation is the engine of economic growth, leading to the accumulation of physical and human capital. In recent years, African countries have witnessed steady economic growth owing to their vibrant manufacturing sectors. This has boosted the exports of many, supporting the diversification of their exports mix and reducing their reliance on imports. Africa’s manufacturing sector has hardly started to realise its potential.
African countries have taken a number of steps to boost the manufacturing sector. The launch of the African Continental Free Trade Area in 2018 aimed to create a single market for goods and services in Africa in order to facilitate industrialisation. Similarly, the African Union has committed to prioritising its manufacturing sector in its Agenda 2063. African governments are establishing special economic zones and developing flexible policies to attract investment.
African nations are working towards repositioning themselves by means of significant policy changes. Government, for instance, has committed to providing varying financial support options to South African SMEs, manufacturing entrepreneurs and business people demonstrating the potential to contribute to social upliftment, job creation and economic growth. Furthermore, governmental frameworks are under way to restore marginalised communities in the manufacturing sector.
Africa’s manufacturing output has the capacity to exceed $1 trillion by 2025. Industry 4.0 is already in motion in developed economies, raising concerns as to whether Africa is prepared to capitalise on this wave. However, industry experts say that as an emerging market, Africa is free from infrastructure legacy issues, resulting in a higher level of flexibility than its developed counterparts. So Industry 4.0 represents a significant opportunity for African manufacturers. By embracing the multitude of opportunities that stand before them, such as increased political stability, growing investment prospects, enforcement of policies empowering black and female manufacturers and government funding incentives, the continent can aspire to compete on a global scale and realise its true potential.
All these developments are testimony to the continent’s ability to attain and maintain a thriving manufacturing economy. Up until recently, African manufacturing has appeared dormant, but the continent is an awakening giant that is set to disrupt its rankings within the global environment.
For more information contact Thembisa Bambathi, Siyenza Events, +27 11 463 9184, [email protected], www.siyenzaevents.co.za
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