Page 49 - Logistics News - Issue 01 - 2024.indd

EMERGING MARKETS

Global logistics execs foresee

surge of African investment

Nearly 62 percent of global logistics professionals say their companies
are planning additional or first-time investments in Africa, according to a Agility’s Vice

closely watched yearly industry survey. Chairman,
Tarek Sultan.

he survey of 830 logistics executives is part (9) is Africa’s most digitally ready and the continent’s
of the 15 annual Agility Emerging Markets highest-ranked country in any category.
th
T Logistics Index, a snapshot of industry sentiment
and ranking of the world’s 50 leading emerging markets. More than 63 percent of survey respondents say
The index ranks countries for overall competitiveness their companies continue overhauling supply chains by
based on their logistics strengths, business climates spreading production to multiple locations or relocating
and digital readiness – factors that make them it to home markets and nearby countries. China, the
attractive to logistics providers, freight forwarders, air world’s leading producer, stands to be most affected:
and ocean carriers, distributors and investors. In the 37.4 percent of industry professionals say they plan
2024 index, the rankings of most African economies to move production/sourcing out of China or reduce
changed little from a year earlier, but businesses investment there.
indicate they are looking ahead at massive population
growth and trade expansion spurred by the African Shipping and logistics costs that soared during the
Continental Free Trade Area (AfCFTA). COVID-19 pandemic and its aftermath are still climbing,
but at a slower rate, the survey found. One way shippers
“This is the most optimism we’ve seen about Africa expect to cope is by increasing the use of digital freight
in the 15 years of the index,” says Agility Vice Chairman forwarding from 37.8 percent today to 52 percent in five
Tarek Sultan. “Africa’s population will double by 2050 years.
when one in four people on the planet will be African.
International businesses realise that the time is now for John Manners-Bell, Chief Executive of Ti, says:
Africa – they need to invest, establish their brands and “Supply chain managers are still coming to terms with
develop the next generation of African talent if they’re the political and economic instability characterising
going to ride the coming wave of growth.” the post-COVID-19 global economy. Geopolitical
relationships are changing rapidly and this is having a
China and India were one and two in the 50-country major impact on international trade and risk profiles.
index rankings. In Africa, Egypt (20), Morocco (22), Businesses need to be alive to the opportunities and
South Africa (24) and Kenya (25) were the top threats that exist in emerging markets and use data,
performers, followed by Ghana (31), Nigeria (36), Tunisia such as the Agility Emerging Market Logistics Index, to
(37), Tanzania (41), Algeria (42), Uganda (43), Ethiopia inform agile decision-making.”
(45), Mozambique (46), Angola (47) and Libya (50).
Transport Intelligence, a leading analysis and
Egypt has Africa’s highest ranked domestic logistics research firm for the logistics industry, has compiled the
opportunities – 13 in that category; South Africa (15) index since it was launched in 2009. View the
th
was tops in Africa for international logistics; Morocco 2024 Agility Emerging Markets Logistics Index at
(12) has Africa’s best business fundamentals; and Kenya https://emli.agility.com/. •

www .l o g ist i csn e w s .c o .z a I S S UE 01 – 2024 47