The Trade in Transition study, supported by DP World, highlights the challenges and opportunities facing African executives as they navigate the complex trade landscape. With 46% of surveyed executives opting to diversify their supplier base globally, the focus is on sustainable growth through regional integration and proactive global engagement.
The study, released at the World Economic Forum in Davos, underscores the importance of the African Continental Free Trade Agreement (AfCFTA) in creating a single market across 54 countries. While progress is being made, challenges such as political instability and slow implementation hinder full realization of the agreement’s potential.
Infrastructure developments are also key to improving trade logistics in Africa. Projects like the Lobito Corridor railway and the rehabilitation of the Tanzania-Zambia railway aim to enhance connectivity and facilitate cargo transport, addressing critical gaps in the continent’s infrastructure.
Global diversification is a strategy employed by many executives to mitigate trade risks, with countries like India, the United Arab Emirates, and Turkey emerging as important trading partners. The shift towards a more diverse supplier base reflects Africa’s ambition to reduce dependency on a single partner and calls for more favorable trade agreements and government support.
Digital transformation is another focus area for African executives, with the use of digital tools and AI-powered technologies becoming essential for improving supply chain efficiency. However, the continent’s data deficit poses a challenge that must be addressed to fully leverage the benefits of digitalization.
Sustainability remains a priority, with access to green technologies and supportive government policies critical for improving climate resilience. Despite financial constraints, African executives recognize the importance of sustainability in the face of climate change and are seeking ways to integrate green practices into their supply chains.
Mohammed Akoojee, CEO & Managing Director of DP World sub-Saharan Africa, emphasizes the importance of sustained investment in infrastructure and capacity building to unlock Africa’s trade potential. By addressing systemic barriers and embracing innovation, Africa can secure a stronger position in the global economy.
John Ferguson, global lead for new globalization at Economist Impact, highlights the forces shaping global trade in the coming years and the need for businesses to stay agile and cost-efficient. By combining risk management with AI experimentation, firms can position themselves to succeed in this new chapter of globalization.
For the full report on African trade trends and opportunities, you can access it here.
