The state of manufacturing in Africa

Manufacturing in Sub-Saharan Africa is a sector filled with opportunities for growth and development, despite the challenges brought about by the COVID-19 pandemic. In a recent interview with CNBC Africa, Mervyn Naidoo, Group CEO of ACTOM and Chairman of the Manufacturing Circle, discussed the current state of manufacturing on the continent, highlighting key sectors, challenges, and the potential for regional supply chain development. Naidoo emphasized the impact of COVID-19 on global supply chains, leading to bottlenecks and increased logistics costs. However, he also pointed out the opportunities presented by regional supply chains to stimulate economic growth and job creation. With the Africa Continental Free Trade Agreement creating a single market and consolidating demand, Naidoo discussed the potential for industrial hubs to leverage the continent's population size and stimulate growth in various sectors. One example highlighted was ACTOM's establishment of an industrial hub in Kenya to serve the East African market, demonstrating a model for transferring technology and intellectual property to drive industrial growth and employment in the region. As Africa focuses on industrializing the continent and creating jobs, the conversation around the potential for industrial hubs to impact GDP growth and local economies becomes increasingly relevant and promising.