interesting thoughts on manufacturing in Africa..
Currently, there is speculation about Africa becoming the next manufacturing hub of the world. African countries have key advantages when it comes to manufacturing, such as low labor costs, abundant resources, duty-free and quota-free access to U.S. and European Union markets for light manufacturing under the Africa Growth and Opportunity Act and the Cotonou Agreement. World Bank economists have stated that African nations can overcome their low productive levels by implementing appropriate supportive policies to take advantage of upcoming opportunities. Currently, China is the dominant force in light manufacturing and global export. However, the rising costs of land, regulatory compliance and labor in Chinese manufacturing centers have begun to erase the cost advantage of exporting from there. This trend is predicted to accelerate in the following years. This presents Sub-Saharan African countries with the opportunity to delve into light manufacturing, enhance private investment and create jobs (Dinh, 2012).
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