Industry 4.0: the case of Africa

In terms of industrialization, Africa has fallen behind. In recent decades, the continent’s economy has revolved around the export of raw materials. Leaving it to other parts of the world, with Southeast Asia leading the way, to take the leadership of the sector . In 2034, a Kenyan worker will be more expensive than using a robot. Repetitive tasks, like those performed by mine workers, will be the first to be replaced [17]. But, for Georgina Hutchinson, a researcher at the Tony Blair Institute, that’s not necessarily bad news. Automation endangers existing jobs, that’s a fact. But robots can also have the advantage of carrying out difficult and tedious work. It can be a chance for Africa,” she says. With the fourth industrial revolution, the continent could thus catch up in terms of industrialization. Because, unlike the already industrialized states that now have to rethink their old systems, African countries have a head start: they can move directly to the factory stage of the future.

Five African countries are particularly concerned about the rise of robotics, which will automate up to 50% of today’s jobs, according to a study by Mckinsey published in the scientific journal Harvard Business Review. Today, almost half of the activities for which people are paid in the global economy have the potential to be automated via adaptive technology. To carry out this study, Mckinsey studied the 46 countries out of nearly 200, all of which account for 80% of the total workforce. In the world, the percentage of automated activities varies. On the African continent, five countries stand out.

A real opportunity for some territories, already highly digitized. In Kenya, for example, mobile payment has taken precedence over cash payment, without going through the “checkbox”. Today, mobile money accounts for 50% of the country’s GDP. In this context, the emergence and concretization of new occupations in industry 4.0 are certain. Analytical engineers, specialized technicians, artificial intelligence experts and even robot coaches… the range of jobs in the digital factory offers many opportunities. Indeed, automation is a threat to existing jobs. But it can also create jobs. If Africa wants to remain competitive in the global economy, it has no choice but to take the lead .

To achieve this, there is only one option: training. The Fourth Industrial Revolution can be a great opportunity to integrate the growing African population into the labour market, but to do this,

an overhaul of education is essential.” Some countries on the continent are already giving themselves the means. In Kigali, Rwanda, a dedicated diploma, “the African Masters of Machine Intelligence” (AMMI) trains students in artificial intelligence. Developed in partnership with Facebook and Google, the curriculum lasts for one year and prepares future engineers to meet the challenges of digitization in companies.

In Morocco too, dedicated schools and diplomas are beginning to emerge, such as the school 1337. Created by the Office chérifien des phosphates (OCP) and French contractor Xavier Niel, the establishment is accessible free of charge, and without special requirements, after a pre-selection test. On the program? Teaching and practice of computer code, via learning based on knowledge sharing. And so, without teachers. A new pedagogy, which, if surprising, at first sight, can have the advantage of integrating young people disappointed by the classical school system. Nevertheless, according to a recent report published on the employment situation in Africa [20], nine out of ten people are not qualified for the jobs they are applying for. A loophole that could hinder the continent’s development.

Thus, there is a problem with the correlation between the skills acquired and the needs of the labour market. And another reality we must be aware of: there are very few formal jobs. Clemens Weitz, CEO of ROAM [20], believes that improving recruitment processes on the African continent will improve employment and economic prospects. Moreover, according to a study by the consulting firm Mckinsey [18] which promotes Africa as the new frontier of global economic growth. The authors of the report indicate that by 2020, more than half of African households are expected to have discretionary incomes rising from 85 million households to almost 130 million.’ Bill Russo (photo), director of Mckinsey and co-author of the study indicates that consumer industries will be the engines of the continent’s future growth with the growth of 45% of the food and consumer market ($185 billion). These growth opportunities are mainly concentrated in 11 countries (Algeria, Angola, Egypt, Ghana, Kenya, Morocco, Nigeria, South Africa, Sudan, Tunisia and Ethiopia) which accounted for 81% of Africa’s private consumption in 2011.

Industry 4.0 now provides a new framework for thinking about industrialization. This global trend is transforming the manufacturing sector and could bring opportunities for the African continent. In practice, Industry 4.0 involves leveraging an extensive range of technologies such as connected objects, augmented reality and Big Data analysis to support both the end-to-end digitization of physical assets and the development of new technologies. Integration into a digital ecosystem linking all partners in the value chain. Their implementation would significantly reduce the time-to-market and leverage the ability to develop mass customization.

The use of 4.0 industries is all the more attractive in the context of Africa, because of relatively low acquisition cost given the limited weight of Traditional infrastructure. Accordingly, the growth of industries 4.0 could specifically help to: i. Compensate for the infrastructure deficit, ii. Reduce the use of labor-intensive models, iii. Allow Africa to create innovative business models. Industry 4.0 provides, in this sense, a set of levers that allow responding partially or totally in no small number of identified obstacles: The blockchain reinforces product traceability; Data analytics makes it possible to anticipate and solve problems of quality for manufactured products; Drones become a valuable tool in the monitoring and control of operations.

The example of Soko, Kenyan jewellery brand, illustrates the use of technologies through the creation of innovative business models. By exploiting the capacities of mobile-to-web, the company has created a “virtual factory” by connecting thousands of independent artisans from emerging markets with customers in more than 35 countries, all in real-time. With this production model, Soko intends to offer a new kind of luxury goods, handmade, fair and sold at affordable prices. To date, the Soko model has generated more $1 million in revenue divided between just over 2 000 artisans. Moreover, the STS3D company has put virtual reality at the service of the reinforcement Security conditions in South African mines.

To prevent losses caused by the exploration of mature mines, in which it is needed to dig to deeper levels, the three-way viewing tool dimensions, as well as an immersive application, allow realizing scenarios of exploitation by avoiding the exposure of the teams. The recent development of 3D printing on the African continent brings new perspectives. While the health sector knows a vital shortage of infrastructure and equipment in sub-Saharan Africa, it is now possible to reproduce medical equipment and tools by printing, for a much more affordable cost. Digital production on demand could fill at least some of the shortages suffered by laboratories and hospitals of the continent. “Studies in Germany and the United States have shown that for the vast majority of industrial employees, the skills required for Industry 4.0 are not present” [21]. Morocco faces the same observation and the same challenges.