Manufacturing Africa

Made in Africa: Catalyzing stronger, sustainable, and inclusive economies

October 2023 | Case Study

Manufacturing is the bedrock of a growing economy. Foreign direct investment can play a key role in nurturing this sector to accelerate sustainability and inclusion in emerging economies.

The UK’s Foreign Commonwealth and Development Office (FCDO) is working with McKinsey to implement a flagship economic development program, Manufacturing Africa. The aim of the program - which is funded with UK aid from the UK government and includes partners from BDO, Steward Redqueen, Reformatics, and TechnoServe - is to attract £1.2 billion in foreign direct investment and create 90,000 jobs across the continent by 2026. So far it has secured over £690 million of investment, and created 16,000 jobs.

Overview

An invigorated sector, benefitting millions

Africa’s population is set to double by 2050. Its urban population will triple, and 40 percent of its total population will be younger than 15. The economy will need to add jobs - and lots of them.

The manufacturing sector provides an answer. If developed in a strategic and resilient way, a competitive manufacturing sector could play a vital role in helping Africa reach its full potential in the global economy.

Panoramic view at the sunflower field in Tanzania near Iringa

Virologist wearing coverall, face mask, and face hield working in the laboratory. Scientist working on vaccine development in laboratory.

Working closely with a variety of stakeholders—investors, manufacturers, governments, and others—the consortium began catalyzing inclusive economic transformation, building sustainable institutions through transaction and technical assistance, and developing capacity among the continent’s investment promotion agencies to raise funds fairly.

Manufacturing Africa does not offer direct funding. The program instead catalyzes inclusive growth by attracting foreign-direct investment to companies and projects transforming the economies of Ethiopia, Kenya, Nigeria, Senegal and Rwanda.

McKinsey’s work has focused on deal and sector support: financial analysis, modeling, marketing, business planning, technical assistance, and more. We have also conducted strategic transformation studies to help develop selected manufacturing sectors.