Siemens in conjunction with Frost & Sullivan, have put
together a comprehensive research project outlining the current state of key
industries across the continent and identifying challenges and opportunities.
According to a release by APO Group,
made available to OpenLife,the study, named ‘The dawn of
digitalization and its impact on Africa’, considers growth predictions and
where the adoption of smart technology would be most beneficial in expanding
industries to drive sustainable growth.
For the purpose of this study, focus was placed on four key
sectors: Water, Manufacturing, Mining and Minerals, and Food and Beverage.
Some of the key findings in the report are the adoption of digital
technologies, innovation as well as a range of digital customer offerings are
expected to remain varied across industries, markets and geographies. The
extent and impact of digital technologies is also expected to vary, favouring
businesses and industries that seek relevance and increasing contribution in
international markets in addition to existing domestic markets.
Also, the finding reveals that while advanced analytics and digitalization are witnessing growing adoption across certain industry sectors, such as the automotive sector, there is a real opportunity for adoption of these across industry sectors such as the mining and food & beverage industry which are significant contributors to major African economies.
In manufacturing, while the most mature in its transformation and adoption of digital technologies in Africa, remains a marginal player struggling to make a bigger impact on country GDPs. The question governments need to ask themselves is how they align a ‘here-and-now’ emphasis on job creation with the necessary focus on digitalization. This will enable Africa to create a niche within the global economy. If we fail to pro-actively select our place within the global manufacturing industry, we run the risk of continuing on this path of non-industrialization.
For water industry,
expenditure in water infrastructure has been low when compared to the global
average. Inadequate investment in infrastructure coupled with poor water
utility management has resulted in a greater need for development of the water
sector.
The mining industry which has been witnessing subdued
investment, rising cost pressures and increasing labour issues, a combination
of mechanization, efficient extraction of resources and better use of data can
make it easier for mine operators to cut costs and create a leaner and more
efficient mining operation. As such, the successful incorporation of technology
will be possible through collaborative efforts of technology providers,
industry, research institutes and organizations that work for uplifting the
mining industry.
A stable supply of electricity is critical for digitalization to flourish. By providing high levels of infrastructure and power supply, Africa will be able to attract the necessary investment across various industry sectors.
The urban population in Africa is expected to grow to 56% in
2050, from 35% in 2010. This rapid urbanization will require robust infrastructure
to ensure these expanding cities are hubs of growth and commerce, and not still
trying to catch up with basic necessities.
According to Ralf Leinen, Senior Vice President Digital Industries for Southern
and Eastern Africa, “For the first time in history we have an incredible
opportunity to use smart technology to transform entire economies at an
unprecedented rate. Africa needs to get efficient strategies in place now in
order to succeed.”
In the wake of changing business dynamics, rapidly evolving technology and
increasing competition, collaborative efforts between governments, industry,
businesses (local and international), labour and academia is vital for creating
an environment that is conducive to developing sustainability of local businesses,
encourages technology upskilling, innovation, knowledge sharing and
execution.
The findings from the study are just a starting point. Siemens hopes it will
begin a dialogue and provide a framework to some of the unique opportunities
that exist.
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