Can Africa leapfrog into industry 4.0 and the age of the ROBOTS?
While Africa is still grappling with and taking time to resolve many fundamental issues around its economic development, the world is moving at a faster and faster pace, especially where the digital economy is concerned.
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Industry 4.0 is about the next wave of industrialisation and advanced manufacturing that will encompass the latest cuttingedge and disruptive technologies. Industry 4.0 is already starting in countries where there is a very strong manufacturing sector, like China, Germany, Japan, South Korea and the US
Africa should not expect that modern manufacturing will create a massive number of jobs. Instead, the future of manufacturing will not only be for those African countries with highly skilled labour, it will also require them to develop the necessary competencies among their labour forces for it to take place. China and manufacturing in Africa In the 1980s, China experimented with the setting up of the first four foreign trade-oriented special economic zones (SEZs) in Shantou, Shenzhen, Guangdong and Xiamen
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with Chinese and NORTH AMERICAN companies about Reasonable Industry 4.0 from, Do you have any ideas about relationing African businees with coming Industry 4.0?
Why the UK must invest in smart factories
Where does the birthplace of the first industrial revolution stand in the race to be at the forefront of the fourth iteration?
A quarter of manufacturers are already moving to implement Industry 4.0 in their facilities, while 62 per cent are planning to do so
Mr Cummings believes combining the interpretation of industrial data with the UK’s considerable strengths in service industries is the way to get ahead in Industry 4.0.
But where is the capital for manufacturers to upgrade going to come from? Since the significant amounts of cash are needed to upgrade facilities for Industry 4.0,
On this bumpy (and expensive) road toward industrialisation of their economies, the MEA region has to deal with a new industrial revolution called Industry 4.0
Navigating the Middle East’s perfect storm
The Middle East Industry 4.0 study shows that digital transformation could bring about an additional $16.9 billion annual revenue for companies in the Middle East from 2017 to 2021 as well as an additional $17.3 billion in annual cost savings and efficiency gains.
The pace at which companies in the Middle East expect to accrue benefits from Industry 4.0 investment leads half of them (51%) to estimate a return on investment (ROI) timescale of two years or less (figure 7). Just over a third (37%) anticipate a longer timescale of two to five years but relatively few (10%) think that it will take any longer than five years for Industry 4.0 investments to pay for themselves.
View from the Middle East & Africa: Digital revolution must not ignore SMEs
One of the few aspects that the very diverse countries of the Middle East and Africa (MEA) region have in common is their desire for a strong manufacturing sector. While some countries see the solution to high unemployment rates in manufacturing, others aim to raise their export quota, and still others want to diversify their economy.
The United Arab Emirates, Saudi Arabia, South Africa and Kenya have been very successful with their strategies of developing a competitive manufacturing sector by setting up free-trade zones, attracting FDI or through intensive government support.
Although concerns over oil and geopolitical stability have caused investment in the Middle East and North Africa (MENA) region to fluctuate immensely, the sheer pace of the development can result in significant opportunities.
China’s private enterprises dominate ‘Go Global’ era 4.0
The deals are merely two key investments by Chinese enterprises exploring the global market in the country’s “Go Global” era 4.0, a period in which private companies are becoming the main driving forces.
The key to getting more investment in innovation will be from government and private sector partnerships
Big investments are being made in Industry 4.0 initiatives.
China is embarking on and rapidly adopting the Industry 4.0 trends
With “Go Global” era 4.0 coming, Chinese private enterprises upgraded their positions within global value chains to achieve higher value-added.
Chinese Investments in Africa: “Chopsticks Mercantilism”?
We have discussed this Africa China relationship at length because this turn of events is unfortunate and must be condemned in no uncertain terms. Trade with China or any other foreign nation should bring benefits to both parties. But these attacks against the Chinese are likely to continue as long as the trade deals do not benefit the people in some African countries and it is difficult to argue if more trade with or investment from China will help the African poor.
Do you agree with this?
Ayittey is a native of Ghana and obtained his PhD from the University of Manitoba, Winnipeg, Canada in 1981 with a GPA of 4.0. He taught at Bloomsburg University, Bloomsburg, PA from 1985 to 1988. He was selected as a National Fellow in 1989 by the Hoover Institution at Stanford University, Stanford California.
Among our own middle-market clients, we notice there’s a lack of understanding and appreciation of what Industry 4.0 can offer, and how this is going to revolutionise the market. This is a key factor that’s holding back investment
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Our research shows that first movers are transforming into digital enterprises. Industrial companies need to act now to secure a leading position in tomorrow’s complex industrial ecosystems.
Industrial companies from all sectors across the globe are getting down to business with Industry 4.0.
In Durban, home to the largest tribe in South Africa and largest diaspora of Indians outside of India, we will explore how to build a shared understanding and nurture collective responsibility to navigate the transition from Africa 1.0 to Africa 4.0 while strengthening our united socio-cultural heritage.
Pieter Theron, PwC Partner Advisory Services & Head of Industry 4.0, South Africa, says: “The 2,000 companies that we surveyed, including the 61 in South Africa, are expecting to significantly increase their overall level of digitisation. While just 33% rate their company as advanced today, that number jumps to over 70% looking ahead to 2020.
This year, Africa is expected to launch the Continental Free Trade Area (CFTA). The key objectives of the CFTA are to boost intra-African trade and investment by easing the movement of goods and people on the continent and to improve Africa’s competitiveness and economic growth by reducing the cost of doing business. Intra-African trade stands at about 15% of total volume, compared to 60% of intercontinental trade in the European Union, 53% in East Asia, 41% in North America and 20% in Latin America and the Caribbean.
Most companies believe they will see a return on investment (ROI) within two years or less for their Industry 4.0 projects. Just over a third of companies anticipate a longer timescale of three to five years, but very few think that it will take any longer than five years for Industry 4.0 investments to pay for themselves. Currently, South African companies invest 5, 2% in digital operations solutions and expect to invest up to 6, 8% over the next five years.
Achieving this milestone in AFrica 4.0 about African intra trade, will begin to make regional integration a reality. The next step will be to make it easier for Africans to travel within Africa without a visa.
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