This archive report was first published on 26 August 2021.
Kenya's Manufacturing Sector: A Long Way to Go ¶
Kenya's manufacturing sector has a long way to go, ranking 115th out of 152 countries in the Competitive Industrial Performance Index Report (2020). Despite this, the sector has shown some resilience, with a KAM-KPMG survey in May 2020 revealing that 53% of manufacturers were operating below 50% capacity during the pandemic.
However, the sector has also seen some growth, with the value added by manufacturing increasing from KSh. 690.6 billion to KSh. 734.6 billion between 2018 and 2019. This growth was largely due to increased output in the manufacturing of transport equipment, chemicals, and chemical products, and pharmaceuticals.
The Future of Manufacturing ¶
The face of manufacturing has changed, and today's manufacturers compete not only by the size and scale of their operations but also by their speed and agility. With the rise of global supply chains, manufacturers need to be more flexible and data-driven in their approaches to supply chain management.
As a result, the future of manufacturing belongs to those who can successfully adopt technologies such as machine learning and automation, big data, and IoT. Cloud systems enable these forward-facing technologies, which is why 46% of respondents in Africa's manufacturing sector reported an increased spend on cloud services, according to a study by World Wide Worx.
Why Manufacturers are Using the Cloud ¶
Efficient manufacturing is about accomplishing more with fewer resources without compromising on quality. Cloud technologies play directly into this, enabling manufacturers to effectively manage communication between suppliers and distributors, streamline production schedules through real-time and insight-driven monitoring, and minimize operational costs.
Cloud-based systems are faster and more cost-effective to roll out, enable easier customization and flexibility, allow for scalability, and open the door for innovation. Manufacturers can reduce the time it takes to conduct strategic sourcing, quality audits, supply chain management, optimization, and more accurate forecasting using cloud computing.
Unlocking Africa's Potential ¶
As industries and businesses adapt to working in the digital-first world, digital transformation has become critical to success. Cloud technologies have become a pillar of the modern business world, and the manufacturing sector is no exception.
To accelerate the growth of Kenya's economy through improved manufacturing capabilities, we need to follow international trends and take advantage of all the opportunities that cloud has to offer.
READ: 4 Steps for a Successful Cloud Migration ¶
Francis Wainaina is the Senior Product Manager at SEACOM East Africa, which provides a full suite of flexible, scalable, and high-quality communications and cloud solutions.
