African businesses are competing in the global market. This means that businesses in African need investments to grow and expand.
Even though many businesses struggle in Africa, there has been an increase in investments in African business over the last few years. There is still hope for Africa to do great things. This hope is being carried by some businesses operating in the 10 industries which will be highlighted in this article.
The narrative can change only if we put in place appropriate measures that can help African businesses compete in the world market.
10 Industries That Put Africa On The World Stage
1. The Textiles Industry
The textiles industry has been one of the industries that put Africa on the world stage. This industry is gradually taking over the global market.
We could talk of Africa countries like Ethiopia, Kenya, Uganda, Tanzania, etc. who produce garments and apparels out of cotton. These garments and apparels are normally exported to the global market for sales and revenue.
The Textiles Industry Needs A Lot Of Investment To Boost The Industry
Although Textiles are one of the needed commodities in the market, we need to add value to the textiles products. This will enhance the competitiveness of the textiles industry. A lot of investments have to go into the Textiles industry in order for it to improve.
The signing of the African and Growth Opportunity Act by the US has granted access to many Africa countries like Lesotho, Malawi, Guinea, Gabon, etc to export their textiles products to the United States of America. Investments like AGOA, Fashionomics Africa, Investment Promotion support projects from Banks and other investments packages boost Africa’s textiles industry in the global market.
2. Mobile And Software Applications Development
Africa’s technology sector is also doing its best to compete with the technology sector of the western world. Nigeria is doing great in that sector by developing applications. Africans companies like M Pesa Fedigroup, Inzone Adlink, Safeboda have developed various applications.
Investments in the development of apps could also put Africa on the world stage to compete with foreign apps like Facebook, Twitter, Instagram and so on.
We could also talk of African mobile apps like PesaCalc, Wundrop, Slimtrader, Voicemap, etc.
Africa will be able to compete in the global market in the area of technology and applications development when they are given the needed investment. Training software engineers can also play a role in shaping the technology industry in Africa. This could enhance software and mobile applications development in Africa in order to compete in the global market.
With the introduction of new technologies and modernization, the agriculture sector is now in a new dimension. Agricultural products like food have become a necessity as many people depend on food for survival.
Agribusiness, A New Dimension In Production
The introduction of agricultural technology and machines like combine harvesters, bulldozers, mowers, etc., has contributed to increased productivity and high crop yield in Africa. This modern technology allows farmers to produce high yield and quality crops for sales.
With the high demand for agriculture produce, Africa needs to invest a lot of capital to boost agribusiness in Africa in order to enhance our competitiveness in the world market.
4. Intra – Africa Trade
Trade-in Africa has been low due to high taste for foreign goods. An economic snapshot of the Africa Free Continental Trade Agreement reveals that “Intra – Africa trade is lower than 20% of the total trade”. Also, the Continental Gross Domestic Product is lower than 15%.
Diversification of African goods can boost Africa’s competitiveness in the global market.
Intra – Africa trade coupled with a joint market could make Africa compete in the global market. However, homogenous products in Africa are retarding Africa’s growth in the world market. Diversification of products, free trade and reduction of tariffs will boost trade in Africa hence competing with foreign goods.
5. Artificial Intelligence
According to Researchers, Artificial intelligence will add $15. 7 trillion to the Global GDP with $6.6 trillion projected to be from increased productivity and $9.1 trillion from consumption effects. This shows how Artificial intelligence is taking over the globe gradually. It is necessary for Africa to adopt Artificial Intelligence in order to compete in the global market.
Artificial intelligence in Africa can help boost productivity.
The introduction of Artificial intelligence in Africa can increase productivity in all sectors of the economy. AI – based pharmacogenomics and advanced algorithms could increase productivity in the health and agriculture sector.
We could also talk of satellite images by Artificial intelligence which could help policymakers in finding solutions to the numerous challenges faced in Africa. All these could help boost Africa’s competitiveness in the global market and not leave Africa behind.
