Manufacturing is critical to economic transformation in Africa. However, Africa’s share of global manufacturing output remains far below its potential. The ManuTech Hub aims to leverage startups to address challenges such as low productivity, limited technology adoption, and skills gaps that hinder industrial growth.

The United Nations Development Programme (UNDP) and Ethiopia’s Ministry of Industry have unveiled the Timbuktoo ManuTech Hub. The initiative, announced November 23 in a UNDP press release, is designed to support African startups with funding, mentorship, and advanced technical resources. Set to open in early 2025, the hub will be based in Addis Ababa and serve as a platform for innovation in the manufacturing sector through technology and strategic partnerships.

According to the release, “ManuTech aligns with Ethiopia’s goal of becoming a leading light manufacturing hub in Africa, an ambition reflected in the country’s investments in establishing multiple industrial parks.”

Ethiopia has long aspired to become a manufacturing hub in Africa. In the 2010s, the government adopted the Growth and Transformation Plans (GTPs) to accelerate industrialization, focusing on textile and apparel manufacturing. This led to the development of Hawassa Industrial Park, Africa’s largest eco-friendly park, which attracted brands like PVH Corp. However, they faced numerous challenges which led to underperformance.

The ManuTech Hub represents a new phase in Ethiopia’s industrial strategy, focusing on tech-driven manufacturing to overcome past challenges. By fostering startups, the hub provides a pathway for Ethiopia to diversify its economy and integrate into global value chains.

The hub will provide a three-month hybrid accelerator program for selected startups, offering training, mentorship, technology access, and guidance to align their solutions with Africa’s manufacturing needs. In addition to technical support, participating startups will also receive seed grants to scale their innovations. The Ministry of Industry will supply the physical space for the hub, reinforcing Ethiopia’s commitment to becoming a manufacturing leader on the continent.

Applications for the first cohort are now open and can be submitted through the UNDP website until December 25, 2024. Startups from across Africa will be selected bi-annually, with the first cohort set to launch upon the hub’s completion.

By fostering innovation and nurturing a new generation of entrepreneurs, the hub seeks to bridge the skills gap, enhance manufacturing efficiency, and accelerate Ethiopia’s industrial growth. As a collaborative effort between UNDP and the Ethiopian government, the hub has the potential to drive transformative change not only in Ethiopia but across Africa’s manufacturing landscape.

Hikmatu Bilali