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Africa Poised to Emerge World Low-Cost Manufacturing Hub-IDC

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The latest analysis from the International Data Corporation (IDC) Manufacturing Insights points to the way that the amount of investment flowing into African countries and the number of global brands investing in Africa has risen sharply in recent years.

For many low-cost manufacturers, the future lies in undeveloped regions such as Africa, the Insight reveals.

These manufacturers will encounter various issues and risks along the way, but many proven, profitable examples exist of successful manufacturing investments in African countries.

The inherent proposition of the low-cost manufacturing model is forcing many global manufacturers to re-align their strategies and constantly seek new, low-cost manufacturing opportunities in emerging economies.

Some traditional hubs for low-cost labor (e.g., China, Taiwan, India, and Malaysia) have seen a gradual increase in their labor costs as they successfully move up the value chain in their quest to meet higher quality standards.

“Some major manufacturing brands like H&M, Coca-Cola, GE, Pepsi, Nestle, and Renault have managed to leverage opportunities’ in Africa,” said Martin Kuban, IDC Manufacturing Insights’ lead research analyst for Central and Eastern Europe, the Middle East, and Africa (CEMA). “Africa has also seen a massive increase in foreign direct investment (FDI) from China in recent years, which means even Chinese manufacturing companies are keen on tapping into low-cost options.”

There are several factors driving this growing manufacturing trend in Africa, including the cheap labor force and the abundance of raw materials and low cost agricultural products.

However, there are numerous challenges that must also be addressed. Corruption, excessive bureaucracy and undeveloped financial systems are among the biggest issues.

“It is extremely difficult, and in some cases impossible, to succeed in certain areas without a local partner or the favor of the authorities,” continued Kuban. “Limited education levels and poor infrastructure compound the matter for many manufacturers. And in some regions, political instability and unrest must be considered above all other factors and inevitably impacts the attractiveness of the proposition for foreign businesses.”

Despite these perceived negatives, it is impossible to ignore the role that IT can play as an enabler of faster development for manufacturers operating in Africa.

IT deployment is much simpler in emerging African factories as vendors are often able to design IT environments from scratch due to the lack of existing infrastructure.

And with major declines in the prices of handheld devices, mobility can now be adopted without much difficulty by companies and individuals.

Such capabilities can be leveraged easily by manufacturers, both on the factory floor and for enhancing workforce management.

This will give an immediate boost to process efficiency and operational quality, potentially paving the way for Africa to take its place as the undisputed low-cost manufacturing hub of the world.

IDC Manufacturing Insights is focusing on the latest developments in the Middle East and Africa region in its upcoming CEMA research.

And the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets, IDC helps IT professionals, business executives, and the investment community make fact-based decisions on technology purchases and business strategy.

More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries worldwide.

For more than 49 years, IDC has provided strategic insights to help our clients achieve their key business objectives.

IDC is a subsidiary of IDG, the world’s leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com.


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E-Business

Galaxy Backbone Celebrates the Federal Government’s Paperless Civil Service Milestone

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Galaxy Backbone (GBB) aligns with and celebrates the successful announcement by the Office of the Head of the Civil Service of the Federation on the achievement of a Paperless Civil Service, a significant milestone in Nigeria’s public sector reform and digital transformation agenda.

The milestone was formally highlighted at a press briefing led by the Head of the Civil Service of the Federation, Mrs. Didi Esther Walson-Jack, who commended Galaxy Backbone for its sustained support and contribution throughout the implementation of the programme.

GBB has played a critical role in enabling this transition by providing secure, scalable, and shared digital infrastructure that supports the digitisation of government processes across Ministries, Departments and Agencies (MDAs). Through the 1Government Cloud, MDAs have been empowered to migrate from paper-based workflows to digital platforms, improving efficiency, collaboration, data security, and service delivery across the Federal Civil Service.

In addition, GovMail, GBB’s secure government email platform, has strengthened official communication, enhanced records management, and reinforced cybersecurity standards—key pillars in sustaining a paperless operating environment.

