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<p>The world of fashion has seen the decline in consumer spending power and the cancellation of fashion shows around the world with brands such as Gucci, Dior and Chanel postponing its fashion collection debut’s as the virus fears have banned the social gatherings of individuals. As the fear starts to settle in South Africa many social gatherings, production creation and manufacturing is also experiencing a slowdown. Renowned South African Fashion Designer Johan-Gert Coetzee joins CNBC Africa for more.</p>


COVID-19 impact on the global fashion industry

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The African Development Bank (AfDB) Group predicted Kenya&#8217;s 2020 GDP to grow at 6 per cent this year, boosted by favourable weather conditions and big-ticket investments around the Big 4 agenda on health, housing, manufacturing and agriculture. Also, Kenya’s private sector activity fell for the first time in nine months to January, largely due to weak consumer demand, pointing to poor cash flow in the country. Rodney Omukhulu, Assistant Investments Analyst at Cytonn joins CNBC Africa for more.</p>


Here’s how Big 4 agenda is expected to grow Kenya’s GDP by 6%

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<p>Just over 2 years ago, when Kenyan President Uhuru Kenyatta began his second term in office, he released his development blueprint for Kenya, known as the Big 4 Agenda. The plan outlines 4 pillars of development: Food security, affordable housing, universal health care and manufacturing – but now with only about two and half more years to go, how much of the blueprint has the Government achieved and what comes next? Journalist, Joseph Bonyo joins CNBC Africa for more.</p>


How much traction has Big 4 Agenda gained in developing Kenya four years on?

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<p>Economic contractions were bound to happen as power supply instability threatens activity. Q3 employment figures show that 28,000 jobs were shed. Contractions in the manufacturing, construction and community services industries were the hardest hit. CNBC Africa’s Karabo Letlhatlha spoke with Numsa&#8217;s Deputy General Secretary Karl Cloete.</p>


Numsa’s Karl Cloete on what’s behind the mass job losses in South Africa

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<p>South Africa has experienced a stable growth in the manufacturing sector with a 4.6 per cent year on year increase, according to Stats SA this is the biggest expansion since June 2016. With a focus on highlighting growth opportunities for black industrialists, inclusion and asset ownership &#8211; the Manufacturing Indaba kicks off today for its 2 day event. CNBC Africa’s Karabo Letlhatlha spoke to Avi Bhattt, joint CEO of Fire Raiders.</p>


Fire Raiders CEO: Why entrepreneurs should consider manufacturing

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<p>Statistics South Africa released a surprising picture of accelerated growth in South Africa’s manufacturing sector. Can investors and manufacturing stakeholders across the continent expect more from this glimmer of hope with this year’s Manufacturing Indaba approaching? Joining CNBC Africa for more is Coenraad Bezuidenhout, Managing Director, Strategic Communications, FTI &#038; Patuxolo Nodada, CEO, Busmark Group.</p>


Manufacturing could be a game changer for African economies, here’s why

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<p>A French based firm that specializes in designing and manufacturing solar powered milk cooling tanks has shown interest in establishing its presence in Rwanda. CNBC Africa is joined by Ali Haidar, Sales Manager for milk coolers in Africa and Middle East at Serap Group, to shed more light on this.</p>


French firm seeks to introduce solar-powered milk coolers in Rwanda

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<p>Nigeria has set a target to double its manufacturing output to 20 per cent of GDP within six years and will set up special economic zones across the country in partnership with regional aid banks to achieve this target. Johnson Chukwu, CEO of Cowry Asset Management Limited joins CNBC Africa to discuss this.</p>


Nigeria explores new measures to grow its manufacturing industry

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<p>Manufacturing and construction industries have been the main sectors to shed most jobs. This has been reported in the third quarter employment numbers released by Statistics SA. These results show a decrease of 16 thousand jobs in formal non-agricultural sector the quarter ended in September. Joining CNBC Africa to unpack the employment survey for the third quarter is Matlapane Masupye, Director Employment Statistics at StatsSA.</p>


