Kenya: Manufacturing sector bounces back

The manufacturing sector in Africa is facing a mixed bag of challenges and opportunities as the global economy continues to navigate through uncertain times. In a recent interview with CNBC Africa, Andres Lindgren, CEO of Safal Group, shared insights on the state of the manufacturing industry in the region. Despite the anticipation of a post-COVID recovery, the industry has been grappling with various obstacles such as fluctuating steel prices, supply chain disruptions, and substandard imports. Lindgren highlighted the impact of these factors on the steel industry and other sectors, noting that the road to full recovery may be more prolonged than initially expected. However, he also expressed optimism about the potential for growth in the African market, citing the continent's large population, export opportunities, and the potential for local manufacturing to meet demand. While acknowledging the current challenges facing the industry, Lindgren underscored the importance of innovation and sustainability in driving future growth. He emphasized the shift towards value-added solutions and sustainable practices, such as modular construction and solar energy, as key areas of focus for the industry. Despite the looming risks posed by global economic uncertainties, including the crisis in Ukraine and geopolitical tensions, Lindgren remains positive about Africa's long-term prospects. Looking ahead, he highlighted the need for investments in skills development and infrastructure to support the industry's growth. However, he also cautioned against the influx of substandard products into the market, calling for stricter regulations to safeguard the sector from unfair competition. As more investors eye the African market for manufacturing opportunities, Lindgren emphasized the importance of balancing growth with quality standards and regulatory compliance to ensure a sustainable and competitive industry landscape.