ACS harnessing the untapped manufacturing sector of the Nigeria economy

While many developing regions industrialization has started to plateau, Africa contains a wealth of favourable factors- specifically the availability of low-cost labour and an abundance of natural resources and raw materials-that shows a revolution in manufacturing is imminent.

As a result of the large amount of capital that is necessary for joining and operating in Africa’s manufacturing sector, foreign businesses and investors have tended to dominate the market since the colonial period.

Records show that Foreign Direct Investment (FDI) in manufacturing has been relatively low, but has begun to increase at a fast rate in recent years. As a matter of fact, manufacturing is now the “top business function in the region by capital investment”, as it has received almost one-third of total FDI to the region which is second to the oil and gas sector. Alliance Cooperative Society is positioned to maximally contribute its quota in the growth of the manufacturing sector in Africa.

Africa’s competitive advantage in manufacturing is currently being driven by its demographic features and abundance of resources. This means prime opportunities for investment are currently concentrated in industries that are either labour-intensive or that require inputs of raw materials that can be sourced locally which may include agricultural and mineral products.

It is imperative to know that the manufacturing sub-sectors that have benefitted the most from the rise of the FDI in recent years include software (up 72%), auto components (133%), industrial and business machinery (378%) and chemical production (2000%). Alliance Cooperative Society while ensuring there is continued adequate investment in these sectors would also explore other sectors that need attention.

Growth in manufacturing in the coming years will be driven by increasing linkages among African countries and with the other parts of the world and ensuring that consumer markets on the other continents grow.

Experts predict that the fastest growth over the next decade will occur in subsectors like agro-processing with a projected revenue increase of $122 billion, cement production with a projected revenue increase of $72 billion, and clothing and footwear with projected revenue of $27 billion. These are the sectors Alliance Cooperative Society is focusing on to ensure more jobs are created and the economy of the African Continent records exponential growth.

Many governments in Africa have been instrumental to the growth of the sector so far by reducing policy-related constraints and even implementing policy measures specifically intended to improve their attractiveness to investors. Alliance Cooperative Society is geared towards assisting in any way possible to ensure the right investments by its members locally and in the diaspora are carried out seamlessly to facilitate the growth of the manufacturing sector.