A powerhouse in the making in Africa

Sub-Saharan area must use resources to expedite manufacturing

SUB-SAHARAN Africa, with its young population, dynamic growth and rapidly improving infrastructure, has the potential to become a manufacturing powerhouse in the years to come. This is according to Matthew Kirby, vice-president at Sage Enterprise for Africa and the Middle East.

Kirby said African countries from South Africa to Ethiopia to Nigeria were pinning their hope for economic growth and job creation on industrialisation.

He added, however, that first African manufacturers needed to boost efficiency, productivity and quality if they were to compete with low-cost producers in Asia, with hi-tech, integrated supply chains in North America and Europe as well as a new industrial revolution was rapidly transforming how and where goods were made, and the African industry needed to keep up.

“For example, advanced robotics and a range of innovative materials are making it cheaper and faster to produce even complex technical goods in factories across the world,” said Kirby.

He added that before jumping into advanced robotics or artificial intelligence, sub-Saharan Africa’s manufacturers should be looking at their business management systems to ensure they are fit for purpose. “Many of them are using legacy systems or even heavily manual processes, rather than integrated, enterprise applications. A robust business management solution can be a real game-changer, helping manufacturers meet the evolving challenges of today’s business world.”

Kirby said that, according to a recent Forrester report, manufacturers could realise up to 218% return on investment within four months by implementing effective business management solutions.

“Business management solutions enable manufacturers to meet the challenges of today’s business world, helping them to accelerate collaboration and reporting, providing real-time insight into costs and operational performance and providing information for smarter and faster business decisions. This, in turn, allows them to enhance efficiency, diminish costs, and increase sales and profitability,” Kirby said.

“Automated solutions and consistent processes lead to time and cost savings, easier collaboration and faster outcomes. Integrated reporting allows regular and real-time operational insights, enabling better, quicker business decisions. The right solution will allow African companies to consistently deliver and take advantage of new commercial opportunities,” he said.

The Sandton Convention Centre this week hosted the 5th annual Manufacturing Indaba, a two-day conference and exhibition which highlights the sector’s impact on job creation.

Trade and Industry Minister Rob Davies spoke on the state of manufacturing, the World Trade Organisation and the Industrial Policy Action Plan in Parliament. He said the manufacturing sector was fundamental in creating and securing jobs in the economy.