A news release by the United Nations Conference on Trade and Development (UNCTAD) in Nairobi, published August 16, paints a rosy global supply chain picture of Africa.
All pointers in the report show that Africa has what it takes to make inroads beyond the cottage industry and attract major global investments.
The report cites a rise in valued-added goods from the continent that can foster self-reliance, boost production and improve wages.
Africa boasts the advantage of being a young market with growth potential for key business and agricultural players who are increasingly seeking diverse investment markets for distributing risk.
Key stats that could change the supply chain face of the continent
Africa could reduce insolvency if it maximized on its global supply chain. UNCTAD points out that the continent pays back loans at an interest four times higher than that charged on the United States and eight times that of European borrowers.
The youthfulness of the continent is a boon for the future workforce. At the same time, the emergence of a formidable middle class has already created a brave new market for hi-tech product manufacturers.
E-commerce, especially focusing on swiftly-moving agricultural merchandise such as fruits and flowers has blossomed a high-potential niche in Africa. This is going hand-in-hand with the rise of fintech in emerging financial hubs like Kenya,
Echoing the remarks of UN secretary General Antonio Guterres, UNCTAD Secretary General Rebeca Grynspan recommends the fixing of risk-associated “asymmetries.”
Only by reexamining debt issues and investing in local supply chains can developing economies reduce their current credit risk status.
Agrifood Systems the ultimate weapon over food insecurity
The above report comes on the heels of another report that recommends the utility of agrifood systems to break the hunger spell.
Agrifood systems refer to a careful interconnected web of how food grows, how it is delivered and how it is stored and processed.
These systems are the ultimate answer to the globe’s “most important challenges.” This according to Corinna Hawkes, Director of the Division of Food Systems and Food Safety at the Food and Agricultural Organization (FAO).
The agrifood system in Africa is currently being buoyed by e-commerce but it is receiving a setback from climate change which affects how food grows. It is also affecting food prices, key among these being cocoa: in West Africa,, cocoa prices have been high for three years partially owing to unusually heavy rainfall and pests.
In conclusion, the UN highlights that diversity is the solution to all global chain supply issues in Africa, particularly because it also contributes to biodiversity in agriculture.