African buzz
An awakening giant
Industrialisation is considered the engine
of economic growth, leading to the
accumulation of physical and human
capital. In recent years, African countries
have witnessed steady economic growth
owing to their vibrant manufacturing
sectors. This has subsequently boosted
exports of many African countries,
supporting the diversification of their
exports mix, and reducing their reliance on
imports. Africa’s manufacturing sector has
only witnessed the onset of its potential.
While the cost of labour in developing
countries is on the rise, the World Bank
predicts that these manufacturing jobs
could migrate to Africa within the next
few decades.
African countries have taken commendable
steps to boost the manufacturing sector.
The launch of the African Continental Free
Trade Area (AfCFTA) in March 2018
aims to create a single market for goods
and services in Africa in order to facilitate
industrialisation. Similarly, the African
Union has committed to consider Africa’s
manufacturing sector and prioritise it in
its Agenda 2063. African governments are
establishing special economic zones (SEZ)
and developing flexible policies to attract
investment.
It appears evident that African nations are
persistently working towards repositioning
themselves by means of significant policy
changes. Governments, for instance, have
committed to providing Small and Medium
Enterprises (SMEs), manufacturing
entrepreneurs and businesspersons
demonstrating potential to contribute to
social upliftment, job creation and economic
growth, with varying financial support
options. Such incentives include small
business loans with relatively low interest
rates, government approved tax breaks,
cash grants and industrial financing. This
will ensure recipients gain the momentum
required to initiate their business operations.
Furthermore, governmental frameworks
are underway to restore the scarce
presence of marginalised communities in
Africa’s manufacturing sector. Tools and
programmes, such as the black industrialists
and preferential procurement, intend to
empower black and female manufacturers
10 AFRICAN MINING JULY - AUGUST 2019
Okavango Blue revealed
to establish resilient and prosperous
businesses in the industry.
If industry stakeholders remain
committed to their objectives, Africa’s
manufacturing output has the capacity
to exceed USD1-trillion by 2025. In
addition, approximately half of that
production will be exported to other
regions worldwide.
Moreover, Industry 4.0, otherwise known
as “The Fourth Industrial Revolution” is
being driven by IoT, machine learning,
artificial intelligence and big data. Industry
4.0 is already in motion in developed
economies, raising concerns as to whether
Africa is prepared to capitalise on this
progressive wave.
However, industry experts maintain that
as an emerging market, Africa is free
from infrastructure legacy issues, thereby
demonstrating a higher level of flexibility
than its developed counterparts. Considering
this, the Fourth Industrial Revolution
represents a significant opportunity
for African manufacturers, ultimately
placing the continent at the forefront of
the global economy. By embracing the
multitude of opportunities that stand before
African manufacturers, such as increased
political stability, growing investment
prospects, Industry 4.0, enforcement of
policies empowering black and female
manufacturers in addition to government
funding incentives, the continent can aspire
to compete on a global scale and realise its
true potential at long last.
All these developments are testimony to
the continent’s ability of attaining and
maintaining a thriving manufacturing
economy, which was on display at
the Manufacturing Indaba, held in
Johannesburg on 25 and 26 June 2019.
The Indaba provided a single platform for
governments, policy makers, manufacturers,
financiers, industrial leaders and production
managers to shed light on what the future
holds for African manufacturing within the
next five years. Up until recently, African
manufacturing has appeared dormant, but
the continent is an awakening giant that is
set to disrupt its competitive rankings within
the global sector.
A remarkable oval shaped blue diamond
weighing over 20 carats, has recently
been unveiled to the world by the
Okavango Diamond Company (ODC)
in Gaborone, Botswana, the biggest
blue diamond discovery ever made in
Botswana.
The diamond was discovered at
Botswana’s Orapa mine as a 41.11 carat
rough stone. Its unique and vibrant
blue colour, is created by the molecular
inclusion of the rare mineral boron,
which between one to three billion years
ago was present in the rocks of ancient
oceans during violent diamond-forming
volcanic activity.
“From the first moment we saw the
diamond, it was clear we had something
very special. Everyone who has viewed
the 20 carat polished diamond has
marvelled at its unique colouration,
which many say is unlike any blue stone
they have seen before. It is incredibly
unusual for a stone of this colour and
nature to have come from Botswana – a
once-in-lifetime find, which is about
as rare as a star in the Milky Way,” says
Marcus ter Haar, MD of Okavango
Diamond Company.
www.africanmining.co.za