African states must use digitalisation to accelerate growth – Siemens
Digitalisation offers Africa the opportunity to accelerate growth and rapidly expand struggling economies, but decision-makers must get strategies in place quickly in order to succeed, industrial manufacturing company Siemens said on Tuesday.
Experts say the urban population in Africa is expected to grow to 56 percent in 2050 from 35 percent in 2010, and this rapid urbanisation will require robust infrastructure to ensure expanding cities are hubs of growth and commerce.
A report put together by Siemens in conjunction with Frost & Sullivan, outlined the current state of key industries across the continent, identifying challenges and opportunities with a focus on water, manufacturing, mining and minerals as well as food and beverage.
The study found that the adoption of digital technologies was expected to remain varied across industries, markets and geographies, with the impact favouring businesses and industries that seek relevance and increasing contribution in international markets in addition to existing domestic markets.
"While advanced analytics and digitalisation are witnessing growing adoption across certain industry sectors, such as the automotive sector, there is a real opportunity for adoption of these across industry sectors such as the mining and food & beverage industry which are significant contributors to major African economies," it said.
"Manufacturing, while the most mature in its transformation and adoption of digital technologies in Africa, remains a marginal player struggling to make a bigger impact on country GDPs (gross domestic product). The question governments need to ask themselves is how they align a ‘here-and-now’ emphasis on job creation with the necessary focus on digitalisation."
It said expenditure in water infrastructure had been low compared to the global average and had also been accompanied by poor water utility management.
The mining industry had seen subdued investment, rising cost pressures and increasing labour issues, the report said, and a combination of mechanisation, efficient extraction of resources and better use of data could make it easier for mine operators to cut costs and create leaner and more efficient operations.
"As such, the successful incorporation of technology will be possible through collaborative efforts of technology providers, industry, research institutes and organizations that work for uplifting the mining industry," it said.
By providing high levels of infrastructure and power supply, Africa would be able to attract the necessary investment across various industry sectors.
Siemens said the findings from the study were just a starting point which it hoped would begin a dialogue and provide a framework for some of the opportunities existing for Africa.
Comments
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation