Manufacturing in Africa 2014
Manufacturing in Africa 2014
There are significant issues facing the manufacturing sector in African countries, the most critical being lack of access to an effective and efficient labour force, and inadequate infrastructure on the continent. In addition, Africa is seen as a continent of conflict, corruption and instability, none of which is conducive to long-term capital investments.
Rising fuel and electricity prices also continue to impact Africa’s manufacturing sector adversely. In most parts of West and East Africa, backup power systems (diesel-powered generators) are used by manufacturing companies as their main energy source. The reliance on higher-priced electricity for production processes inhibits African manufacturing companies from competing effectively with Asian and developed world counterparts.
KPMG’s recent 2014 Manufacturing Africa sector report explores the key drivers in the manufacturing sector, including infrastructure, sourcing products locally, labour market, capacity for innovation and government initiative, amongst other topics.
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