Transforming Africa’s manufacturing hubs
Creating an enabling environment to boost manufacturing hubs in Africa is key for the continent to become a major global actor in trade. That’s the stance of Mansur Ahmed, Chairman of the Pan-African Manufacturers Association. Speaking with CNBC Africa, he stresses policy and regulation environments across the continent’s borders must be transformed to ensure meaningful trading.
Wed, 15 Nov 2023 15:01:38 GMT
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AI Generated Summary
- Investment in infrastructure and manufacturing is essential to drive economic growth and enhance trade capabilities.
- Harmonizing policies and regulations across African borders is critical to facilitate smoother trade relations and create a unified market.
- Boosting manufacturing capacity and fostering collaboration among African businesses are key to competing in the global marketplace and strengthening Africa's position in the global economy.
Africa, with its vast resources and potential, is poised to become a major player in the global economy. In a recent interview with CNBC Africa, Mansur Ahmed, Chairman of the Pan-African Manufacturers Association, highlighted the importance of creating an enabling environment to boost manufacturing hubs in the continent. According to Ahmed, the establishment of the African Continental Free Trade Area (AFCFTA) agreement marked a significant milestone in African economic history. This agreement is seen as a crucial step towards transforming Africa's economy and trade dynamics. The traditional model of exporting raw materials and importing finished goods has left Africa at a disadvantage, with little control over prices. Ahmed emphasized the need to shift towards a value-based trading system, where Africa can leverage its resources to drive prosperity and economic growth.
One of the key factors in achieving this transformation is investment. Ahmed stressed the importance of attracting both foreign and domestic investment across various sectors, particularly in infrastructure and manufacturing. Creating a conducive environment for trade is also essential, which includes improving the payment systems to facilitate transactions in local currencies. Additionally, harmonizing policies and regulations across African borders is critical to enable smoother trade relations. The AFCFTA Secretariat plays a vital role in this process by working towards creating a unified market where African countries can trade freely.
Another crucial aspect highlighted by Ahmed is the need to boost manufacturing capacity. With 70% of global trade involving manufactured goods, it is imperative for Africa to enhance its manufacturing capabilities to compete on a global scale. Collaboration among African manufacturers, supported by key institutions such as the African Union Commission, AfriExim Bank, AFCFTA, and the African Development Bank, is essential for building robust value chains and driving economic growth.
In conclusion, Ahmed emphasized the significance of engaging the African private sector, especially in the manufacturing industry, to drive innovation, collaboration, and investment. By encouraging local entrepreneurs to work together and build sustainable business practices, Africa can strengthen its position in the global market. The efforts put forth by AFCFTA and the Inter-African Trade Fair (IATF) are seen as positive steps in the right direction, but there is a continued need to foster integration and collaboration among African businesses to realize the full potential of the continent's manufacturing sector.
As Africa continues its journey towards economic transformation, the focus on creating a conducive environment for manufacturing and trade will be instrumental in shaping the future of the continent's economy and positioning it as a key player in the global marketplace.
