Energy Solutions for the Manufacturing Industry
Why innovative energy solutions are key to the growth of manufacturing industries in Africa, the Middle East, and Asia
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Many of the world’s fastest-developing economies are found in Africa, the Middle East, and Asia. With rich resources available in these regions, there is great potential for significant growth – if they are handled in the right way.
The manufacturing sector has been identified as the core driver of sustained GDP growth: every dollar in sales of manufactured products support $1.33 in output for other sectors by boosting employment, disposable income, and spending. The African Free Trade Agreement (AfCFTA) is expected to enhance the impact of manufacturing further by increasing intra-Africa trade by approximately 52%. As a result, manufacturing has been highlighted as a key component of Agenda 2063, the African Union’s plan for the future development of the continent.
Across the United Arab Emirates (UAE), member states have also recognised the need to promote manufacturing growth through improved infrastructure and the removal of trade tariffs. With so much of the UAE’s GDP being based on oil and gas, it knows that it must diversify as the adoption of alternative energy increases.
The Industry 4.0 plan is expected to increase manufacturing output across the UAE by 30% and Saudi Arabia has recently built six new cities designed to attract and support manufacturing companies. China has long been associated with cheap manufacturing, but, as businesses work to reduce their reliance on one country, the sector is growing across South-East Asia and India. India is now the third most popular manufacturing destination in the world and is projected to export goods worth US$ 1 trillion by 2030.