Manufacturing, mining major contributors to third quarter job losses

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<p>The Central Bank of Nigeria&#8217;s manufacturing PMI for October came in at 56.8 index points, indicating an expansion for the 19th consecutive month. Ugochukwu Irechukwu, Divisional Head, Institutional Banking at Diamond Bank joins CNBC Africa from the banking hall for this discussion.</p>


Nigeria’s manufacturing PMI expands to 56.8 points in October

<p>By Professor Landry Signé, David M. Rubenstein Fellow in the Global Economy and Development Program and Africa Growth Initiative at the Brookings Institution, distinguished fellow at Stanford University’s Center for African Studies, World Economic Forum Young Global Leader, and author of “Innovating Development Strategies in Africa: The Role of International, Regional and National Actors.”</p>
<p>How to unlock the manufacturing and industrialization potential in Africa? The United Nations General Assembly has proclaimed the Third Industrial Development Decade for Africa (IDDA III, 2016-2025) but the gap between the tremendous potential of the sector and the actual performance remains monumental. In order to help bridge the gap and offer business and policy leaders with Africa’s biggest opportunities and perspectives in the sector, the Brookings’s Africa Growth Initiative has just released a report entitled The potential of manufacturing and industrialization in Africa: Trends, opportunities, and strategies.</p>
<p>In fact, among policymakers and scholars alike, a robust manufacturing sector is broadly understood as a fundamental path to economic growth and development. The most recent illustration is the launch of the African Continental Free Trade Area (AfCFTA) in March 2018, a single market for goods and services in Africa that aims to unlock manufacturing potential and facilitate industrialization, driving sustainable growth and jobs among other objectives. The key boon of manufacturing is that it absorbs large swaths of workers and places them into productive and decent paying jobs. Throughout history, this exact recipe has transformed the United States, United Kingdom, France, Japan, and Germany into some of the world’s wealthiest nations. Most recently, a new age of industrialization has helped push China into one of the world’s fastest-growing economies boasting the largest middle class, with other Southeast Asian countries following closely behind. These are all examples of how industrialization can generate rapid structural change, drive development, and alleviate poverty and unemployment.</p>
<p>However, this narrative seems to exclude many African nations. Despite their manufacturing potential and promising trajectories, most African countries have remained relatively dearth of factories. This limited industrial development represents a missed opportunity for economic transformation and quality employment generation that alleviates poverty.</p>
<p>The silver lining is the potential. Business-to-business spending in manufacturing in Africa is projected to reach $666.3 billion by 2030, $201.28 billion more than that it did in 2015. Irene Yuan Sun, author and consultant, considers Africa to be “the world’s next great manufacturing center”, potentially capturing part of the 100 million labor-intensive manufacturing jobs that will leave China by 2030. This trend creates a huge opportunity for the continent, not only for countries such as South Africa, Egypt, and Nigeria (all regional outperformers in the Global Manufacturing Competitiveness Index), but also for newer players such as Ethiopia, Morocco, Rwanda, and others (all of whom have recently adopted policies enabling manufacturing and industrial development).</p>
<p>Today, leaders are increasingly realizing that manufacturing is a major factor in helping Africa achieve their goals of successfully reaching the next stage of economic development. The African Union has put the sector front and center in its Agenda 2063. African governments are seeking new and innovative ways to attract investment and nurture industry, implementing strategies that involve targeted investment in infrastructure, improved regional integration, and the establishment of special economic zones (SEZs) for priority subsectors.</p>
<p>However, in order to reach its manufacturing and industrial potential, much needs to be done by the public and private sectors to increase Africa’s economic complexity, diversity, competitiveness, and productivity. This report explores some of the key structural constraints that have prevented Africa’s manufacturing sector from maturing and from launching the same kind of economic modernization process witnessed in other developing regions. It also conducts a cross-national comparison of the manufacturing sector in Africa, providing illustrative examples of countries that are experiencing four unique trajectories of industrial development, and identifying specific opportunities in each country based on the size and level of competitiveness of their manufacturing markets. Finally, with special attention to current major transformations, the report draws conclusions about the future of the manufacturing sector in Africa.</p>
<p>The report ultimately offers business leaders an accessible overview of Africa’s biggest opportunities in the manufacturing sector, discussing trends and perspectives by 2030. It provides policymakers with some options likely to attract private investors, accelerate manufacturing and industrial development, and contribute to growth and poverty alleviation, facilitating the fulfillment of the SDGs and the African Union’s Agenda 2063. While policy solutions are likely to differ across countries, manufacturing will be central to Africa’s ability to meet its development goals.</p>


