Tech innovations key to improving manufacturing

Countries globally have achieved high economic growth by positioning the manufacturing sector as a key growth engine. The sector has been identified as a major economic driver for sustainable economic growth, job creation, and poverty alleviation. According to the Kenya Association of Manufacturers’ guide; Kenya Business Guide, a sector deep-dive report, the manufacturing sector’s contribution to the Kenyan economy has stagnated at a rate of 10 per cent of the Gross Domestic Product (GDP). However, the focus of the sector in the Big 4 agenda has repositioned it and is expected to increase the country’s GDP by 15 percent by the year 2022.

The integration of manufacturing automation and data exchange to nurture innovations and the smart factory is emerging as a key driver for enhancing the sector. In the near future, factories will be controlled by virtual production lines that run systems and monitors to complete physical processes. In the last century, we have seen factories advance their operations, in the process leaving indelible marks in our manufacturing ecosystem. Going by the trends we are currently witnessing, we are also likely to see increased innovations in automation, Artificial Intelligence, and the Internet of Things (IoT).

As a country, we need to explore the application of technology and innovation in the manufacturing sector, and how this can accelerate our growth. The Big 4 Agenda envisages that the manufacturing sector will greatly contribute to the country’s GDP enabling it to increase from the current 9.2 percent to 20 percent by the year 2022. However, despite the strides we have made, the sector is yet to achieve its full potential.

This is because the industry still faces challenges that hinder its development. The current fast-changing world makes source markets for raw materials and products highly unpredictable. This puts financial pressure on many producers and hinders them from making progress. For instance, in the world we live in now, a particular product could be highly in demand but with time becomes less important at the invention of a new product.

Manufacturers are however taking action to mitigate these challenges in different ways including improvements to production processes. This has been mainly through the adoption of new technologies which aid in automating some of the processes and thus reducing the costs of production while delivering better products. Similarly, companies are making deliberate efforts to strengthen relations with their customers by making customer-centric decisions such as the manufacture of tailor-made products to suit different types of customers.

Additionally, with manufacturers having to contend with challenges of lack of proper infrastructure, electricity, and high taxes, most investors in manufacturing are keen to establish their businesses in Special Economic Zones (SEZs) that offer incentives. In line with Vision 2030, Kenya has established SEZs to spur economic growth in the country.

Konza Technopolis, as one of the SEZ and a flagship project of Vision 2030, has put in place a robust manufacturing strategy that will enable development of the manufacturing sector in line with the changing global needs and expectations. Apart from world-class infrastructure currently under construction, the Technopolis will also provide a research and innovation ecosystem that will allow businesses access to a highly-skilled workforce and innovations. This will allow manufacturing businesses to thrive in the technopolis by focusing on their core business.

Aside from that, Konza’s Master Plan ensures that the Technopolis achieves its objective through the adoption of concepts such as mixed-use and density control. This way, it hosts businesses that are in line with its vision of a smart, sustainable smart city. The authority, for instance, has designated 108 acres to industrialisation, light manufacturing, and agro-processing within Phase 1 to leverage Konza’s innovation ecosystem. Several key industries have also been identified as possible drivers of growth including Business Process Outsourcing (BPO), software development, data centres, disaster recovery centres and light assembly manufacturing industries.

Given the times we are living in, never before has the importance of technology been amplified to this extent.

Today, the world is grappling with the adverse effects of the Coronavirus disease (Covid-19) Pandemic, a crisis that has forced many businesses to adopt technological solutions in order to stay afloat.

This is an adjustment that will certainly stay with us for a long time. As a country, our sustainability and self-reliance can only be guaranteed through our ability to develop and adopt technological innovations.