With the majority of African countries having ratified the African Continental Free Trade Area Agreement, panellists gathered at the Manufacturing Indaba earlier this week proposed that governments and business start identifying and promoting Africa’s competitive manufacturing capabilities at a continental level.
The panellists agreed that promotion efforts could be better aligned across African countries to present a unified value proposition to global investors.
A potential obstacle, however, was the policy continuity across different government cycles in African countries, as well as the strength of institutional capacity, which were both fundamental for investor confidence, said renewable-energy company Yellow Door Energy South Africa CEO Forbes Padayachee.
She stressed the importance of regional collaboration and government support for skills transfer and community development, which Bridgestone South Africa MD Jacques Rikhotso agreed with, adding that African countries had the existing competitive advance of having abundant natural resources and a young population (60% of the continent’s population is considered young) – which represents significant market potential.
He emphasised the need for African economies to transform resources into marketable products and have industry involved in policymaking.
Transnet maritime services and manufacturing executive manager Tshwanelo Tswai concurred that policy conduciveness and quality control were challenges in many African countries, highlighting the need for policies that encouraged investment in the manufacturing sector.
He also pointed out the need for more skills development of locals to support the manufacturing sector.
Absa relationship banking manager Sachin Chanderdhev said South Africa’s manufacturing sector, which contributed 15% of GDP, had potential to create more jobs and accelerate growth through a supportive policy framework and ease of doing business.
He also highlighted the need for African countries to consider global trends and market demand, while using a regional approach to collaborate and enhance competitiveness.
“It is important to understand where each country excels in the manufacturing sector and for countries to collaborate on knowledge and technology transfer to build more skills capacity and increase efficiency.”
Zimbabwe Ministry of Industry and Commerce secretary Dr Thomas Wushe emphasised the important role of government as an initiator for investment and industrialising the economy.
He agreed with the other speakers about the need for a coordinated approach across African countries to attract global investors.
The challenge, he pointed out, was the creation of a unified investment policy for Africa and countries presenting a unified front to investors leveraging the continent’s natural and human resources and market potential. 