Africa is one of the most exciting and potentially dynamic markets in the world, increasingly capturing the attention of the world’s largest business
Africa is one of the most exciting and potentially dynamic markets in the world, increasingly capturing the attention of the world’s largest businesses. Strong economic growth, increasing regional economic integration and diversification, untapped natural resources, high access to mobile technology and a young, entrepreneurial demographic –these drivers have the potential to ensure that many markets in Africa will be capable of not just taking advantage of the Fourth Industrial Revolution but leapfrogging it.
Good governance, investment regulations, company easy operations, regulatory systems, these and other considerations should, if assured, provide the basis for continuing development and investment that can translate mega-trends into true possibilities and jobs.
In moments of uncertainty, the cash is cowardly and nations must guarantee that investments spanning several centuries generate a favorable and sustainable atmosphere. Where there is uncertainty about management, financial agendas or business growth, businesses will choose, where there is more assurance, to shift business choices and critical assets. Not only Sub-Saharan Africa but also more developed countries are concerned about this. Importantly, there is no default on Africa as’ a farm’ or’ a quarry’ or’ a beach.’
The case for a healthy economy— and production
During my many journeys through Africa, I had the privilege of participating Africa’s opportunities in production with governments, the private industry and corporate and commercial organisations. Indeed, Africa is mostly ready for economic development. However, how is Africa manufacturing coordinated? As the information shows, not every sector is equivalent. In no industry does the manufacturing sector create employment, importance and development. Depending on the type, production jobs create eight to 20 jobs around them; this is a multiple job that can not be ignored. It’s an outstanding multiplier.
Therefore, Africa can not stand alone and allow that industry to die if it is for stable markets. Growth needs intervention; government policy needs to be considered. This is understandable by other nations, especially our Asian neighbors. The trend is obvious. We see prosperous nations working more and more like effective businesses: maximizing their competitive benefits. And to create an attractive investment-rewarding environment. More should be done by African nations. The successful nations are the ones developing and continuously applying a domestic approach against it.
A new model of manufacturing
We need to turn production in Africa into a genuinely high-tech industry. Africa has concentrated too strongly on “sub-optimal production,” a scale which can occur only behind a high tariff barrier and which can only serve a national industry really. Instead, we need’ sophisticated production’ that requires raw materials, mixes them with intellectual ability and creates added importance to build a worldwide feature. The next-generation sectors have a huge requirement and huge profit to make for advanced manufacturing.
We need to turn production in Africa into a genuinely high-tech industry. The’ sub-optimum production scale’ was concentrated too strongly in Africa, which can only occur behind a high tariff barrier, and can only serve a national industry. We instead need’ sophisticated production’ which uses raw materials, brings them together with mental skills, and adds importance to build the world’s required features. The next generation industry is working on advanced manufacturing, where huge demands and huge profits need to be produced.
These sectors, especially those with competitive benefits such as sophisticated mining, power, agro-health, and water leadership technologies, could and should be established by South Africa, Nigeria, Kenya, Ethiopia and other African nations. So we transform our development centres into centres of business. This is how we draw producers who are able to market state-of – the-art products. That’s how we generate a virtuous business cycle. That won’t occur by default, however.
Priority regions for the creation of an sophisticated production setting include:
Energy: Production needs access to credible, cost-effective and effective power resources. In many African nations, power generation, transmission and storage infrastructure has extended substantially with a focus on renewable energy sources, such as geothermal and wind. In order to meet the energy requirements of an enlarged economy, continuous capacity building will be critical, thanks to a stronger and more priority infrastructure growth approach.
Trade: Production depends on worldwide economies, and therefore access to these markets is essential. Trade facilitation, as well as the promotion of informatic products for further production, job-screening and consumer growth in Africa, are essential to work with businesses to achieve policy objectives, anti-corruption initiatives and customs efficiency. Enabling market access to both in-depth fresh products, such as ecological innovations, that can meet local difficulties and access to important outputs that can develop needed economies, through decreasing tariff barriers or non-tariff barriers (for example, chemical products that contribute to more energy-efficient building materials).
Enhance education and skills development. Highly skilled jobs are advanced production jobs. Global companies go where the potential is, and we have to ensure that this is Africa. This will involve improved currículums based in the fields of STEM (Science, Technology, Mathematics and Engineering), fresh hires for skilled education professionals, and fresh learning methods and developments in the school, particularly in science. We also need to rethink our student visa and immigration policy in relation to fast-tracking local talents to get the smartest learners in the world and promote them to remain in the country. This can be done only by competitive educational organizations.