Tag Archives: Manufacturing
Manufacturing: Latest News
Dana Sanchez, 4:10 pm
For many Western companies, Africa is a fresh start — an opportunity to build facilities and processes that are environmentally friendly and safe. And don’t forget the tax breaks. Manufacturing in Africa is expensive, training and the quality control are expensive. Most apparel will continue to be made in Asian countries where labor is still relatively cheap and infrastructure, in place. But in China, the world’s apparel manufacturing leader, wages have increased 80% since 2010.
Opinion: Trump’s ‘America First’ Policy An Opportunity For China To Access AGOA, US Markets By Manufacturing In AfricaBy Dana Sanchez, 9:52 am
The main target of Trump’s America First policy is China, the world’s top industrial exporter. China has positioned itself as the world’s factory. Africa does very little trade with the U.S. and is no threat to U.S. jobs. Because China is Africa’s biggest export market, the America First policy will hurt Africa. The export-oriented China creates wealth by exporting manufactured goods to the U.S. and other Western markets. China can circumvent Trump’s efforts by relocating some of its manufacturing to Africa to take advantage of AGOA and access the U.S. market through Africa.
Dana Sanchez, 10:35 am
Ethiopia’s shoe-making industry is getting more attention in the U.S., where 87 percent of imported footwear is from China. A local group of 10 Ethiopian leather and footwear manufacturers have joined forces to supply footwear products destined mainly for the U.S. It’s part of a pioneering effort to persuade global buyers that Ethiopia is an alternative sourcing market to Bangladesh and Vietnam. Ten major brands visited Ethiopia recently. Most are are represented by the 1,000-member American Apparel and Footwear Association.
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.
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