New Technology, Entrepreneurship and the Revival of Manufacturing in Africa: Opportunities for Youth and Women? by Wim Naudé 2019 Report commissioned by the “Building economic complexity in Africa: Laying the foundation for expanding economic opportunities for women and youth in Africa” project. *Disclaimer: This work was carried out with the aid of a grant from the International Development Research Centre, Ottawa, Canada. The views expressed herein are those of their respective authors and do not necessarily represent those of IDRC or its Board of Governors, the Development Policy Research Unit, University of Cape Town, or any associated organisation/s. New Technology, Entrepreneurship and the Revival of Manufacturing in Africa: Opportunities for Youth and Women? Wim Naudé Maastricht University, The Netherlands and RWTH Aachen University, Germany email:
[email protected] 19 April 2019 Abstract. The digitization of the economy and advances in smart materials are transforming the nature of manufacturing. This is often described as features of the “Fourth Industrial Revolution” or Industry 4.0. For African economies, not yet having industrialized, this is of great importance, especially given the challenge of youth job creation and the need for gender equality. A combination of Industry 4.0 technologies and a resurgence in tech-entrepreneurship will have four broad impacts on manufacturing in Africa (i) the sector will continue to grow significantly in terms of value added; (ii) net job creation will be positive; (iii) it will stimulate technological and complex skills development, as well as (iv) investment in supportive infrastructure. The opportunities that these impacts will have for youth and women are outlined in the following report.