conjunction with Frost & Sullivan, have put together a comprehensive
research project outlining the current state of key industries across the
continent and identifying challenges and opportunities.
named ‘The dawn of digitalization and its impact on Africa’, considers growth
predictions and where the adoption of smart technology would be most beneficial
in expanding industries to drive sustainable growth. For the purpose of this
study, focus was placed on four key sectors: Water, Manufacturing, Mining and
Minerals, and Food and Beverage.
Some of the
key findings in the report are:
· The adoption of digital technologies, innovation
as well as a range of digital customer offerings are expected to remain varied
across industries, markets and geographies. The extent and impact of digital
technologies is also expected to vary, favouring businesses and industries that
seek relevance and increasing contribution in international markets in addition
to existing domestic markets.
· While advanced analytics and digitalization are
witnessing growing adoption across certain industry sectors, such as the
automotive sector, there is a real opportunity for adoption of these across
industry sectors such as the mining and food & beverage industry which are
significant contributors to major African economies.
· Manufacturing, while the most mature in its
transformation and adoption of digital technologies in Africa, remains a
marginal player struggling to make a bigger impact on country GDPs. The
question governments need to ask themselves is how they align a ‘here-and-now’
emphasis on job creation with the necessary focus on digitalization. This will
enable Africa to create a niche within the global economy. If we fail to
pro-actively select our place within the global manufacturing industry, we run
the risk of continuing on this path of non-industrialization.
·In the water industry, expenditure in water
infrastructure has been low when compared to the global average. Inadequate
investment in infrastructure coupled with poor water utility management has
resulted in a greater need for development of the water sector.
· In the mining industry which has been witnessing
subdued investment, rising cost pressures and increasing labour issues, a
combination of mechanization, efficient extraction of resources and better use
of data can make it easier for mine operators to cut costs and create a leaner
and more efficient mining operation. As such, the successful incorporation of
technology will be possible through collaborative efforts of technology
providers, industry, research institutes and organizations that work for
uplifting the mining industry.
· A stable supply of electricity is critical for
digitalization to flourish. By providing high levels of infrastructure and power
supply, Africa will be able to attract the necessary investment across various
population in Africa is expected to grow to 56% in 2050, from 35% in 2010. This
rapid urbanization will require robust infrastructure to ensure these expanding
cities are hubs of growth and commerce, and not still trying to catch up with
Ralf Leinen, Senior Vice President Digital Industries for Southern and Eastern
Africa, “For the first time in history we have an incredible opportunity to use
smart technology to transform entire economies at an unprecedented rate. Africa
needs to get efficient strategies in place now in order to succeed.”
In the wake of
changing business dynamics, rapidly evolving technology and increasing
competition, collaborative efforts between governments, industry, businesses
(local and international), labour and academia is vital for creating an
environment that is conducive to developing sustainability of local businesses,
encourages technology upskilling, innovation, knowledge sharing and execution.
from the study are just a starting point. Siemens hopes it will begin a
dialogue and provide a framework to some of the unique opportunities that
convenience, below are separate summaries of each sector detailed in the
Water and Wastewater sector
Less than 1 %
of the world’s water is potable. Africa has the largest number of water-scarce
countries in the world. Most of the continent relies on rainfall and surface
water for water supply. Many existing fresh water sources have been polluted to
the extent that access to clean water stands at ±51%. Water scarcity is a
rapidly growing problem for the continent and water projects only account for
1.3% of total infrastructure investment in Africa.
In the water
sector, Siemens aims to promote greater awareness, among customers and
end-users, of the other uses of Siemens flow meters such as water leakage
detection, pipeline water management and irrigation flow measurement. By
optimizing existing infrastructure, Africa can quickly and efficiently increase
access to water. As experts in water applications, we offer powerful,
innovative technical solutions.
provided South Africa with simple, flexible flow solutions for more than 30
years. Siemens flow meters combine world-class performance with a low cost of
ownership, tailored for the toughest water applications. Siemens assists the
Water Boards in efficiently measuring water usage which improves productivity
and ultimately the financial health of the Water Boards.
high-precision volume measurement flow meters are used by various Water Boards
across South Africa, such as Rand Water,
East Rand Water Care Company (ERWAT), Lepelle Northern Water, Umgeni Water,
Metering helps in Water Balancing:
• Designed for
Water Industry Application
• One battery
driven water meter DN 25 – 600 (1” - 24”)
• 10 years
battery operation & AC + battery backup
Food and Beverage sector
population in Africa is expected to grow to 56% in 2050, from 35% in 2010. This
rapid urbanization combined with preference shifts towards formal retail will
drive demand for FMCG products.
in Africa, the industry has been dominated by large multinational players. High
import duties, free trade agreements and rebates in the form of tax incentives
are increasingly being adopted in order to drive local manufacturing growth.
This, along with numerous SME accelerator programmes, is evolving this sector
to be more dynamic and an enabler of economic growth.
local SMEs include microbreweries in the beverage industry, which has increased
competition and an increase in price sensitivity due to these microbreweries
catering to more niche markets.
beverage manufacturers must consider many factors: a consistently high level of
product quality, maximum plant availability, optimum resource efficiency – and,
increasingly, the greatest possible flexibility in order to meet more and more
individual customer requirements.
these challenges today and in the future is possible only with digitalization.
