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Technology may help compensate for Africa’s lack of manufacturing

New from The Economist

The new plane is more than just a business venture for its backers, which include Paramount Group, Africa’s biggest defence firm. It started as a project to preserve engineering skills and reverse a brain drain of young local aerospace graduates who were leaving to work abroad, says Ivor Ichikowitz, Paramount’s founder. But it has morphed into a multimillion-dollar venture that is spurring the development of other technologies across South Africa. One taking shape in a nearby government laboratory is the world’s largest 3D printer, which can print aircraft parts from powdered titanium.

In many parts of the world advanced robotics and 3D printers are seen as a threat to manufacturing jobs. Yet in most of Africa manufacturing has never taken off, contributing just 5% of the continent’s jobs, compared with 15-18% in other developing regions, so robots will not kill many jobs. Instead, they offer the opportunity to create new ones by helping African firms overcome bottlenecks in production and by lowering barriers to making and selling things to the world. Without the rapid advances recently seen in digital design and manufacturing, the AHRLAC would never have taken flight.

Other examples abound. In IBM’s new innovation centre in Johannesburg a 3D printer turns out cases for wearable electronics that IBM is developing to track the spread of infectious diseases. Additive manufacturing is helping to lower the cost of innovation for firms across Africa. Until recently, when BRCK wanted to make a prototype for its Wi-Fi transmitters, it had to order it from abroad, wait for weeks and pay up to $250 in shipping and taxes for a small part. Now that 3D printers are available in Nairobi, BRCK can get new prototypes made in days for about $25.

The search for talent has brought other big tech firms to Africa too. Amazon, for instance, opened a large centre in Cape Town in 2004 where it developed much of the technology used in its Elastic Cloud Compute platform, now the main plank of its web-services business. “This is where we are building the next-generation technologies for Amazon Web Services,” says Geoff Brown, AWS’s regional manager for sub-Saharan Africa. “In 2015 we continued expansion and opened an office in Johannesburg, and since then have added hundreds of jobs in the country to support the growth of AWS in Africa and around the world.”

Such businesses employ only a minuscule share of the local workforce, so their direct impact is small, but the indirect effect will be significant. Andela takes about 40 people a month into its four-year work-and-training programme. Its first graduates are due to finish soon, having worked with startups across America. Many of them want to found their own technology firms, bringing to bear not just their newly acquired skills but also a Silicon Valley mindset that embraces entrepreneurialism and a willingness to experiment. “We are hoping that the people we are training in Andela today will become the founders of the next Andela in five years’ time,” says Seni Sulyman, who runs the Nigeria operation. In that sense, firms such as Andela may be helping to deal with the real deficit in Africa, which is not a shortage of technology but of people willing and able to adopt and adapt it.

“There is lots of tech already out there in the world. When we go looking for it we can find it,” says David Kelly, who runs a venture-capital firm that starts greenfield businesses in agriculture and food processing throughout Africa. “It is the tech-adopters who are missing.”

Other news from Reasonable technologies