THE KEYS TO SUCCESFUL MANUFACTURING IN AFRICA

I believe that manufacturing is the only panacea for sustained growth in many African economies. If you are a Manufacturer or you intend to start production in any African country; most especially if you have to import part of your raw material.

Here are my critical experience takeaways that you need to succeed in Africa. These are peculiar to sub-Saharan Africa and may not apply to other climes.

1. Hedge your working capital by holding it in USD and consider a financial instrument called SBLC
2. Research your target market and spend the time and money: this should be between 1-3 years of research
3. Ensure you have adequate working capital to run at full capacity
4. Buy a high-quality machine and get it professionally vetted by a 3rd party or experienced Engineer in the industry
5. Invest in a well thought out factory that is safe for workers and handling of your product and raw materials.
6. Make sure its high-volume manufacturing as this will reduce your unit cost and enable you sell at a lower price
7. Investment in the right power infrastructure: one that is sustainable in your environment
8. Setup a good finance, production and sales team
9. Get international partners who are more experience in the industry to guide you
10. Look for good and experienced stakeholders who will buy into the vision

Import substitution and continued backward integration is the only way Africa can keep its wealth and continue to create it; those who invest now will be the power base of the tomorrow’s economies. It is clearly a tough business to get into; however, it is the only way to get the majority of our people out of poverty.

                                               Copyright ?Wemy Industries 2020

About the Author Paul Odunaiya is the Managing Director of Wemy Industries Limited, an indigenous manufacturer and distributor of Dr. Browns and Nightingale brand in Nigeria. For any question or enquires, you can reach me at [email protected]