Africa has capacity to turn itself into future workshop of the world

Africa should be confident in showcasing the success it has already achieved in better manufacturing. As the continent continues to develop its manufacturing capabilities, it is essential to communicate these success stories to the world and show its potential as a goods-making powerhouse.

With a large youthful population and a growing manufacturing sector, Africa has the potential to become the future global workshop.

To attain this, regional governments must focus on providing skills relevant to the future of manufacturing, such as technology, automation, and data analysis.

By doing so, they can ensure that the continent is prepared to take advantage of the changing manufacturing landscape and remain competitive globally market.

For instance, Ghana is already leveraging its young talent pool to create tech-enabled manufacturing jobs, leading to increased productivity and exports.

In contrast, Asia, which has long been considered the world's manufacturing hub, is experiencing a decline in the sector's growth.

Countries such as China are facing challenges including rising labour costs, stricter environmental regulations, and an ageing population.

This presents an opportunity for African countries to attract manufacturing investment by offering cost-effective labour, favourable business environments, and abundant natural resources.

Kenya and Ethiopia, for example, have attracted significant foreign investment in their renewable energy and textile industries due to their competitive wages and favourable investment policies.

Africa has already demonstrated its potential in advanced manufacturing, particularly in the automotive and aerospace industries.

South Africa, for instance, is home to several global automakers, while Morocco has become a hub for aerospace manufacturing.

Furthermore, African countries are prioritising sustainability in manufacturing, with Kenya implementing green manufacturing policies and Rwanda investing in renewable energy to power its industries.

To gain a larger share of the global market, manufacturers in Africa must focus on reinventing their business models.

They have the potential to lead in their value chains by embracing new business systems that prioritise value creation. This is the key to successful growth strategies in today's global economy.

Product-centric innovation alone is not enough to gain a competitive edge. Manufacturers must also develop business models that enable them to create and capture value in new ways.

This can be achieved by combining connected products, customer knowledge, and the right ecosystem of relationships.

Forward-thinking manufacturers in Africa are already broadening their innovation efforts to include their own business models.

They recognise that this is crucial to their long-term success in the global manufacturing market.

By embracing new business models and collaborating with others in their value chains, African manufacturers can position themselves to become leaders in their industries.

The writer is the EY Eastern Africa Markets Leader. He also manages the EY-Parthenon strategy and M&A practice across Eastern Africa.