OpEd: How to unlock the manufacturing and industrialization potential in Africa

<p>By Gavin Young, CEO, Bridgestone South Africa</p>
<p>If you can find the right approach, there are big opportunities in manufacturing, even in South Africa. To realise them, though, manufacturers will have to up their game.</p>
<p>On the face of it, the prospects for manufacturing in South Africa continue to look bleak. Absa’s Purchasing Managers Index, which measures sentiment in the manufacturing sector only, slumped again recently, and growth forecasts are being revised downwards. Eskom had to cut electricity supplies recently owing to strike action, but a stable power supply is one of the prerequisites for successful manufacturing.</p>
<p>Figures like these—and there are many others—spell out the brutal economic realities with which we must come to terms if any vestige of Ramaphoria is to survive. Getting our manufacturing sector growing again is clearly a priority if we are to begin pushing back the tide of joblessness that fundamentally threatens our social stability.</p>
<p>Bridgestone has been manufacturing tyres in South Africa for 90 years, so you could say we have earned our stripes. We have a large investment in plant in this country, and we need to find ways to keep it profitable, and even to expand it. Like everybody else, we want to participate in the growth shown by emerging markets, but we face the same challenges of an unreliable supply of skills from a failing educational sector, a volatile currency, and an investment climate that is uncertain at best.</p>
<p>For us the opportunity is particularly clear because mobility receives a higher share of wallet in emerging markets as compared to the First World, and is highly aspirational.<br />
We have been doing some hard thinking about how to work around these challenges, and some of our conclusions might be of value to manufacturers or would-be manufacturers in other sectors.</p>
<p>Understand your customers. Basic, but your success depends on how well you understand what customers want. Manufacturers tend to spend less time on this and more on streamlining their processes. We are devoting a lot of energy to understanding our customers and then how to respond to their needs. Holding stock is too expensive, so we have to be able to do shorter runs in order to get the right product to the right outlets at the right time.</p>
<p>Specialise. Our company is a case in point. We are one of two manufacturers of truck and bus tyres in Africa, and we also make tyres for the SUVs and luxury vehicles this market increasingly prefers. Close relationships with the relevant car manufacturers gives us a good baseload on which to build.</p>
<p>However, because we have a relatively large number of vehicle models and a small market, we have had to get very good at being able to change over our lines quickly. This is in contrast to the typical manufacturing strategy of long production runs and thus large economies of scale.</p>
<p>Our truck and bus business provides us with the capability to supply product to other African countries. As those consumers climb up the aspiration curve to their first BMW or SUV, we will be well-placed to go with them. As regards tyres (and vehicles) at least, we think South Africa is a good case study for how the rest of the continent will develop. In this sense, specialisation is the recipe for expansion.<br />
Build ecosystems. We are lucky enough to be part of a global company, and we have learned to use that to our advantage. Because of our small market and the need for relatively small runs, we find it’s better to source tyres for ordinary sedans from our facilities in Europe, where high volumes yield great economies of scale. In return, they tend to rely on us to make and supply tyres for the relatively small numbers of SUVs in those markets.</p>
<p>There is no reason why manufacturers that are not from the same group should not craft a similar kind of approach, playing to each other’s strengths. The trick is to identify these convergences.</p>
<p>We are also investigating practical but highly innovative ways of addressing the lack of the right skills, but our initiatives are not yet ready to be revealed.</p>
<p>Manufacturing in South Africa does have a potentially bright future, but to realise it will require us all to do some very hard thinking. Manufacturers need to invest in plant and keep on investing but these investments have to be highly focused or they will go nowhere.</p>


