Africa’s Tooling and Molding Sector at a Tipping Point
After my recent attendance at the 17th ISTMA World Congress in Shanghai, I spent several days in Taizhou, known as China’s “Mold City,” engaging with industry leaders in tooling and molding. While the technology and market dynamics were noteworthy, it was the discussions that truly underscored a critical insight: Africa stands at a pivotal juncture, one that other industries are increasingly recognizing.
The Overlooked Importance of TDM in African Manufacturing
In Africa, the tooling, molds, and dies (TMD) sector often remains in the shadows, overshadowed by more glamorous ventures like automotive manufacturing and tech startups. However, this sector is the essential foundation for nearly all manufacturing, including consumer packaging, automotive parts, and in-house production. Mastery of our industries is contingent on the tools necessary for manufacturing. Without a robust tooling sector, we risk jeopardizing our industrial potential.
Promising Growth Amid Significant Challenges
Africa’s growth narrative is compelling, characterized by an annual economic expansion exceeding 4%. With the workforce expected to absorb 620 million new working-age individuals by 2050, driven by rising purchasing power, increased investments, and strengthened intra-African trade, the opportunities are immense. Nonetheless, there are serious risks including growing debt levels, political instability, and productivity that fails to keep pace with ambition. At the heart of these productivity challenges lies the tooling sector, which plays a crucial role in shaping what we can manufacture. Africa’s contribution to global product development is currently minimal but has the potential for significant growth.
Local Manufacturing and the Role of the African Continental Free Trade Area
South Africa leads the continent in tooling and molds, serving as a bellwether for the industrial trajectory of the region. Countries such as Morocco, Egypt, Kenya, Ghana, and Ethiopia are witnessing burgeoning domestic manufacturing sectors. This growth is driving an increased demand for local tooling solutions. The African Continental Free Trade Area (AfCFTA) is poised to further catalyze this momentum, empowering countries to specialize and collaborate rather than relying excessively on imports from Asia. The strategic manufacturing capabilities established in South Africa, Morocco, and Egypt lay the groundwork for a significant TDM revolution, potentially reclaiming tooling jobs from low-cost foreign competitors.
The Automotive Sector: A Catalyst for Growth
Over the next decade, the automotive industry, particularly with the transition to electric and hybrid vehicles, is likely to be the most significant driver of growth in Africa. South Africa is well-positioned for this shift, with Morocco expanding its electric vehicle (EV) assembly capacities while Egypt is boosting battery production. Kenya, Ghana, and Rwanda are also developing their own assembly lines. Each advancement necessitates new tooling for components like car body parts, battery casings, and precision equipment that relies on automation. With Africa’s car ownership still less than 40 vehicles per 1,000 people—compared to over 700 in the United States—the potential market opportunity is enormous.
The Need for Modernization and Skilled Workforce
Technological modernization will determine which countries can lead this charge. In my observations during my time in China, I noted the absence of antiquated machinery; every tool was CNC-enabled. Africa possesses a unique opportunity to leapfrog traditional manufacturing practices and embrace contemporary tools and methodologies. However, this progression hinges on human capital. The current scarcity of skilled toolmakers, programmers, and mold designers poses both a challenge and an opportunity. Countries that prioritize technical training and on-the-job learning will likely gain a competitive edge.
Navigating Challenges in the Tooling Sector
It’s crucial to address the challenges facing the sector, particularly the competitive pressure from low-cost tooling imported from Asia. China’s expansive tooling capabilities are particularly intimidating—one valley I visited boasted over 3,000 tool rooms. The industry faces high entry barriers, with costs being prohibitive for small and medium-sized enterprises. While some markets exhibit fragmented demand, these challenges can be mitigated through shared facilities, innovative funding models, standardized practices, and a concerted effort to stimulate local demand.
Envisioning a Robust Future for African Manufacturing
Looking ahead, the roadmap for Africa’s manufacturing sector can be broken down into phases. From now until 2028, foundational elements such as training to global standards and establishing shared infrastructure are paramount. The period from 2028 to 2032 is poised for real growth, spurred by the benefits of free trade and advancements in electric vehicle production. By 2032 and onward, early movers in this sector should not only cater to local demands but also compete internationally.
Conversations held during the conference in Shanghai reinforced my conviction: Africa’s moment in the tooling industry is not just imminent; it is already unfolding. The countries and companies that commit to investing in talent, technology, and collaboration will shape the future of this sector within the next decade. Others will find themselves relegated to paying foreign entities to supply the tools that manufacture everything else. At the Production Technology Association of South Africa (PtSA) and ISTMA Africa, we will continue to advocate fervently for a position of strength for Africa.
