The African Market- A diamond in the rough?
Africa, the world’s second-largest continent, is a land of breathtaking landscapes, cultural diversity, and an abundance of untapped potential. Potential in the form of resources, industries and human capital. In recent years, the continent has been undergoing a transformative journey, slowly but steadily emerging as a global economic and geopolitical player.
Africa is known to be blessed with abundant natural resources, including minerals, oil, gas, arable land, and 10% of the planet’s internal renewable freshwater resources. The continent’s resource wealth presents significant opportunities for economic diversification and development, particularly in industries such as agriculture, manufacturing and renewable energy.
The Green Fields
Africa boasts one of the youngest populations globally, with over 60% of its inhabitants under the age of 25. This population demographic has the potential to be a driving force for economic growth and innovation. The continent is experiencing a surge in entrepreneurship and innovation.
With the establishment of the world’s largest free trade area and access to a 1.2-billion-person market, Africa is forging a new path for development, capitalizing on its resources and the current and evolving of its people. Business start-up ecosystems are thriving in cities like Lagos, Nairobi, and Cape Town. These economic hubs are fostering creativity, attracting investment, and generating employment opportunities. The African entrepreneurial spirit is proving that local solutions can address local challenges.
In Rwanda, a series of projects with a total investment of $300 million have been pivotal in enhancing the quality of education and nurturing a skilled labour force. A significant expansion of classrooms has taken place, with over 22,500 new classrooms constructed, featuring accessibility features such as wheelchair ramps. This expansion has enabled an additional 68,000 Rwandan children aged 5 to 14 to access school within a two-kilometre radius, thereby reducing travel times. Consequently, the primary student-to-classroom ratio has improved, enhancing student-teacher interaction and the quality of instruction. Africa is making progress in ensuring the youth are ready for the future.
Omron is committed to empowering the youth of Africa by joining hands with local forces to ensure the fostering of entrepreneurship and innovation through knowledge sharing and support. The company wants to inspire and enable young Africans to drive technological advancements and economic growth in their communities.
Micro, Small, and Medium-Sized Enterprises (MSMEs), which constitute most employment providers in the region, have faced substantial challenges post-pandemic. Recently, the World Bank has been scaling up public works and urban programs in countries like the Central African Republic and Kenya to facilitate job creation in low-income communities and provide livelihood support. At the same time, the International Finance Corporation (IFC), is working to increase financing for small businesses, develop digital infrastructure, sustain agriculture supply chains, and provide working capital to local manufacturers.
More than Mining
Africa’s economic potential extends far beyond its mineral wealth. The continent is home to a wide range of industries, including pharmaceutical manufacturing, green energy, food and commodities production, and a burgeoning automotive sector, all of which offer promising avenues for investment. And talking about investment- there’s a multitude of investment opportunities available to those with the vision and commitment to engage in this green field.
The International Development Association (IDA) is actively involved in initiatives aimed at strengthening social infrastructure across various regions of Africa. One such example is the establishment and expansion of healthcare facilities such as clinics, which are instrumental in improving access to essential medical services. By investing in social infrastructure, the IDA is fostering an environment in which communities can thrive, ensuring that Africa’s diverse industries can continue to grow and flourish. Making the continent an increasingly attractive destination for investors looking to invest beyond mineral resources.
Omron contributes to the development and advancement of its people and industries. Africa through its automation and technology solutions. Providing smart infrastructure solutions for urban planning, energy management, and transportation, Omron is assisting in creating sustainable and efficient cities. Omron plays a pivotal role in building resilient and technologically advanced industries and communities that cater to the evolving needs of African communities.
By the end of 2022, the World Bank’s Africa human development portfolio included 232 projects valued at $34.3 billion, with 79 human development projects, totalling $8.2 billion, approved in the fiscal year 2022 alone. Since the launch of the Africa Human Capital Plan in 2019, the World Bank has committed over $11.5 billion to initiatives championing the empowerment of women. Collaborating closely with governments, regional institutions, and development partners, the Bank has expanded multi-sectoral programs that offer immediate and long-term solutions aimed at investing in women and girls.
Striking Gold
African countries are increasingly recognizing the importance of regional integration and trade. Initiatives like the African Continental Free Trade Area (AfCFTA is a project of Agenda 2063: The Africa We Want, and it represents African countries stepping towards a unified market across the continent as of September 2023, a total of 54 African Union (AU) member states have signed the AfCFTA agreement.
This initiative aims to facilitate the free movement of goods and services throughout Africa, creating a more competitive position for the continent in the global market space. This has the potential to boost intra-Africa trade by 52.3% through the elimination of import taxes. Removing tariffs on intra-Africa trade will also simplify cross-border trading and empower African businesses to cash in on the continent’s growing market. As a result, AfCFTA is projected to grow the African economy to an impressive $29 trillion by the year 2050, ushering in a new era of economic growth and cooperation across the region.
Omron is supporting the “One African Market” idea because it aligns with the company’s commitment to fostering economic growth, technological advancement, and sustainable development across Africa. By promoting a unified African market through initiatives like AfCFTA, the company recognizes the potential for increased trade, investment, and economic collaboration. This not only creates new opportunities for businesses but also facilitates the transfer of technology, knowledge, and expertise that can accelerate Africa’s industrialization and overall development.
Africa is making steady progress towards achieving the United Nations Sustainable Development Goals. By prioritizing trade and sustainable development in the areas of healthcare, education, infrastructure and farming, these countries are setting the stage for long-term economic growth and social progress.
It is worth noting that African nations have historically shown remarkable resilience in the face of challenges, including political instability, health crises, and climate change. These experiences have equipped the population with valuable skills in adaptation and problem-solving, which can be harnessed to address future uncertainties.
A time to shine
Africa’s potential is no longer a hidden treasure but a beacon of hope and opportunity on the global stage. As Africa’s leaders, entrepreneurs, and innovators prioritize their continent and invest in its people, resources, and infrastructure, it is positioning itself to play a pivotal role in shaping the 21st century.
Omron Automation has been committed to driving development across Africa since the opening of its first office in Johannesburg, South Africa. With a portfolio of cutting-edge products, custom solutions and expertise, Omron will continue to contribute to the economic and social development in Africa.
Omron’s automation and robotics technologies can enhance manufacturing processes, increasing efficiency and productivity in various industries. This can lead to the creation of more job opportunities and the growth of local economies. The company’s commitment to sustainability aligns with Africa’s growing focus on renewable energy and environmental conservation and Omron can support the development of clean energy solutions and eco-friendly technologies to mitigate climate change impacts.
The company’s solutions can play a crucial role in optimizing supply chains, enhancing manufacturing processes, and improving infrastructure, all of which are essential components of a thriving continental market. By supporting the “One African Market,” Omron contributes to the region’s economic integration, job creation, and improved living standards, ultimately fostering a brighter future for African nations and their people.
Omron has the potential to be a catalyst for positive change and progress in Africa through its technological innovations and partnerships with local stakeholders.
In the coming years, the world should keep a close eye on Africa, as its potential unfolds, promising a brighter future for its people and contributing to global progress.
Written for Omron
