THIS TIME FOR AFRICA!

Over the past two decades, low-cost manufacturing has transformed China, India and a group of other developing countries. Now, it’s Africa’s turn. That will sound unlikely to the many people who see Africa as synonymous with extreme poverty, conflict and instability. But anyone who understands the nuances of the vast continent knows that African countries are well placed to grab a bigger share of global manufacturing in the coming years

- Kruti Bharadva

To understand Africa’s potential as a manufacturing hub, it’s important to stop seeing it as a monolith. The continent groups 54 economies and societies with variations as wide, if not wider, than those in Europe and Asia. Three of the five most fragile countries in the world are African, among the many nations there that suffer from high levels of corruption, violent conflict and low levels of education.

But then there are countries like Senegal, Rwanda, Mauritius, Cote D’Ivoire and Botswana that have a strong track record of economic growth, stability and education. Six of the 15 fastestgrowing economies in the world are in Africa and the continent has become a must-visit destination for the titans of the U.S. tech industry. African countries have talent in multiple languages and the youngest population of any continent. By 2055, the continent’s 15-24 year-olds are expected to be more than double the 2015 total of 226 million.

Investment in manufacturing in Africa has long been subdued by the region’s generally poor infrastructure and its sometimes deserved reputation for corruption and crises. Manufacturing’s share of African GDP has hovered around 10Y over the past decade. Africa as a whole only meets about half or less of its $130-170 billion annual infrastructure investment needs, according to the African Development Bank.

But there are signs of change, especially for the region’s economic stars. Between 2005 and 2014, manufacturing production in Africa more than doubled from $73 billion to $157 billion. The strongest growth has come in countries such as Uganda, Tanzania, and Zambia that have track records of prudent economic management and business-friendly reforms.