A good example
of Siemens technology being used to improve plant efficiency is in the beer
SIMATIC PCS 7 with
BRAUMAT craft brewing libraries is designed specifically for this sector and
employs automation to streamline the entire production process.
monitors the brew quality, which is made possible with automatically stored
production data and analysis tools.
Advantages include increased production, improved quality, repeatability and
consistency. This is done by automating labour-intensive tasks which have
historically been done manually. Alongside automomation, Siemens runs various
upskilling programmes to ensure staff grow with the company and are enabled to
thrive in an increasingly digitalized environment.
information : siemens.com/food-beverage
mining is one of the key economic drivers for many African nations. Over the
past few years this sector has come under pressure due to subdued investment,
rising cost pressures and increasing labour issues.
strikes over the last few years have gradually pushed mining companies towards
implementing mechanization on a larger scale to improve cost efficiency and
remain globally competitive.
mining is declining in South Africa, studies show that a total of 496 Mt of the
592 Mt gold resources can be mined with mechanized processes.
This is equivalent to 11 large gold mines.
over 75% of new base metal discoveries found were at depths more than 300m.
Only Automation can improve safety and efficiency to ensure mining remains a
sustainable economic driver going forward.
confronting the globalized mining industry – now and in the future – can only
be mastered by raising productivity and by reducing operating and extraction
costs. Ever stricter environmental regulations must also be met and safe
working conditions ensured.
Productivity with reduced maintenance & service costs
portfolio with complete electrical engineering, drive automation and service
packages that increase productivity, improve drive system efficiency and reduce
Conveyor Belt Systems
Use of digital
simulation tools to reveal the dynamic behavior of the whole system which
allows improvements to be made in system operation while also minimizing idle
Processes and Operation
with its open, flexible and scalable architecture forms the basis of the
Minerals Automation Standard that aims at improvements in competitiveness,
through optimized productivity, plant availability and efficiency.
SIPLUS CMS for
the early detection of damage to machine and plants which aids in decision
making for maintenance staff, operators and management.
availability and efficiency
Sentinel Copper Mine in Zambia Siemens has implemented a SIMINE Gearless mill
drive with SIMATIC PCS7 mill automation that has resulted in an operational
efficiency of 95.3% in addition to lower operating costs, minimized downtimes
and improved reliability.
Freeport McMoran Grasberg copper and gold mine in Indonesia, SIMATIC PCS7 was
installed for the DCS that controls eleven production trains and five service
locomotives. The automation system allows to minimize production loss in the
transition from open-pit to underground mining
Health Analytics creates a foundation that allows equipment like conveyors,
ball mills and crushers to supply additional data. Analysis of this data
provides information that allows for fact-based maintenance decisions in real
time while also planning maintenance and service measures.
In the past,
enhancing operational excellence in the mining industry often meant cutting
costs. Today, modern technology opens up new ways to set new benchmarks in
productivity. Leading mining companies all over the world rely on
state-of-the-art automation, energy, and drilling systems to increase mining
intensity with reduced personnel and energy costs. Some of them are able to
achieve energy savings of 10 to 40% through renewable energy installations,
innovative energy technologies, and highly automated mining processes.
Siemens also created The Digital Mining Incubator, which is a co-creation space
focused on developing mining engineering competence. The incubator is
integrated into the Wits Tshimologong Digital Innovation Precinct and is aimed
at upskilling young individuals who have an interest in the mining sector, as
well as disadvantaged individuals interested in actively participating in the
future of mining. Together with mentors from Wits, Tshimologong and Siemens,
students are enabled with the necessary tools and skills to effectively
transform and develop the South African mining sector.
per capita is expected to boost local demand for manufactured goods while also
providing the opportunity to create export-driven manufacturing setups. Local
demand alone is not expected to justify investment in the sector.
countries are rich in mineral resources which are exported without much value
addition and as such have a lower market value. Finished goods are then
imported at a much higher price.
losing out on valuable foreign exchange. Hence, the focus is to develop
industries and supply chains that can add value to these raw materials and
contribute in a greater way to the local economy.
To succeed in
the future Africa needs to seize the opportunities provided by digitalization
right now. Digitalization promises lower costs, improved production quality,
flexibility and efficiency. It brings a shorter response time to customer
requests and market demands. Productivity and energy efficiency can increase
thanks to an integrated power supply. Solutions for the digital enterprise are
already here - regardless of the sector or company size.
twin in the automotive industry is the precise virtual model of a vehicle or a
production plant. It displays their development throughout the entire lifecycle
and allows operators to predict behavior, optimizing performance, and implement
insights from previous design and production experiences.
the digital twin of product, production and performance that helps reduce the
number of prototypes, predict performance of production and products through a
combination of domain expertise and optimized tools.
Africa Siemens technology automates, drives and intelligently controls assembly
lines, paint shops and body shops. Siemens also plays in integral role in the
manufacturing process of the upstream automotive segment with industrial
control technology playing a role in the automotive component and the tyre
solutions make it easier for manufacturing entities to adapt quickly to new
market situations and evolving technology while ensuring greater flexibility in
meeting customer specific requirements