The manufacturing industry includes the industries of transformation of goods, repair and installation of industrial equipment as well as subcontracting operations. What activities describe this sector exactly? Its usefulness for Africa? Its role in the dynamics of structural change and foreign direct investment?
THE ACTIVITIES OF MANUFACTURING INDUSTRIES IN AFRICA
They are diverse, from textiles to food and beverages. We can find products like computer software, electronics, electricity, tiles, roofs; pavers; tiles; bricks and briquettes; solar energy; the frames; recycling ink and toner cartridges; manufacturing; distribution of cosmetic products; food and therapeutic; kaolin, medicinal plants such as cashews, water, technology, the environment, etc. Services such as: training; telecom consultations; banking consultations, installation and maintenance in domestic and industrial refrigeration, recruitment, advice, management of IT systems; home security (fire prevention); import-export, distribution; drafting of acts and advice; advice, studies and electrical installations; technical advice assistance, commercial representation, service provision … without forgetting business support structures.
ADDED VALUE OF MANUFACTURING INDUSTRIES IN AFRICA
The cumulative stock of Chinese investments in the African manufacturing sector had increased by 10% in terms of value added at the end of 2011, reaching 2.4 billion dollars, knowing that in 2013, this sector represented 15 % of Chinese investments.
In Ethiopia, total investment inflows in 2013 stood at 2% of GDP. The manufacturing sector is the largest beneficiary of operating investment by level of investment and number of projects, at 76 and 41% of the total, respectively. It is also the leading sector outside agriculture in terms of job creation for the period 2008-2014, with a share of 28%.
In Rwanda, total investment inflows in 2013 stood at 1.5% of GDP, with more than half of the projects in operation.
MANUFACTURING INDUSTRIES AND FOREIGN DIRECT INVESTMENT.
The manufacturing sector is an entry point for industrialization and by attracting more Foreign Direct Investment (FDI), African countries can also benefit from skills development, management experience, technology transfer and integration into the value chains that accompany them. FDI from China to Africa, for example, is increasingly directed towards the manufacturing sector.
China, Turkey and India are the top three creators of manufacturing jobs, which attests to the importance of manufacturing FDI for a partnership which constitutes a formidable engine for the economic development of Africa.
An examination of the entirely new projects financed between 2003 and 2014 shows that it is still the manufacturing industries that come out on top, in terms of number of projects and volume of financial contributions.
MANUFACTURING INDUSTRIES AND STRUCTURAL CHANGE
Structural change implies economic reorientation towards more productive activities. The manufacturing industry is crucial in this process. Its continuous upgrading offers opportunities for growth, productive employment and efficient use of resources, according to the UNIDO 2013 Industrial Development Report. All these points raised when it comes to addressing the theme of the development of the African continent.
The report provides an informed analysis of the evolution and determinants of economic transformation. It is based on a comprehensive analysis of the role of manufacturing in structural change.
As the latter is at the heart of sustainable development, the report’s conclusions are invaluable to economic practitioners and academics who are interested in the key role that a dynamic manufacturing sector can play in achieving sustainable economic development and inclusive.
Read also: https://www.afrikatech.com/fr/entreprendre/quest-ce-que-lindustrialisation/