Across Africa, governments are promoting industrialisation while encouraging businesses to reduce waste and keep materials in use for longer. Many manufacturers, however, especially the smaller ones, can’t afford the advanced technologies often associated with greener production.
This has created the impression that sustainability is a luxury only large, well-funded businesses can pay for.
We are researchers who help businesses build and manage supply chains. Our recent study of manufacturing firms in Ghana suggests there’s another path to sustainability. We collected data from 250 locally owned small and medium-sized manufacturing enterprises. We then built a model to examine how manufacturers can use what they already have and learn from others to become more sustainable without relying entirely on expensive new technologies.
Our findings are important for the circular economy. This is about reducing waste and keeping products and materials in use for as long as possible through reuse, repair, recycling and re-manufacturing.
We found that manufacturers can reduce waste and be more competitive by:
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Learning from existing technologies. This includes studying and taking apart competing foreign products to understand how they work. Also, visiting competitors’ production facilities and learning from their reports.
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Adapting what they learn to local needs.
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Working more closely with suppliers, customers and other partners to access resources, share knowledge and solve problems together.
This pathway is not unique to Africa. Chinese companies such as Huawei and Geely are examples. They learned during their development from relatively small emerging-market firms into major global innovators. Huawei acquired and absorbed technological knowledge from others. Carmaker Geely learned from established automotive technologies and partnerships before developing its own.
Our research suggests this approach can also support the circular economy. This is important because moving towards a circular economy often requires manufacturers to change how products are designed, produced, reused and recovered. Learning from existing technologies means businesses need not develop expensive new ones from scratch.
Building on what already exists
We surveyed 250 locally owned small and medium-sized manufacturing enterprises in Ghana. They were across industries – food processing, electronics, textiles, machinery, healthcare and automotive manufacturing.
The purpose of our research was to challenge the assumption that innovation requires breakthrough technologies, scientific discoveries or companies pouring millions into research and development.
Our key findings were threefold.
Firstly, not all businesses need to start from scratch. One way is through reverse engineering. When firms understand the components and design features of existing technologies, they can use what they know to adapt and innovate. For example, manufacturers in our study reported buying products made by foreign competitors and taking them apart to understand how they work.
Secondly, learning from existing technologies is not enough. Manufacturers also need resources and expertise to put that knowledge into practice. We found that firms built relationships with suppliers, customers, government institutions and NGOs to draw on resources and expertise they might not have themselves.
Thirdly, businesses need to make creative use of these resources. Their advantage comes from combining what they learn with the resources and expertise available to them. For example, firms in our study reported using resources from outside to improve existing products. They developed new product designs and improved production processes.
Bringing together knowledge, resources and creativity can help manufacturers come up with circular practices.
Winning formulas
Businesses do not have to do this on their own. A circular economy depends on businesses learning from one another, sharing resources and solving problems together.
We found that manufacturers achieved the greatest benefits when technological learning was combined with strong collaboration across supply chains and other stakeholders. Working with suppliers, customers, universities, industry associations and government agencies gives businesses access to technical knowledge, finance and complementary capabilities.
These relationships can help firms produce things more sustainably.
For smaller manufacturers, collaboration can provide expertise and resources they would struggle to develop on their own.
Our findings also challenge the notion that manufacturers must choose between competitiveness and sustainability. African manufacturers can pursue both. For example, firms in our study reported improving production processes to reduce waste and increase energy efficiency. They reported the same in redesigning products for repair, recycling and remanufacturing.
What governments can do
Discussions about African manufacturing often focus on what businesses lack: capital, advanced technologies and research infrastructure.
Our findings tell a different story.
Supporting sustainable manufacturing should involve more than helping businesses purchase new technologies.
Firstly, they should strengthen innovation ecosystems. This means creating an environment where manufacturers can easily connect with universities, research institutions, financiers, suppliers and government agencies. Governments can help build these systems by supporting innovation hubs, shared research and testing facilities. They should encourage technical training and funding for businesses and researchers to work together.
Secondly, governments should encourage collaboration between manufacturers, universities, suppliers and industry associations. The UK’s Catapult Network, for example, brings businesses and researchers together. It gives firms access to specialist expertise, research facilities and opportunities to develop and test technologies. Manufacturing USA is similar, bringing government-supported institutes, manufacturers, universities and other organisations together to solve shared problems.
Thirdly, governments should make it easier for companies to exchange technical knowledge and practical solutions. They could support industry workshops, demonstration centres, shared technology facilities and training programmes where manufacturers can learn from researchers and one another. Germany’s Fraunhofer institutes provide one model. The organisation transfers technological knowledge to industry through public-private partnerships, training and other mechanisms.
These approaches could be adapted to African contexts to help smaller manufacturers access knowledge and resources that would be difficult or expensive to develop on their own.
