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Those are not in the 'top 10' things required to support an electronics manufacturing base. Africa is the last place any electronics are going to be made, and

by jariel 6y ago

Those are not in the 'top 10' things required to support an electronics manufacturing base. Africa is the last place any electronics are going to be made, and it's completely unsuitable to their situation, at least currently. Manufacturing any kind of electronics any scale requires a fair bit of sophistication. There is a lot of know how in putting together lines, knowing what to optimise, managing supply chains. I just got some quotes from various parties, they all had to have intimate, Engineering level understanding of the system, they all switched out parts, recommended alterations. They sometimes use expensive gear. Factories in China have labour, but they also have educated professionals. They rely on an entire system of sub-contractors, suppliers etc. Even before you get to that, in Africa you have: - The electricity grid is inconsistent. - Basic things like water supply, air conditioning systems, HVAC is inconsistent, let alone trying to support a proper clean room. - Vehicle repair and maintenance can be hard. - Internet is inconsistent - Financial system is not fully coherent, financial services for many things don't exist. - Physical infrastructure (roads, buildings) is iffy everywhere. - Huge amounts of petty theft: things left unlocked will be stolen. - Massive corruption, payments to local grafters, police, politicians. - Political climate is unstable, politicians may promise something, never happens, want a 'cut' of your business. - Legal system undeveloped, lacking in transparency, commercial courts no well understood. - Many apps and services we take for granted don't operate in Africa. Forget the elevated level of knowledge required to staff the front-office of a real factory. Even if you could, the concept of 'employment' and 'basic level of professionalism' is not widespread. Get people to show up consistently, get them to work together, plan complicated products, communicate with individuals in a variety of nations. Bono started a clothing line to specifically have stuff made in Africa, but even that basic textile effort did not work. The Chinese invest in African for minerals etc. they bring in their own workers (why do they do this if African wages are lower?). Africa is mostly very underdeveloped right across the board in the terms we understand it. They're not at the level necessary to take on basic manufacturing. Their hope will be to develop natural resources in an intelligent way, like Botswana as a great example. I think Vietnam, Philipenes, eventually Malaysia are more likely suited for electronics manufacturing, especially because it's going to be driven by Chinese leadership. Same for India: Foxconn maybe can pull it off, because they have expansive operational knowledge, there are educated people in India even if they can't fathom yet how to do that level of work and systems are not suited to it. India does very well in software - partly because it doesn't require expansive networks or an 'industrial base', it can grow up from 'small spots' of talent, with limited dependency on the environs. You can still have a 'great software shop' surrounded by corruption and degrees of dysfunction, you can't build electronics manufacturing base like this. Here is some data on African manufacturing [1], notice it's fairly low level stuff: plastics, beverage, chemicals, food processing etc.. [1] https://set.odi.org/wp-content/uploads/2016/04/Export-Based-Manufacturing-in-Africa_Full-paper.pdf https://set.odi.org/wp-content/uploads/2016/04/Export-Based-...

pankajdoharey 6y ago
Thats a generalisations you have to look at specific countries which are developed enough to start now and over a period of time other countries with the right mix of resources would benefit and profit aswell. My guess is countries like Kenya and South Africa are developed enough for starting manufacturing. As far as design and knowledge skill is concerned that can be hired from other countries.
jeswin 6y ago
This is a great comment. But I think India will force companies to manufacture locally by having heavy tariffs in key sectors/components (which involve Chinese manufacturing), to offset cheaper production costs in China. It may not be a bad strategy for any country wanting to reduce dependence on China.
sufyanadam 6y ago
I have to disagree with you on almost all points. I lived in East Africa for 20 years, and my observation of the African people was that their intelligence was similar to what you'd find anywhere in silicon valley. The problems you mentioned with financial services was solved way back in 1999 and rivals any mobile / cashless system anywhere else in the world, and that was long before things like square came out in the US. Other issues you mentioned such as electricity and water are the reason why you will find some of the most innovative people out there. Rather than complain about their inconvenient lack of opportunities, they think outside the box to achieve whatever they want to achieve. When everything is handed to you on a silver platter, that is what causes lower IQs, and when you have less and are constrained, that is what causes you to innovate. It's amazing to see what some of the makers there make, even the children, when they have very little, or practically nothing sometimes.
- cpursley 6y ago
  I don't think people are suggesting folks in Africa have a lower IQ, they're stating that they have less training an expertise (required for this type of manufacturing). I guess the big question of this is the case is how to get people there skilled up. I wonder how China did it before becoming a manufacturing juggernaut.

by jariel 6y ago

pankajdoharey 6y ago

Thats a generalisations you have to look at specific countries which are developed enough to start now and over a period of time other countries with the right mix of resources would benefit and profit aswell. My guess is countries like Kenya and South Africa are developed enough for starting manufacturing. As far as design and knowledge skill is concerned that can be hired from other countries.

jeswin 6y ago

This is a great comment. But I think India will force companies to manufacture locally by having heavy tariffs in key sectors/components (which involve Chinese manufacturing), to offset cheaper production costs in China. It may not be a bad strategy for any country wanting to reduce dependence on China.

sufyanadam 6y ago

I have to disagree with you on almost all points. I lived in East Africa for 20 years, and my observation of the African people was that their intelligence was similar to what you'd find anywhere in silicon valley. The problems you mentioned with financial services was solved way back in 1999 and rivals any mobile / cashless system anywhere else in the world, and that was long before things like square came out in the US. Other issues you mentioned such as electricity and water are the reason why you will find some of the most innovative people out there. Rather than complain about their inconvenient lack of opportunities, they think outside the box to achieve whatever they want to achieve. When everything is handed to you on a silver platter, that is what causes lower IQs, and when you have less and are constrained, that is what causes you to innovate. It's amazing to see what some of the makers there make, even the children, when they have very little, or practically nothing sometimes.

cpursley 6y ago
I don't think people are suggesting folks in Africa have a lower IQ, they're stating that they have less training an expertise (required for this type of manufacturing). I guess the big question of this is the case is how to get people there skilled up. I wonder how China did it before becoming a manufacturing juggernaut.