Development think tank the Milken Institute and philanthropy organisation the Motsepe Foundation have announced the Milken-Motsepe Prize in AI and Manufacturing.

The challenge calls on entrepreneurs worldwide to deploy AI, data analytics and smart-factory technologies that can localise production, reinforce supply chain resilience and create high-quality jobs across Africa.

The challenge will award $2-million in total, including a $1-million grand prize, and seeks breakthrough solutions that, in combination, can harness advanced technologies to optimise production, reduce waste and localise value chains.

It is also looking for solutions that encourage models that promote equitable access to essential goods, such as healthcare, food processing, affordable construction materials, as well as solutions that unlock job creation and export potential across African economies.

“We want to see what bold entrepreneurs are doing for the manufacturing sector to harness the power of AI and other advanced technologies to improve the supply chain in Africa,” says Milken Institute environmental and social innovation MD Dr Emily Musil.

Manufacturing underpins about one-sixth of global GDP, yet Africa, which is home to nearly 18% of the world’s population, contributes less than 2% of that output. This gap leaves the continent heavily reliant on imports and vulnerable to external shocks, the organisations say.

In South Africa, the importance of re-industrialisation has become stark. Statistics South Africa’s latest data shows that GDP inched up just 0.1% in the first quarter of this year, with manufacturing the single largest drag on growth.

Weak investment also disrupted value chains and declining inventories underscore the need for fresh industrial dynamism.

“Long-range modelling by [security policy think tank] the Institute for Security Studies finds that a manufacturing-led growth path accelerates GDP expansion and generates more employment than agriculture, owing to its economy-wide spillovers into services, logistics and high-value agriprocessing.

“Revitalising factories, therefore, is central to absorbing Africa’s fast-growing urban workforce,” the organisations emphasise.

Registration is open until July 31 and companies from around the world are encouraged to apply.

The new AI and Manufacturing challenge targets the sector with the greatest potential to transform Africa’s economic trajectory, the organisations say.