OpEd: Finding the right approach to the big opportunities in manufacturing

<p>By Sabine Dall’Omo, CEO for Siemens Southern and Eastern Africa</p>
<p>The value of data coupled with connected infrastructure and industrial ecosystems offers Africa a remarkable opportunity to create smart factories of the future. Data will be at the heart of reinvigorating Africa’s industrial prowess, creating new industries and an entirely new set of jobs that previously did not exist.</p>
<p>Historically, Africa’s growth has been defined by its abundance in natural and mineral resources but digitalization will change this. It will tip the scales of Africa’s economic outlook more towards exports emanating from the manufacturing sector, with the textile vertical being the prime example. Developing factories of the future will boost Africa’s GDP and catapult its international competitiveness by merging both the physical and virtual worlds. The future will now be defined by how Africa harnesses its manufacturing potential and how it moves the industrial revolution forward.</p>
<p>The continent’s unique identity and extraordinary sense of creativity could be what puts us on the global map. The Afro-inspired design revolution taking shape is an opportunity to take our ingenuity to the world, and with skills development the continent will see a new industry emerge. The combination of smart hardware and intelligent software could help position Johannesburg, Nairobi or Lagos as the next design capital of the world.</p>
<p>The Siemens FABRIC showcase, launched at the end of August, is a testament to the talent Africa holds. Told through the universal language of fashion, FABRIC was a powerful project that demonstrated how data combined with technology could transform African cities. Three iconic African fashion designers (John Kaveke, Zizi Cardow and Palesa Mokubung) created one-of-kind outfits weaving in data extracted from these three African cities to tell a unique story about each of them. These are the kind of edgy collections that have gained the attention and admiration of the international fashion community, taking all three designers to renowned fashion shows across the world. But despite recognition on the global catwalk, the economic output from the apparel industry in Africa has not been grand in the last few years. However through digitalization, Africa’s dynamic fashion sense could become a global hit.</p>
<p>&nbsp;</p>
<p><strong>Urbanization</strong></p>
<p>As urbanization rapidly increases, so too does the demand in products and services. In the last few years, manufacturers have had to shorten throughput times to keep up with the increasing trend of individualised mass production and at the same time reduce their energy and raw material consumption. Now is the time for manufacturers to relook at rising production costs and determine how to safeguard their competitiveness.</p>
<p>As connectivity changes the world and how we communicate, the manufacturing industry will also need to adapt. Transforming into factories of the future will be a smart step because intelligent machines will effectively respond to changing market and customer needs, and enable manufacturers to pick up on inefficiencies quickly. The industrial internet of things (IIOT) will be the foundation of production, ensuring machine to machine communication and automation while real-time data boosts productivity and revenue. Digitalization will transform workforces and contribute to the entire value chain while ensuring safe, reliable operations.</p>
<p>According to a Frost &amp; Sullivan White Paper by the Manufacturing Leadership Council, the manufacturing industry will look completely different in the next 10 to 15 years as industries become high-tech engines of mass customization.</p>
<p>“Highly automated and information-intensive, the factory of tomorrow will look like an integrated hardware and software system…fuelled by vast quantities of information from every corner of the enterprise and beyond, moderated by analytical systems that can identify and extract insights and opportunities from that information, and comprise of intelligent machines that learn, act, and work alongside highly skilled human beings.”</p>
<p>Through research and insights, Siemens acknowledges the vast potential and possibilities for Africa’s future through manufacturing and has already been hard at work creating technologies for smart factories. It has created flexible, modular, economic automation and drive solutions to help industries transform easily. Its single-source solution maximises production and minimises downtime and has the capability to cover all facets of a textile plant from the production of chemical fibres and yarn to spinning, fabric manufacturing and finishing. It’s cost-effectiveness in configuration and commissioning makes it a manufacturer’s dream. Industrialisation will additionally bridge the gap between blue and white collar workers creating an upskilled workforce termed ‘grey-collar’ workers. This dynamic and developed staff contingent will be able to execute their duties with ease in the digital economy, alongside machines.</p>
<p>This transformation will push the continent onto another level that amplifies GDP, while creating a smarter Africa for all. The role of data architecture in this metamorphosis cannot be magnified enough, and with the exponential value of industrialization, Africa’s development could be fast tracked to tip the scales of its economic potential. The only element left will be active collaboration between government, regulators, business and society.</p>


