Africa is a continent full of opportunities for growth. One of the ways to propel development in Africa is through a robust manufacturing sector. An industry widely viewed as a path to economic growth on the continent. For this reason, the African Continental Free Trade Area was launched in 2018. Manufacturing holds potential as Africa navigates the path to recovery post-pandemic. Experts project that the sector could hit 666.4 billion dollars by 2030. That’s over $200 billion more than it did in 2015.
Mohammed Dewji is Africa’s youngest billionaire. He said, “we need to do value addition. And by doing value addition, you don’t use as much as foreign currency that you would otherwise use, and you would employ a lot of people. So, I think manufacturing is the core, I mean, of importance for the African continent.’’
Trading under the African Continental Free Trade Area has kicked off. And Africa’s largest economy is planning a leading role in this $3.4 trillion market. Nigeria took a while to sign up to the agreement. However, when it finally did, the most populous nation on the continent said it cannot afford to be left out.
Local Chief Economic Strategist about the West African nation’s preparedness to harness the dividends of this free trade zone. Professor Ken Ife at the New Partnership for Africa’s Development (NEPAD) Nigeria said that, ”we are still the 8th largest producers of oil in the world and the biggest in Africa. There are 90 million SMEs (Small and Medium Scale Enterprises) in Africa, forty five of those are in Nigeria. If Nigeria could have 50% of SMEs in Africa even though our population is just 18% and GDP is 18% of the whole of Africa’s GDP, it does tell you that entrepreneurship is a comparative advantage for Nigeria”.
In the Republic of Congo, some relief is provided for those who rely on electronic products to do business. Importation of computer equipment will now be free of taxes and duties. This means local students can purchase laptops at lower prices for example. It’s part of a move that Brazzaville hopes will boost its digital economy.
Expanding small-scale activity in manufacturing is an important part of the development process. In sub-Saharan Africa, this has been made possible by an expanding market for domestic produce. Assuming the pandemic has not undermined this too badly, there is no reason why this trend should not continue in the decade to come.