Galaxy Backbone acknowledges the collective efforts of the Office of the Head of the Civil Service of the Federation, Permanent Secretaries, Directors of ICT, consultants, partners, and dedicated public servants whose commitment and collaboration ensured the smooth delivery of this initiative.

The Managing Director/Chief Executive Officer of Galaxy Backbone, Prof. Ibrahim Adeyanju, was represented at the press briefing by Akintayo Bamisaye, Acting Group Head, Research, Digital Innovation and Skills Department (RDIS).

GBB describes the achievement as a strong close to 2025 and reaffirms its commitment to supporting the Federal Government in building a modern, efficient, and digitally enabled public service.


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Jumia CEO says Black Friday Signals Nigeria’s E-Commerce Maturity

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At the close of 2025, Temidayo Ojo, the CEO of Jumia Nigeria, reflected on a year-end shopping season that points to the growing maturity of the country’s e-commerce market. “Black Friday is no longer a single, short-lived spike in activity,” he said.

“It has become a familiar, anticipated moment in the retail calendar, where consumers shop deliberately and with confidence.”

Preliminary KPIs for the two months ended November 30, 2025, show strong year-on-year growth in both orders and Gross Merchandise Value (GMV), with GMV growth outpacing order growth. This indicates that customers are placing fuller, more considered baskets rather than shopping in fragmented transactions. Nigeria ranked among Jumia Group’s better-performing markets, with engagement remaining steady throughout the Black Friday period rather than spiking briefly and tapering off.

A key factor behind this performance is the growing familiarity of consumers with online shopping. Customers are increasingly leveraging platform features such as saved carts, brand stores, and price comparison tools to plan purchases in advance. This trend suggests that digital commerce is becoming embedded in everyday habits rather than being viewed as a one-off event.

Ojo also highlighted the role of Jumia’s JForce network in connecting digital commerce to local communities. “Our agents are critical to ensuring that customers across Nigeria, including secondary cities and smaller communities, have access to variety, consistent pricing, and reliable delivery,” he said. “During peak periods like Black Friday, JForce agents can respond faster, serve more customers efficiently, and build stronger local relationships. This isn’t just a distribution channel—it’s a pathway to sustainable income and inclusion.”

Reflecting on the overall performance, the CEO concluded: “What we’re seeing this year-end is steady engagement across categories, stronger consumer confidence, and partners like our JForce agents benefiting from increased activity.

“It confirms that Nigeria’s e-commerce ecosystem is maturing, growing in a more structured and resilient way. As the December Holiday Sale continues, we expect these patterns of familiarity, trust, and participation to sustain momentum and drive both commerce and community impact across the country.”


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Galaxy Backbone Tops FG’s Website Performance Ranking

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Galaxy Backbone Limited (GBB) has been ranked first overall in the 2025 Federal Government Website Performance Scorecard.

Galaxy Backbone Tops FG's Website Performance Ranking

This is a landmark achievement for Nigeria’s digital economy.

The ranking, conducted by the Bureau of Public Service Reforms (BPSR), is the definitive benchmark for digital excellence and transparency across all Ministries, Departments, and Agencies (MDAs).

Professor Ibrahim Adepoju Adeyanju, managing director and CEO of Galaxy Backbone, received the award during a ceremony in Abuja.

He described the feat as a validation of the agency’s“Nigeria First”data sovereignty strategy and its relentless pursuit of service excellence.

This recognition comes as the Federal Government intensifies its push to achieve a fully paperless civil service by December 31, 2025.

GBB has been the primary architect of this transition through its 1Gov Enterprise Content Management (ECM) platform, which now hosts the operations of almost all federal MDAs.

The award adds to a growing list of accolades for Galaxy Backbone in 2025, following its recent win of the “International Standard Excellence Award for Best IT Service Provider.”

As the central hub for government shared services, GBB’s performance serves as a blueprint for other agencies currently undergoing digital transformation.

With its expanded fiber-optic backbone now covering over 13 states and its secure cloud solutions, Galaxy Backbone remains the cornerstone of Nigeria’s vision to become a leading digital nation by the end of the decade.

 


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