Industry 4.0 in Africa: Helping or hindering?

The impact of Industry 4.0—the next phase in the digitization of the manufacturing sector driven by computing power, connectivity, and new forms of human-machine interaction—will be wide and profound. It offers exciting opportunities for African manufacturers and small and medium enterprises to create new business models and integrate into global value chains. However, benefiting from Industry 4.0 requires overcoming a myriad of obstacles. For African economies, some of the biggest challenges include connectivity and accessibility constraints. Many firms struggle due to a lack of digital infrastructure, a paucity of digital skills, and inadequate support systems for those businesses eager to harness digital innovation. Given Africa’s unique context, policymakers must ask the right questions to make sure the continent can capitalize on the revolution. On June 4, the Brookings Africa Growth Initiative and United Nations Industrial Development Organization (UNIDO) explored strategies to anticipate and cir