6. Digital Marketing
In this digital world, where digitization is taking over the globe, it has become necessary to introduce digital marketing in Africa. Digital marketing websites are being created in Africa to enhance the advertisement and sales of products. We can talk of Africa Business Pages which is known as one of the leading B2B portals for Africa businesses. We can also talk of websites like Jumia, BlueMagnet, Web SEO online and other platforms which could be developed to compete with foreign websites like Amazon.com, Google Adsense, etc. Generation of traffic, domain name and branding are prerequisites to enable Africa to compete with foreign sales websites.
The industrialization has been the secret to the success of many developed states. Africa lags behind when it comes to industrialization. However, there have been a lot of strategies and plans to help Africa industrialize. This has the aim of closing the development gap between the developed nations and the developing nations.
Industrialization, The Path To Economic Growth And Development
According to Yuan Sun “Africa will be the world’s next stage manufacturing center”. Large investments and protection of infant manufacturing industries in Africa like Nissan motors Egypt, Innoson vehicle manufacturing, House of Dawda group, Tilda Uganda and so on could help boost the manufacturing industry. These industries with the appropriate technology can process raw materials into finished goods like they already do. This will reduce the importation of foreign goods. Hence, Africa’s ability to compete in the global market as well as enhancing economic growth and development in Africa.
8. Oil And Gas Production
Oil and gas are needed for various uses such as fuel, cooking gas, petroleum, etc. Without oil and gas, one will not be able to travel at ease as vehicles such as aeroplanes, trains, cars and other machines are fuelled with petrol and gas.
African countries like Nigeria, Algeria, Angola, Egypt, etc. produce oil and gas which are exported to other African countries and outside Africa. Those countries that produce oil and gas in Africa are said to be the top leading producers in Africa. With oil and gas being on a new dimension, there is a need for investments into the oil and gas industry.
Africa needs to adopt these new developments like the use of drones to inspect remote facilities, the use of robots to undertake monitoring and safety checks, etc. to aid oil and gas production in Africa. All these could make Africa’s oil and gas industry be able to compete with other oil and gas industries in other continents.
9. Music And Film Production
The music and film industry in Africa is an industry that is developing of late. The music and film industry in Africa is now being known internationally by other countries. The movies and music produced by Africans are now being bought and telecasted on foreign TV stations.
The Movies And Film Industry Now Competes In The Global Market
The music and film industry in Africa is now on a new level in the global market. We can talk of international awards won by African musicians like Stonebwoy, Sarkodie, Davido, Joeboy and others. In the film industry, we can talk about a film production company like the Iroko Partners founded by Jason Njoku. Iroko Partners has captured the international scene. We can also talk of top African movies like Battle of Algiers, Sambuzanga, the Lionheart. All that the music and film industry needs is investments to push the industry to another level.
Tourism has now become the new industry in Africa that is being cherished by a lot of people. Due to investments in infrastructural development, it is able to attract a lot of foreigners.
Foreign arrivals increased from 48 million as of 2008 to about 56 million as of 2014. This shows how the tourism industry in Africa is growing rapidly. We can talk of beautiful places in Africa like Table mountains in South Africa, the great migration in Tanzania, Sphinx and Giza pyramid in Egypt, Robben island and beaches in South Africa and other tourist sites in Africa. The tourism industry also puts Africa on the global scene.
Africa is a great continent that has the potential of leading the international and global market. The above points have shown that Africa is capable of competing with other countries in the global market. All that Africa needs are investments and commitments from leadership in order to advance in the international world. Africa has a great future indeed.
5 Key Takeaways For the Reader From the Article
- Africa should encourage the establishment of start-up businesses.
- Africa needs to add value to the raw goods that they export outside.
- Investment is the key to the success of African businesses.
- Diversification of goods is what can help Africans compete in the world market.
- Industrialization and technological advancement are what can make Africa develop.