Steinbeis Entrepreneur Professor Dr. Brando Okolo and his team have built a network for promoting digital manufacturing in Africa
According to the 2024 World Economic Outlook Report published by the International Monetary Fund (IMF), nine of the world’s 20 fastest-growing economies are in Africa, while the other 11 are in South America and Asia. In other words, none of the top 20 countries in the report are in Europe. This economic trend has already been apparent for the past ten years. Some of these burgeoning economies have growth rates of up to 11%. It is clear that Germany needs to cooperate effectively with these countries. This is part of what drives the work of the Steinbeis Consulting Center IMAPS Institute for Material Applications & 3D Printing Solutions, which aims to promote business between Germany and Africa. In this article, Steinbeis Entrepreneur Professor Dr. Brando Okolo gives TRANSFER an insight into his enterprise’s current activities.
Reports published by various international organizations predict that Africa – Europe’s geographically closest trading partner – will be a market of 2.5 billion people by 2050. It is thus important for all of us to start shaping this market and building trusted relationships that ensure a fair and profitable environment for all the stakeholders.
Manufacturing industry is one sector where we believe that we can achieve something in a very young African economy. For instance, the procurement of spare parts for production machinery and transportation is one area where economic value added can be built.
Affordable housing is another potential growth area – in the next decade, the combination of urbanization and global population growth is set to create a housing shortage of around 2.8 billion dwellings. 42% of the world’s young people will live in Africa by 2030. Although cities in Africa are already being expanded and new cities built, closing the enormous housing gap will call for the use of new technologies such as 3D construction printing to supplement conventional construction methods. Digital manufacturing offers
Africa’s burgeoning economies a manufacturing platform that they can get on board with. We define digital manufacturing as a combination of 3D scanning, computer-aided design, 3D printing, CNC milling, surface treatment, heat treatment and material resources.
Africa: the economic partner of the future
There are several reasons why an industrialized Africa would be of great strategic importance to Germany:
- The growth in demand in areas where Germany is a world leader – such as industrial machinery, technical know-how and high-tech equipment – would lead to new trading opportunities.
- German industry could diversify its supply chains and become less reliant on far-flung markets in Asia and other parts of the world. African manufacturers could supply semi-finished products, parts and raw materials more cheaply and efficiently, helping to create more resilient supply networks.
- Africa’s mineral resources, some of which are critically important to German industry, could be processed cheaply in Africa. This would add value to trade and reduce the costs associated with raw material extraction, transportation and refining. New investment and expansion opportunities for German businesses would be created directly in Africa, offering German firms access to growing consumer markets and an aspiring middle class. German businesses could also benefit from using African markets as a testing ground for innovative technologies, especially in sectors such as green energy and sustainable production.
- The pressure that Germany is currently experiencing from immigration could be mitigated by the development of a strong manufacturing industry in Africa, since this would create jobs locally, helping to stabilize the region. It would enable Germany to manage immigration in a more controlled, cooperative manner and, where appropriate, prioritize immigration of skilled labor.
- As a world leader in the fields of sustainability and green technology, Germany could cooperate more effectively with an industrialized Africa in the green manufacturing, renewable energy and environmental protection sectors.
- Germany could help African industry to develop clean technologies that support global efforts to combat climate change, while at the same time opening up new markets for its environmental innovations.
- Economic development is key to maintaining geopolitical stability. A prosperous, industrialized Africa would help to reduce poverty, inequality and conflicts, strengthening stability and security across the continent. A stable Africa would benefit Germany and the rest of Europe by reducing the risks associated with conflict-related migration, piracy and unstable global trade routes.
- In view of Africa’s growing importance as a global economic actor, diplomatic relations would improve if Germany were able to negotiate with African countries on equal terms. A strong economic partnership could make it easier for Germany to forge long-term strategic alliances, cooperate on global governance and develop mutually beneficial relationships in areas such as trade, security and climate action.
Trust key to building business relationships
Drawing on our expertise at the Steinbeis Consulting Center IMAPS Institute for Material Applications & 3D Printing Solutions, seven years ago we started looking at the different entry points into emerging economies and investigating how to operate in this socio-economic environment. While local culture undoubtedly plays an important role in forging business relationships in these economies, the single most effective factor is building trust. Building the trust needed to operate successfully in emerging economies in other parts of the world can take anywhere from a few hours to several years. We have found that information and awareness-raising are the best approaches for communicating the importance of digital manufacturing to entrepreneurs.
With the assistance of our African network, we have achieved a number of important milestones in the space of four years:
- Establishment of two additive manufacturing (AM) centers,
- Establishment of a university postgraduate AM program,
- Establishment of two AM research labs,
- Establishment of two private prototyping labs,
- Establishment of a hydrogen economy consortium,
- Mentoring of several individuals and small businesses to help them bring in technologies to increase their business’s efficiency,
- Establishment of an additive manufacturing platform comprising members of academia and industry.
As a consulting team focused on developing production capacity in Africa, our work revolves around building strong, sustainable relationships with different stakeholder groups and providing bespoke solutions to improve local industrial capacity. This complex process relies on cooperation and entails the involvement of national and local stakeholder groups, bringing in innovative know-how and building long-term partnerships that promote growth. Our structured approach comprises several steps:
- Build relationships with stakeholders
- Bring in know-how, services and products
- Share case studies and best practices
- Discuss financing with stakeholders
- Analyze financing models
- Prepare and present an offer
- Implement logistics and delivery plans
- Installation, commissioning and training
- Post-implementation support and user feedback
- Joint use of newsletters and updates
- Build an ecosystem
Respecting rather than ignoring local factors
While these steps are key to how we formulate, develop and implement business activities in our projects, another, intangible aspect of our international work involves being prepared to adapt what we do to the environment we wish to do business in. There are some things in new business environments that we can’t change, but we must co-create within these constraints. It is therefore essential to understand these factors before we try and do anything, and adapt to them before we implement our ideas.
To succeed in emerging economies in other parts of the world, especially in supposedly informal markets, you need to ask yourself whether you are there to impose your own methods, rules and ideas or to achieve economic value added in this unregulated market. We have accepted that the environment we wish to do business in can change us, just as we attempt to change it.
Our work as Steinbeis consultants in Africa’s manufacturing sector is driven by the goals of building lasting partnerships, bringing in innovative solutions and helping to build long-term capacity. A systematic approach to project origination and implementation ensures that all our activities not only meet concrete requirements but also lay the foundation for future industrial growth in the African region where they are carried out.