The partnership of the U.S. Trade and Development Agency with Kenya represents a significant step toward integrating Africa into the global semiconductor supply chain. This agreement marks the emergence of the continent as a key player in this high-tech industry.

Africa’s potential in essential minerals

African countries such as Kenya, Nigeria, Rwanda, and Ghana offer abundant essential minerals for semiconductor production. Moreover, these countries are home to a young, tech-savvy population ready to drive innovation and technological progress.

Investing in Africa’s semiconductor industry not only reduces supply chain risks and costs but also promotes:

• Job creation
• Technological progress
• Sustainable economic development

All these aspects combined benefit both African economies and their Western partners.

Semiconductor : USA – Africa partnership

The recent announcement of a partnership between the U.S. Trade and Development Agency and Kenya to boost semiconductor manufacturing in the East African nation is a much-anticipated step. This will facilitate Africa’s involvement in global semiconductor supply chains.

This development marks a turning point for Kenya and the African continent, which is beginning to position itself as an indispensable player in the global semiconductor ecosystem. But this is only the first step in a much broader process.

Rich in resources and boasting burgeoning economies, the continent, particularly East and West Africa, offers the U.S. and the West opportunities to secure essential supply chains. Moreover, this collaboration fosters what could become a new dynamic arena in the global semiconductor landscape. It will also strengthen partnerships with the continent in an increasingly complex geopolitical landscape.

Africa : Land of investment in the semiconductor sector

The economies of Kenya, Nigeria, Rwanda, and Ghana offer particularly fertile ground for investment, innovation, and growth in semiconductor manufacturing. These nations could become essential hubs in a global network that demands resilience and adaptability, as billions of dollars flow into national semiconductor markets, as seen in the U.S., South Korea, China, and the European Union (EU).

The U.S. is developing its semiconductor manufacturing capacity domestically. This is possible thanks to historic direct investments in projects throughout the supply chain, 327 billion USD over the next 10 years. The focus is also on increased coordination with friendly and allied global partners.

African countries have the potential to experience growth and progress by encouraging local value creation. For example, by limiting exports and prioritizing research and development on their territory. This can retain national talent and create jobs in a market otherwise difficult for graduates in science, technology, engineering, and mathematics. Nigeria recently rejected Tesla’s proposal to mine lithium in the West African country because the company was not willing to establish a manufacturing plant there.

Availability of raw materials and reduced operating costs

The availability of local raw materials significantly reduces supply chain risks and costs for producers. Notably, fuel, import/export fees, and other supplier-related issues. Africa should therefore be considered an indispensable element of the semiconductor supply chain. This resource potential represents real investment opportunities in Africa.

Africa’s value proposition, however, goes far beyond resource extraction. Its young, tech-savvy population is a fertile ground for innovation and design. The potential for collaboration between research centers in Nairobi, Kenya, or Lagos, Nigeria, and established Western companies could lead to new advancements in electronic chip technology.

Building a strong partnership with Africa

As global demand for semiconductors increases, Western countries must consider Africa a valuable partner in establishing a robust, diversified, and resilient semiconductor ecosystem and supply chain.

Achieving this requires strategic engagement from African policymakers, the private sector, and the African diaspora to fully integrate the continent into the global semiconductor supply chain and mitigate related risks.

Collaboration and leveraging each region’s unique strengths promote technological progress. The time has come for Africa to shine in the semiconductor field and attract the attention of investors and the international community.