Africa Claims Economic Growth- Is Manufacturing the Cause?
Kegler Brown Global Business News June 30, 2014
China has claimed the stamp of creation on most products we see today but is Africa ready to take that title?
Not quite yet but Africa has seen continued economic growth the past few years, holding 1.5 percent share of the total manufacturing output worldwide. BBC News Africa shares that Europe, North America and the Asia-Pacific hold top spots for manufacturing output and although Africa has seen growth, there is little structure.
Can Africa become the next China, when it comes to manufacturing? It sure can but only if certain proactive steps are taken by the African governments. Africa has a substantial unemployed population who is eager to find a living. With steps like (1) providing skilled training to the labor; (2) creating attractive policies for foreign direct investments into Africa with a focus on local manufacturing; and (3) providing a competitive rate to undertake manufacturing of products, Africa can potentially be put on the map as the go-to destination for manufacturing and sourcing. With increase in price sourcing of products from China that are cutting into profit margins, U.S. companies are looking for viable alternatives. Africa could become that alternative to explore, if the manufacturing sector is given the right impetus, and investment in that sector is prioritized by the African Governments.