Page 17 - Logistics News - Issue 01 - 2024.indd

S UP P LY CH AIN

Future-proofing the supply

chain in sub-Saharan Africa

By Mohammed Akoojee, CEO and MD for sub-Saharan Africa at DP World

An agile and forward-thinking approach is imperative to expedite change and

enhance growth to achieve optimisation and harmonisation in sub-Saharan (SSA)
supply chains.

rade resilience has emerged as the cornerstone The most prominent supply chain trends for SSA in 2024
of success in today’s dynamic global supply focus on building resilience and sustainability, economic
Tchain industry. Amidst the backdrop of growing sensitivity, flexibility and leveraging technological innovation for

macroeconomic risks and rapid changes in many parts increased visibility.
of the world, this robustness has become essential for

navigating the complex dynamics defining the current Future-proofing the supply chain
trade landscape in SSA and the broader continent. Increasing awareness of environmental, social and governance
(ESG) issues will continue to drive better decision-making in
Africa, with the world’s youngest population and supply chains. The growing call to reduce carbon emissions
growing urbanisation rates, boasts an attractive market and address climate change will continue in 2024, pushing
– both as a global trade partner and within the continent, businesses to adopt electrified or renewable energy approaches.

with intra-African trade expected to increase at a
compound annual growth rate of almost 4 percent over The electrification of vehicles offers a resounding

the coming years. Logistics will continue to play a pivotal opportunity for the industry to meet net-zero targets. Adopting
role in facilitating and enhancing intra-African trade and this approach throughout the value chain will unlock the
connecting Africa and the world, with the African logistics full potential for carbon emission savings. Moreover, skills
industry expected to double over the next three to five and talent development play a crucial role in addressing the
years. industry’s skills shortage by providing training and upskilling
opportunities. Nurturing the future leaders of the supply chain is

However, regional supply chain pressures, such as inefficient vital for sustained digitisation and decarbonisation efforts.

infrastructure and high logistics costs of two to three times
more than leading global economies, significantly impact food Resilient food supply chains

and trade inflation, amplifying challenges in a region already The global climate crisis continues to negatively impact
facing complex dynamics, including political instability and nutritional food sources for millions of Africans every year.
elections in some African countries this year, climate change, Further, roughly 82 percent of Africans facing acute food

food security challenges, global geopolitical tensions as well as insecurity reside in countries of conflict. These challenges
inflation and currency headwinds. have placed increased pressure on the supply chain industry to

establish innovative solutions to improve market access and

Future-proofing supply chains to be more robust and flexible bring essential food products to people across the continent,
not only fortifies SSA’s connection to world trade routes, but also including in remote areas. Cold chain storage will continue to

promotes increased intra-African trade, with integrated supply grow as an impactful solution to reinforce African supply chains
chain solutions becoming increasingly vital to navigate the and equip logistics providers with the infrastructure to address
dynamic trade environment. this growing concern.

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