Ka She Anfani Onise Sile Fun Awon Iran To Nbo Lehin

Build capacity for a new generation of African manufacturers

The African manufacturing sector is currently dominated by enterprises that are oriented towards external investors and markets. The orientation is both direct and indirect. Official trade policy promotes intervention of foreign direct investment as “juju” for curing perceived disfunctions in local savings and investment levels. Societal consumption patterns sustain indirect dependency on foreign manufacturers through export of raw materials and import of finished goods.

Current generation of manufacturers are not environmentally sustainable in that they draw neither technological inspiration nor economic sustenance from the African markets. A progressive society is one in which cultural relevance underpins scientific research and technological innovation. African manufacturers are undistinguished in research or innovation in a world where the quintessence of market competitiveness is a societal culture of science and technology .

There are three breeds of these unsustainable manufacturers: the vast majority export mineral extracts or agricultural commodities to foreign markets. Global revenues for these commodity suppliers are on a long-term downward spiral as the primary markets become glutted or as primary processors resort increasingly to using innovative synthetic alternatives. The second breed assemble components imported from foreign manufacturers for distribution within African markets. Dramatic falls in purchasing power, high capital costs, and rapid devaluation of local currencies combine to dampen affordability of foreign exchange for importation of imported components. It is also becoming increasingly difficult to ensure reliable supply of the requisite process tools or machinery in an age of rapid technological obsolescence. The third breed are marginally sustainable as they concentrate on domestic processing of local commodities for consumption in African markets or for export. They survive on the margins because their products fulfil low-order nourishment and security needs such as food, fuel or housing.

The long-term survival of today's manufacturers is doubtful because African consumers are becoming more discerning and aspiratorial. They are very fed-up with making-do on inferior goods that have no quality guarantees, low cultural relevance, or high security risks. Examples of such products include stand-by generators, “tokunbo” automobiles, “GSM” telephones, and “pure water” sachets – all dominant products in various African markets despite the ready availability of superior alternatives.

To boost competitiveness in both the local and the global markets, African manufacturers will need to evolve a new generation of enterprises that are technically capable of fulfilling higher-order needs such as cultural relevance, self-actualisation, and wealth creation. The new generation of African manufacturers must be “glocal”: competitive in global economic markets yet sustainable by local cultural aspirations. The glocal duality is necessary. There is really no local economic market anywhere in the world: the aforementioned products continue to penetrate even the most remote African village. The most insidious driver of such globalisation is cultural packaging. Product promotion activities wrap aspiration (for the improved living conditions deemed attainable by using the products) with cultural affinity to the societies that manufacture and package the products. Product promotion activities permeate the education, work, entertainment and religious events in our daily lives. These busienss activities and cultural events indoctrinate Africans that the 'best', 'original', 'true', 'acceptable' products or services are only those imported from foreign manufacturers. In this manner, African products are rendered uncompetitive as trade dependency thrives on misplaced cultural aspirations. It is necessary not only to remove these foreign cultural baggage from the products we want, but also to manufacture and/or wrap such products with African cultures.

The new generation of African manufacturers can succeed only by helping to create a new societal culture. A culture that creates and reinforces higher-order expectations that:
• African socio-economic aspirations are progressive;
• African manufacturing is fabricated on research and technological innovation;
• African products are globally competitive on price and quality terms;
• African consumers can and should aspire to locally made products.

By undertaking product promotion activities which cultivate and communicate these expectations in homes, in schools, in the media, in religious gatherings, etc, African manufacturers and public institutions can create an enabling environmentt in which their businesses are globally competitive yet locally sustainable.

The burden of expectation is, of course, performance.
It is fairly obvious that the current generation of African manufacturers do not presently endure these expectations. The extent to which they can at least perform an evolution of the next generation is unclear. As earlier indicated, their orientation to foreign markets and investors may be incompatible with promotion of African culture as a competitive advantage. Today, only a few of these manufacturers operate research-based businesses. Even fewer, continuously incorporate technological or managerial innovations into their production processes, even when such improvements are imported as 'black-box' solutions from foreign markets. Fewer still, conduct product promotions that seek to globalise truly African cultural values. It is the rare African manufacturer who combines cultural relevance with technological improvements to yield products that are competitive in world markets.

Alaran Development Enterprises aims to work with the new breed of manufacturers and public institutions boost the global competitiveness and local sustainability of Made-in-Africa products. Alaran D.E conducts strategic advisory, research and operations management in agric-synthetic materials, distributed energy, and robotics industries.
We are pioneers, too.

Remi-Niyi Alaran
Ijebu-Ode, Ogun , West Africa. March 2005
(c) Copyright Alaran Development Enterprises 2005