AI and robots offer new model for Africa's textile industry

Traditional textile manufacturing has long been crucial for emerging economies as a foundational element for industrialization. Often, countries with low barriers to entry and lower labor costs have used this sector to establish an industrial base, promote industrialization, and boost their economies. This approach proved especially successful in Asia, where the Asian Tigers rapidly transformed their post-war economies into textile and apparel powerhouses, leveraging low-skilled and low-paid labor, efficient factories, modern ports, and regional-global value chains.

The success of this model has led several African countries to attempt to promote industrialization through textile manufacturing. Benin, for example, recently invested €550 million in an effort to develop the country's textile and apparel sector. However, the rise of artificial intelligence (AI) and robots presents new challenges and opportunities for African manufacturers.

While AI cannot replace traditional manufacturing equipment, it can enable African manufacturers to adopt AI-native production systems from the outset. This can make smaller factories more productive and efficient at an earlier stage of development. AI also changes minimum efficient scale, allowing smaller operations to achieve yields previously requiring large-scale plants.

However, te Velde warns that other markets are also adopting AI and IoT technologies faster than Africa, leading to increased competitiveness for non-African nations. To remain competitive, te Velde suggests that African governments should focus on reducing the technology gap and ensuring that African manufacturers can keep pace with advancements in AI and digitalization.