OpEd: How to transform Africa’s manufacturing industry through data

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<p>What target sectors can speed up inclusive and sustainable growth in Nigeria? Dave Uduanu, CEO of Sigma Pensions says the key is to look to infrastructure, manufacturing, housing and value-added services.</p>


Promoting inclusive  growth in Nigeria

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<p>Real GDP growth in the manufacturing sector in the fourth quarter of 2017 was 0.14 per cent year on year, which is 2.68 per cent higher than the same quarter the year before and 2.99 per cent points higher than the preceding quarter.</p>


Nigeria’s manufacturing sector outlook

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<p>Nigeria&#8217;s economy has returned to growth, increasing by 0.83 per cent for the full year of 2017. Henry Boyo, an Economist joins CNBC Africa for his take on the country&#8217;s growth figures.</p>


Nigeria’s GDP grows by 0.83% in 2017

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<p>Ejikeme Okoli, Research and Market Intelligence Officer at Diamond Bank join CNBC Africa to discuss the outlook for Nigeria&#8217;s non-oil sector in 2018.</p>


manufacturing

COVID-19 impact on the global fashion industry

Here’s how Big 4 agenda is expected to grow Kenya’s GDP by 6%

How much traction has Big 4 Agenda gained in developing Kenya four years on?

Numsa’s Karl Cloete on what’s behind the mass job losses in South Africa

Fire Raiders CEO: Why entrepreneurs should consider manufacturing

Manufacturing could be a game changer for African economies, here’s why

French firm seeks to introduce solar-powered milk coolers in Rwanda

Nigeria explores new measures to grow its manufacturing industry

Manufacturing, mining major contributors to third quarter job losses

Nigeria’s manufacturing PMI expands to 56.8 points in October

OpEd: How to unlock the manufacturing and industrialization potential in Africa

OpEd: Finding the right approach to the big opportunities in manufacturing

OpEd: How to transform Africa’s manufacturing industry through data

Promoting inclusive growth in Nigeria

Nigeria’s manufacturing sector outlook

Nigeria’s GDP grows by 0.83% in 2017

Nigeria’s non-oil sector set to grow – Expert

News Tips

Advertise With Us

manufacturing

COVID-19 impact on the global fashion industry

Here’s how Big 4 agenda is expected to grow Kenya’s GDP by 6%

How much traction has Big 4 Agenda gained in developing Kenya four years on?

Numsa’s Karl Cloete on what’s behind the mass job losses in South Africa

Fire Raiders CEO: Why entrepreneurs should consider manufacturing

Manufacturing could be a game changer for African economies, here’s why

French firm seeks to introduce solar-powered milk coolers in Rwanda

Nigeria explores new measures to grow its manufacturing industry

Manufacturing, mining major contributors to third quarter job losses

Nigeria’s manufacturing PMI expands to 56.8 points in October

OpEd: How to unlock the manufacturing and industrialization potential in Africa

OpEd: Finding the right approach to the big opportunities in manufacturing

OpEd: How to transform Africa’s manufacturing industry through data

Promoting inclusive growth in Nigeria

Nigeria’s manufacturing sector outlook

Nigeria’s GDP grows by 0.83% in 2017

Nigeria’s non-oil sector set to grow – Expert

News Tips

Advertise With Us

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