DIGITALISATION AND THE FUTURE OF MANUFACTURING IN … · 2020. 4. 6. · Karishma Banga 20th June...
Transcript of DIGITALISATION AND THE FUTURE OF MANUFACTURING IN … · 2020. 4. 6. · Karishma Banga 20th June...
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Karishma Banga20th June 2018
DIGITALISATIONAND THE FUTURE OF MANUFACTURING IN AFRICA
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OVERVIEW
• Conceptualising the digital economy• Main findings
oNew empirical evidence for low-income countries• Opportunities and Challenges for African countries in the digital
economy• Policy-approach
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WHAT IS THE DIGITAL ECONOMY?
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LOW LEVELS OF DIGITALISATION IN AFRICA
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LOWER IMPACT OF INTERNET PENETRATION IN LICS
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IMPORTANCE OF TARGETED SKILLS-DEVELOPMENT
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OPPORTUNITIES FROM DIGITALISATION IN AFRICA
• Lowering costs of trade and coordination; increasing GVC participation
• Lowering costs of production and entry into the export market
• Improvements in productivity; boosting output and exports.
• Case studies; Funkidz and A-Z factory
A to Z Factory in Tanzania
All photo rights reserved; SET programme
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CHALLENGES FOR AFRICA IF THE DIGITAL DIVIDE PERSISTS
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• Re-shoring; cost of capital is rapidly falling in developed economies, while wages in developing countries are rising.
• 250,000 jobs have already been re-shored to the US since 2010.
• 126 African jobs lost per US company re-shored.
• Slow-down of convergence in growth for developing countries.
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CONCLUSION
Boost traditional manufacturing Digitalise manufacturing
Window of opportunity for 15-20 years Invest in internet and digital technologies
Build industrial capabilities to move into higher-value added manufacturing
Targeted skills-development; focus on STEM; private sector collaborations
Address basic constraints to manufacturing; leapfrogging not possible without improving infrastructure, roads, ports etc.
Promotion of technological innovations, well embedded innovation hubs, and effective PPPs.
A two-pronged approach is needed in Africa;
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THANK YOU!
• Read the full report at : https://set.odi.org/digitalisation-manufacturing/.
• QUESTIONS TO COUNTRIESqHow is digitalisation visible in your manufacturing sector?qHow is the country preparing for a more digital future?qWhich manufacturing activities are least at risk from digitalisation
and can be promoted?
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