Guest Post by: Tumi Frazier, founder of Tumi Frazier International
While women have a strong presence in large scale industry sectors such as healthcare, social assistance, and professional services, the majority of women owned businesses are clustered in industries that have lower levels of revenue on average; which limits their economic impact. By contrast, women have a relatively low presence in industries that represent the highest revenue potential for business owners, such as wholesale, finance, insurance, and manufacturing.
So, how do we include and encourage women to participate in these industries? Well, here is a highlight of some of the opportunities that exist within the manufacturing sector in Africa. First and foremost, Deloitte regards Africa as the final frontier for the global automotive industry. It is estimated that there are 44 vehicles for every 1000 African inhabitants compared to the global average of 180. Of the 90 million vehicles sales worldwide in 2015, 1.55 million were in Africa and 80% of these were in South Africa, Egypt, Algeria and Morocco.
South Africa continues to dominate the vehicle manufacturing market in Africa. 600 000 vehicle are manufactured yearly in South Africa; yet only 3% of the parts used to make these vehicles are produced locally. According to South Africa’s Minister of Trade and Industry, Rob Davies, the government has set a target of 1.2 million cars to be produced in South Africa by 2020. Moreover, South Africa has drawn investments of more than R25 billion over the past 5 years.
In fact, Volkswagen Group has set aside R4.5 billion for new models and infrastructure in Uitenhage; Volvo is investing R60 million in a regional parts and distribution centre in Benoni. While Ford Motor Company of South Africa recently announced a R2.5 billion expansion project in Pretoria and Toyota South Africa set aside R6.1 billion for its plant in Durban.
Essentially, there are opportunities across the automotive value chain, including vehicle assembly, production, sales and after-sales that women entrepreneurs can tap into.
A new report by Deloitte confirms that Ethiopia, Nigeria and Kenya have the capability to challenge South Africa’s dominance of the vehicle manufacturing market since they all have the population or economic strength.
So the question is, where are the women entrepreneurs who are going to take advantage of this exciting market opportunity on the African continent?
Tumi Frazier is a South African entrepreneur, professional speaker, author, TV personality, consultant, and founder of Tumi Frazier International, Tumi Leadership Academy, and Tumi Foundation. Tumi is an internationally acclaimed Leadership and Change Management expert who has worked with high profile clients and organizations across Africa, United States and Europe. Tumi has authored 4 books: Courageous Stories of Inspiration; In the Midst of the Storm; Stepping Stones to Success; and Your Moment. Follow Tumi Twitter | LinkedIn
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