AFRICAN incomes are rising, and consumer and business spending is vibrant — but the continent’s manufacturers are still not taking advantage of dynamic home and regional markets. This is a large lost opportunity.New research from the McKinsey Global Institute finds that Africa could nearly double manufacturing output in less than 10 years, creating as many as 14-million wage-paying jobs.Overall, African economies have underperformed. Value added from manufacturing increased at a rate of 2.5% a year between 2000 and 2015, far weaker than Asia’s 7.4%. Today’s $500bn of output is heavily concentrated in five countries: Egypt, Morocco, Nigeria, SA and Tunisia. And manufacturers sell comparatively little to the rest of Africa — just 10%.But Africa could nearly double its output to an estimated $930m in 2025 — manufacturing output would grow at 6.4% a year, triple the rate achieved since 2000. Three-quarters of the opportunity to boost manufacturing comes from serving home markets — produ...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.