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Old 02-26-2015, 05:35 AM
 
Location: Atlanta ,GA
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Im African American,A friend from Ghana and I were talking about this.I asked"why does not a country like Ghana or Nigeria have more manufacturing?Why does Africa not produce items for either sale on the continent or elsewhere.
I then brought up the fact that China with its limited natural resources makes EVERYTHING.And cheaply.

Labour cost are as cheap in Africa as the are in China.

There is so much natural resources in Africa.
A country that does not build things has very limited growth potential.Unless of course you have oil like in countries like Saudi Arabi,Kuwait,UAE etc.

My friends says that the mentality of many Africans is that if its made in Africa and not Europe or america,its inferior.He even gave example of a Ghananian businessman that would not by Ghanain made paper products because he felt them inferior.

Your thoughts n how,why and what can be donw to increase African manufacturing.
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Old 02-26-2015, 06:23 AM
 
Location: Macao
15,943 posts, read 36,139,074 times
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It's a mystery. It is interesting that CHINA is dominating the cheap end market. They just produce things so incredibly cheap, and ship it to Africa (and everywhere else in the world).

On that note, heard tons of Chinese also move to Africa, and intermarry with the cultures already there. I guess its just 'economies of scale'.

Why Africa can't create it as well, is a mystery though.
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Old 02-26-2015, 11:43 AM
 
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The key to manufacturing is (1) Lots of cheap workforce (2) highly educated workforce
Cheap workforce is simple to understand
The reason for highly educated workforce is that companies don't want to spend $1000s in training people on how to use a calculator, computer, internet, etc, etc, etc. and once that person is trained after 1-2 years have that person leave the company and then have to spend 1-2 years training another person.

Quality is not that big of an issue
A country can have very low standards of quality and a company based there can produce high quality products.
Nike has been making shoes in Vietnam since forever.

the biggest issue in Africa and Latin America is corruption
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Old 02-26-2015, 03:36 PM
 
Location: Duluth, Minnesota, USA
7,653 posts, read 15,327,023 times
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Quote:
Originally Posted by afonega1 View Post
Im African American,A friend from Ghana and I were talking about this.I asked"why does not a country like Ghana or Nigeria have more manufacturing?Why does Africa not produce items for either sale on the continent or elsewhere.
I then brought up the fact that China with its limited natural resources makes EVERYTHING.And cheaply.

Labour cost are as cheap in Africa as the are in China.

There is so much natural resources in Africa.
A country that does not build things has very limited growth potential.Unless of course you have oil like in countries like Saudi Arabi,Kuwait,UAE etc.

My friends says that the mentality of many Africans is that if its made in Africa and not Europe or america,its inferior.He even gave example of a Ghananian businessman that would not by Ghanain made paper products because he felt them inferior.

Your thoughts n how,why and what can be donw to increase African manufacturing.
Infrastructure and intra-continental trade barriers are two other factors.
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Old 02-26-2015, 05:03 PM
 
Location: Atlanta ,GA
9,086 posts, read 13,282,211 times
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Quote:
Originally Posted by Dopo View Post
The key to manufacturing is (1) Lots of cheap workforce (2) highly educated workforce
Cheap workforce is simple to understand
The reason for highly educated workforce is that companies don't want to spend $1000s in training people on how to use a calculator, computer, internet, etc, etc, etc. and once that person is trained after 1-2 years have that person leave the company and then have to spend 1-2 years training another person.

Quality is not that big of an issue
A country can have very low standards of quality and a company based there can produce high quality products.
Nike has been making shoes in Vietnam since forever.

the biggest issue in Africa and Latin America is corruption
I get everything you stated except a highly educated workforce.Many manufactured items dont require the workforce to be educated.Also the lack of jons in Africa should provide loyal employees.

Corruption of course is an issue but it varies from country to country.Its not an African problem exclusively.
According to Transparency International Ghana and several African countries have far less than China
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Old 02-26-2015, 05:22 PM
 
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The main reason why Africa struggles to have a stable manufacturing base is because it still has little infrastructure in place to encourage trade. Many roads are not paved, ports are underdeveloped and much of the workforce is not trained. It makes it economically unfeasible for companies to invest in the continent when China and India have better developed infrastructure.

Another main reason is conflict within the continent. Given that Africa has large porous borders, conflict can easily spill regionally. This make investors nervous about investing in a country that could go up in flames at any moment. China, though corrupt and autocratic, is still relatively stable compared to Africa.

There are numerous other reasons, but these two are the main ones.
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Old 02-26-2015, 07:20 PM
 
Location: Macao
15,943 posts, read 36,139,074 times
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Quote:
Originally Posted by Dopo View Post
the biggest issue in Africa and Latin America is corruption
I have read about the corruption issues. I was reading about a book about Africans in China, and how they do business. On the China side, they have their own issues dealing with things, but it is NOTHING with the issues they deal with trying to get those cheap Chinese products into Africa. Mostly dealing with corruption. Giving away much of their products just to get the products into Africa.
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Old 02-26-2015, 10:18 PM
 
Location: Atlanta ,GA
9,086 posts, read 13,282,211 times
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Quote:
Originally Posted by jjthejetplane View Post
The main reason why Africa struggles to have a stable manufacturing base is because it still has little infrastructure in place to encourage trade. Many roads are not paved, ports are underdeveloped and much of the workforce is not trained. It makes it economically unfeasible for companies to invest in the continent when China and India have better developed infrastructure.

Another main reason is conflict within the continent. Given that Africa has large porous borders, conflict can easily spill regionally. This make investors nervous about investing in a country that could go up in flames at any moment. China, though corrupt and autocratic, is still relatively stable compared to Africa.

There are numerous other reasons, but these two are the main ones.
Really good points about the roads and infrastructure.

The poorus border can be an issue but there are still plenty of countries that are stable.

Botswana
Ghana
Kenya
Namibia
South Africa to name a few
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Old 02-26-2015, 10:23 PM
 
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China has a 2000 year history of manufacturing goods what people want. They have a competitive advantage in that skillset. Guess that's why Mexicans dominate landscaping and construction in the US; they're cheap, located close to the US, and have been building pyramids for 2000 years
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Old 02-26-2015, 11:19 PM
 
Location: Atlanta ,GA
9,086 posts, read 13,282,211 times
Reputation: 2929
Quote:
Originally Posted by TioMartin View Post
China has a 2000 year history of manufacturing goods what people want. They have a competitive advantage in that skillset. Guess that's why Mexicans dominate landscaping and construction in the US; they're cheap, located close to the US, and have been building pyramids for 2000 years
I know this topic mentions Africa in general however Africa is a continent of several dfferent ancient kingdoms with literally thousands of different ethnic groups with many different histories and development patterns.

I should note also that whem I said Africa,I include the Middle East
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