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Manufacturing

At the show in Johannesburg, companies and investors are encouraged to be part of Africa’s industrial renaissance. (Image source: Manufacturing Indaba)

According to the organisers of the upcoming Manufacturing Indaba Conference and Exhibition, running from 22-23 October 2024 in Johannesburg, Africa is rapidly positioning itself as a key player in the global manufacturing landscape

The continent, is offering unrivalled opportunities for growth and investment with manufacturing contributing more than 10.5% to Africa’s GDP. Led by nations such as South Africa, Nigeria and Egypt, there are significant strides being made in industries such as automotive, textiles and consumer goods. Moreover, the organisers noted that the increasing focus on industrialisation (prioritised by most nations), coupled with favourable policies and emerging trade agreement such as the African Continental Free Trade Area (AfCFTA) is creating an “ideal” environment for businesses seeking to expand their global footprint.

A manufacturing revolution

These market dynamics are spurring interest and excitement for the industry so that it now sits on the cusp of a manufacturing revolution.

Another facet at the forefront of this change are the emergence of special economic zones (SEZs). The Hawassa Industiral Park in Ethiopia, for instance, has become “a magnet” for foreign direct investment the organisers have noted. Specifically, the textiles and apparel industries have flourished around the zone.

This is a familiar theme across the continent, with other success stories including the growth of the automotive sectors, particularly in Morocco and South Africa. These two countries now nearly produce a combined one million vehicles a year.

There is also a general shift towards sustainable practices, in line with the global appetite for reducing emissions. The organisers have expressed that investments in renewable energy and green manufacturing are gaining momentum across the continent with a number of leading initiatives to reduce the industry’s carbon footprint. This is further making the continent an attractive destination for investors alongside the readily available workforce emerging from Africa’s rapidly growing population.

With the continent on the right road to become the next global manufacturing powerhouse, stakeholders are being encouraged to participate in the Manufacturing Indaba Conference and Exhibition in South Africa. Gathering industry leaders, policymakers and investors to discuss the future of manufacturing, it will serve as a platform for attendees to be part of the industrial renaissance currently underway.

Through the acquisition, Mauser is extending its existing production capacities and footprint in South Africa. (Image source: Adobe Stock)

Mauser Packaging Solutions, a global industrial packaging producer and provider of solutions and services, has acquired a plastic drum business in South Africa in order to extend its product offering and expand capacities to meeting growing regional demand

The business, previously owned by Nampak Products and Eliptotime PTY, specialises in manufacturing, selling and supplying plastic drums, including large rigid plastic drums in Pinetown, Kwa-Zulu Natal.

Peter Lucht, Mauser’s general manager in South Africa, commented, “We are proud to further expand our plastic capacity and portfolio. This acquisition enables us to offer our customers even greater security of supply and an enhanced portfolio of products.”

The new site produces UN-certified, tight-head and open-head plastic drums for use in the petrochemical, lubricant, ethanol, chemical, coatings, mining, and food industries. The facility holds ISO 9001 and ISO 14001 certifications and is able to consistently deliver high-quality packaging solutions, including Mauser’s Infinity Series product range.

The Infinity Series of products provides brands with sustainable packaging solutions that meet strict performance requirements while incorporating post-consumer resin (PCR), reducing carbon emissions, and diverting waste from landfills. Mauser’s Recolene PCR material is manufactured in-house from empty industrial packaging that has been collected through the company’s Recover Syst-M programme and reached the end of its usable life.

“This investment underscores our ongoing commitment to expanding our presence in this region and growing with our customers by delivering sustainable packaging solutions with unparalleled quality and customer service,” said Michael Steubing, president of Mauser’s international packaging business unit.

The initiative was unveiled at a meeting at the UIA head office. (Image source: UIA)

The Uganda Investment Authority (UIA) has revealed a new initiative to encourage traders in Kampala’s business hub, known as Kikuubo, to transition from trading in imported products to manufacturing them locally

Named ‘Transitioning Kikuubo Traders to Manufacturing’, the initiative aims to promote import substation to enable traders who have traditionally traded in imported products to seize import substitution opportunities and incentives that will come with this (such as zero tax rates, free industrial park land, tax holidays, and others).

The initiative was unveiled by Robert Mukiza, director general of the UIA, during a meeting at the organisation’s head office. Traders from Kikuubo and officials from the Global Competitiveness Initiative (GCI) and the Presidential Advisory Committee on Exports and Industrial Development (PACEID) were invited to learn more.

At the meeting, Mukiza explained that a special desk has been created under the Domestic Investment Division, full of work plans, targets, and timelines to ensure a faster transition of business people from trading to manufacturing. He added that traders (especially those in Kikuubo) have deeper knowledge of the business environment, and supply chains and have sizeable cash flow, key ingredients in the transition to local manufacturing of products the country imports.

