With growing supply chain disruption, climate impacts and political instability globally, African manufacturers need to devise resilient strategies and embrace regional integration to ensure sustainability, while governments need to effect robust industrial policies, a panel of experts concluded during a Manufacturing Indaba discussion, on July 15.

The panel comprised International Trade Administration Commission of South Africa chief economist Sharon Modibe as the moderator, Nedbank energy finance head Amith Singh, Zambian Industrial Development Corporation investments head Mulumba Lwatula, African Union Development Agency senior director Amine Adoum and Eswatini Commerce, Industry and Trade Ministry representative Albert Chibi.

The experts agreed that companies and governments should explore carbon pricing mechanisms, advocate for climate finance and technology transfer, strengthen data collection and reporting systems to comply with Carbon Border Adjustment Mechanism requirements, promote green industrial activity and public-private partnerships for climate-resilient manufacturing, invest in technical education and engineering skills development to support generational transitions, and leverage regional integration and shared infrastructure platforms to diversify manufacturing operations.

For Modibe, resilient manufacturing in Africa has both challenges and opportunities which need attention if the continent is to reduce its high import dependency and encourage more local sourcing.

She highlighted that developmental financiers had become more involved in policy planning and project planning, which showed how more stakeholders had become involved to ensure the sustainability of manufacturing.

Singh agreed, saying that banks were increasingly supporting clients in contingency planning and in decarbonisation efforts for companies to remain globally competitive.

Lwatula pointed out the importance of policy harmonisation and regional integration to support diversification and reduce risks, while Adoum emphasised the need for more capacity building and digitalisation in implementing trade agreements and protocols.

Chibi recognised, from a government perspective, the importance of maintaining investment confidence and ensuring stable and predictable policies.

The experts concurred that early and comprehensive succession planning, particularly for family-owned businesses, clear corporate governance and robust leadership development could create enduring manufacturing capacity. They also stressed the need to invest in technical education and involve the next generation of manufacturers as early as possible.

The panel concluded that more investment in digital infrastructure and energy development would ensure future manufacturing growth.