Tag Archives: Manufacturing
Manufacturing: Latest News
Staff, 5:36 pm
Poor power supply is partly to blame for the Nigerian government’s inability to build a robust auto industry. That leaves vehicle imports as one of the only ways to meet local demand. Nigeria’s auto market is worth over $4 billion a year, but it does not translate into anything meaningful, a stakeholder said. Starting in 2015, stiff new tariffs were levied on new and used Nigerian vehicle imports. Imports fell more than 50 percent.
Dana Sanchez, 3:47 pm
Africa is increasingly attractive to global clothing brands, but poor infrastructure remains a challenge. East African suppliers need to upgrade their facilities and enter into long-term partnerships with buyers, McKinsey suggested. Buyers need to evaluate the region as a true strategic option rather than just a testing ground. U.S.-owned Tommy Hilfiger and Calvin Klein brands source 5-to-6 percent of global production from Africa. “We believe that production could grow… over the next five years to over 25%,” said the company CEO at the U.S.-Africa Business Forum.
Dana Sanchez, 11:35 am
Ethiopia moved closer to its goal of being an auto industry hub when South Korea’s Kia Motors signed a deal to start assembling cars there. Tax breaks and cheap labor are some of the attractions. For now, Ethiopia must compete with South Africa and Morocco. Egypt, Kenya and Sudan also assemble vehicles. Kia has faced stiff competition in recent years from U.S. and Japanese rivals while demand in emerging markets has cooled. “It is important to penetrate the African market,” a Kia boss said.
Dana Sanchez, 2:17 pm
Despite doom-and-gloom predictions by economists, this bit of good news for South Africa’s economy augments recent reports that South Africa regained its place as the continent’s biggest economy. Economic growth in the second quarter helped the country escape a predicted recession for the second time in seven years. The surprisingly strong growth mostly reflects a bounce back following the disaster of Q1, an economist said. Few expect the growth to be sustained.
Dana Sanchez, 9:12 pm
Mozambique has banned the export of whole logs outright from 2017, regardless of the species, in an effort to encourage local processing. China, the biggest importer of logs in the world, has been the driving force behind Mozambique’s illegal logging boom. Falling demand from China for timber exports has provided an opportunity for reform in Mozambique. The problem is, China wants the wood in raw form. There’s little incentive to invest in manufacturing in Mozambique.
Dana Sanchez, 3:05 pm
Land O’Lakes, one of the top dairy co-ops in the U.S., has partnered with Bidco, the No. 1 edible oil manufacturer in East and Central Africa, to create Bidco Land O’Lakes, an animal feed production business based in Kenya. Land O’Lakes is known for Purina animal nutrition, and chose Bidco for its market knowledge and distribution networks across East Africa. The U.S. business has done aid work in Africa for decades but evolved to an ownership role in 2015 with a South African acquisition.
Staff, 3:26 pm
In Africa, the big-hitting commodities have traditionally been diamonds, iron ore, gold and copper. But with the global energy landscape rapidly changing and disruptive technologies on the rise in 2016, many investors are turning to opportunities in specialist technology metals. The poster child for this trend has been lithium. An essential component in lithium-ion batteries used by the manufacturing and telecommunications sectors, lithium has tripled in price since the beginning of 2015.
Dana Sanchez, 11:16 am
Andrew Kio is helping bring back the African garment industry. Kenya’s garment industry employed 500,000 people in the 1980s. Today, it hires 20,000. In some developing countries, second-hand clothes make up the majority of clothing sales. Recently, several East African countries moved to ban them. Kio sees a business opportunity. Imported second-hand denim jeans made for Western and Asian body types don’t always fit Africans, he said. His company, Blacjack Jeans, produces 1,000 pairs of jeans a month.
Staff, 12:02 am
You’d be hard pressed to find a country in the world that has cheaper labor than Ethiopia. However, manufacturing as a share of GDP in Ethiopia is 5 percent, well below the African average of 10 percent. The country also scores below the African average on diversification, export competitiveness, productivity and tech upgrading. Despite this, it’s not a long shot to predict that Ethiopia will soon catch up with countries like China and Vietnam in some low-tech manufacturing industries. These are industries for which labor costs are very important. Beyond these obvious industries, there are reasons to believe Ethiopia might be on the right track to catch up with more advanced economies.
Dana Sanchez, 3:02 pm
Some small and medium-sized Indian pharmaceutical companies must wait six-to-eight months to get paid as currency liquidity issues plague African oil-exporting countries. China worked out an agreement in April with Nigeria to use the yuan as the trading currency. In 2012-2013, in the wake of U.S. and U.K. sanctions, India worked out a barter deal with Iran using the rupee as trading currency. “We can work out something similar with countries like Nigeria … Importers now no longer need to buy the U.S. dollar,” an Indian stakeholder said.
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