Manufacturing in Africa faces several key challenges in 2025, impacting growth, competitiveness, and sustainability. The manufacturing Indaba has shared some of the top issues:
- Supply Chain Disruptions & Logistics Challenges
- Ongoing global supply chain disruptions, including shipping delays and high freight costs, affect raw material availability.
- Poor infrastructure (roads, ports, and rail networks) continues to increase transportation costs and inefficiencies.
- Energy Supply & Costs
- Unreliable power supply and high energy costs remain major barriers, especially in regions with frequent blackouts.
- The transition to renewable energy is progressing, but many manufacturers struggle with the upfront investment costs.
- Access to Finance & Investment
- Limited access to affordable financing hinders the expansion and modernisation of manufacturing facilities.
- Many small and medium-sized manufacturers (SMEs) lack the capital to scale production or adopt new technologies.
- Trade Barriers & AfCFTA Implementation
- The African Continental Free Trade Area (AfCFTA) offers opportunities but faces slow implementation, bureaucracy, and inconsistent regulations.
- Tariff and non-tariff barriers continue to affect cross-border trade.
- Skills Shortages & Workforce Development
- There is a significant gap in technical and digital skills needed for advanced manufacturing and Industry 4.0 adoption.
- Many manufacturers struggle to find skilled labour while automation and AI reshape workforce demands.
- Technology & Industry 4.0 Adoption
- Slow adoption of smart manufacturing, automation, and digitalisation due to cost and lack of expertise.
- Many businesses still rely on outdated machinery and processes, reducing efficiency and competitiveness.
- Climate Change & Sustainability Pressures
- Growing global and regional pressure to adopt sustainable and green manufacturing practices.
- Regulatory changes, such as carbon taxes and environmental compliance, increase operational costs.
- Political & Economic Instability
- Currency fluctuations, inflation, and political uncertainty in some African countries affect investment and business confidence.
- Regulatory unpredictability discourages long-term manufacturing investments.
- Competition from Imports & Counterfeit Goods
- Influx of cheap imports, particularly from Asia, undercuts local manufacturers.
- Counterfeit goods and intellectual property challenges hurt the competitiveness of African brands.
- Access to Local Raw Materials & Value Addition
- Many African manufacturers rely on imported raw materials due to limited local processing industries.
- The need for beneficiation and value addition to local resources remains a priority to reduce dependency on exports of raw materials.
Join the Manufacturing Indaba as they unpack these discussion points and find solutions to the challenges – 15-16 July at the Sandton Convention Centre - www.manufacturingindaba.co.za