“Domestic investors are crucial to Uganda’s industrialisation that is why it is UIA’s special mission to see more traders transition to manufacture of products they have been importing,” remarked Mukiza, adding that once many traders successfully transition to manufacturing, more will follow suit, hence widening the domestic investment base.

To fasten the trading-to-manufacturing transition, Mukiza noted that UIA is acquiring additional land in Namanve Industrial Park specifically to cater to the Kikuubo traders interested in going for manufacturing, adding that land is also available in other industrial parks across Uganda.
“If you are targeting markets like the Democratic Republic of Congo or South Sudan, you don’t need to set up your factory in Greater Kampala but could go to industrial parks in Nebbi, Arua, or Kisoro,” he emphasised.

Support for local business

Joshua Kassibo, a representative of the traders, said for a long time they had perceived UIA as favouring foreign investors but through sustained engagements, they are now enlightened about investment opportunities and incentives they have been missing.

“We previously thought investors were only foreigners, but now we know we can transition to manufacturing, and we are ready. The main issue is how to work with UIA to enable our transition to processing and manufacturing,” said Kassibo.

Meanwhile, the chairperson of the GCI, Daudi Migereko, urged Ugandans to look at what to produce, process, manufacture, and export competitively. “If you have been trading in a product for many years, it is time to start manufacturing it locally. Let us go with the new wave of import substitution,” he surmised.

The agreement was signed by Suraj Thampi, Alutec’s CEO, and Martin Deil, ClearVue Technologies’ global CEO. (Image source: ClearVue)

Smart building materials company, ClearVue Technologies has signed a manufacturing and distribution agreement with Alutec, Qatar’s largest glass processer, façade manufacturer and a group company under Aria Holding

In doing so, the company has extended its business into Indian, Middle East, and North African markets. As per the five-year agreement, Alutec will manufacture and distribute ClearVue Solar Visiion Glass, a product that integrated solar technology into building façades to enhance energy efficiency and sustainability in key markets. This offers environmental benefits and supports governmental sustainability targets.

“This agreement aligns with our growth strategy to partner with key manufacturers in strategic target markets,” commented Martin Deil, global CEO of ClearVue. “For the Middle East, Alutec is a prominent and well-respected leader in design, engineering, manufacturing, and installation for building envelopes.

“ClearVue offers the only high-energy clear solar vision glass on the market easily integrated into window manufacturing lines, helping building owners reduce carbon emissions while improving energy efficiency. We see Alutec as a strategic partner and we will pursue opportunities to collaborate on projects where ClearVue products offer substantial value.”

John Douglas, Alutec pre-construction director, added, “Our region is preparing for the future. Governments across the Middle East are heavily investing in renewable solutions to meet our growing energy needs in the region. India is also a key focus for our expansion plans. We are currently setting up manufacturing and distribution facilities in India, and we see ClearVue as a key part of those plans as we expand into that region.

“ClearVue’s technology uniquely provides our construction sector the technological tools needed to transform each individual building into a mini renewable energy hub – a remarkable achievement and one that will help our clients meet their energy needs and ‘net-zero’ goals. As part of Aria Holding, we bring additional resources and strategic support to this innovative partnership.”

Africa’s share of global manufacturing only sits at around 2% today. (Image source: Adobe Stock)

The emerging efforts to raise Africa’s share of global manufacturing have been explored in the latest issue of African Review

Manufacturing was a key topic of scrutiny in the African Development Bank’s (AfDB) recently-published ‘2024 African Economic Outlook’, which sought to influence inclusive growth across the continent. While noting that a “single-minded” focus on development through manufacturing should make way for advancing regional diversity and encouragement of wider sectors, it stated that developing manufacturing and reducing the size of exports of unprocessed raw materials “must be part of the economic transformation strategy of African countries.”

While the continent’s share of global manufacturing sits at a paltry 2% today, the development of the sector is still widely regarded as crucial to its ongoing industrialisation and future prosperity. By shaking off the post-colonial reputation as a feedstock for global industrialised economies, African nations can ensure greater value is captured from their vast pool of resources.

Here, a significant opportunity emerges in the form of the continent’s abundance of minerals critical to the energy transition. Already, Africa is positioning itself at the heart of global critical mineral production with countries such as DRC, for example, responsible for more than 70% of global cobalt output. Calls to maximise the reach of these resources are increasing in volume. Speaking at UNCTAD’s ‘Maximising Africa’s Potential’ event in Addis Ababa, UN Economic Commission for Africa’s deputy executive secretary, Antonio Pedro, remarked, “Imagine the potential if African minerals are processed into African batteries, installed into African cars that are driven across the continent and the world... This would accelerate the deployment of renewable energy and the electrification of transport systems on the continent, create decent jobs and make Africa a competitive hub for green industrialisation.”

Click here to read the full article in the latest issue of African Review, including the initiatives being undertaken to realise the green mineral opportunity and the future market for medical manufacturing.

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