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This is an
incredible
34% of the total population. Furthermore, opportunity for logistics countries had to produce what they
the middle class comprises passionate needed to feed themselves.
consumers who prefer to buy in Africa companies to connect Meanwhile, gas shortages have forced
rather than from abroad. That said, African Africa’s trade to the the EU to diversify its energy resources and
salaries are still relatively low, so there knock on Africa’s door. While EU market
are a lot of made-in-Africa products for world and the world’s demand tripled, gas production in Senegal
export, creating massive opportunities. trade to Africa, whilst and Mauritania increased tenfold, creating
For example, Ethiopia’s fast-paced textiles- opportunities for equally higher revenue.
for-export manufacturing industry simultaneously promoting Businesses previously dependent on
now has major international companies intra-Africa trade. China are also turning to the African
manufacturing or sourcing textile and continent to mitigate risk. That’s because the
HENNIE HEYMANS
apparel products from the country. CEO, SUB-SAHARAN AFRICA new gas production has raised the demand
DHL EXPRESS for cheap electricity, the new supply of which
COULD LOGISTICS is attracting manufacturers. Even Chinese
BE THE KEY? CAN PUBLIC POLICY HELP companies, which previously exported 72%
Logistics is arguably the critical link in OIL THE (SUPPLY) CHAIN? of the clothes bought by Africans, have
Africa’s anticipated trade acceleration, Another reason things are different this time moved production to Ethiopia and Egypt to
which means logistics companies can is that many African governments, which remain competitive. Ethiopia is now a major
capitalize on the explosive trade growth have been obstacles to trade growth, are now exporter of shoes, for example.
ahead. As the only company with air on board. And we’re seeing steps to digitalize
services to every one of Africa’s 51 nations, and simplify trade and customs processes. IS THERE A CAVEAT?
we are well-positioned to support the What’s more, sophisticated talent in Despite all the positivity, experts still advise
continent’s trade and GDP growth. science and finance is being cultivated on caution. Governments across Africa must
We’re also working closely with African the continent rather than brought in from invest in durable peace, end troubling wars
entrepreneurs to help them access the abroad. For example, Senegal’s African in some parts of the continent, and support
global marketplace and increase cross- Institute for Petrochemicals now trains local this new shift.
border trade. For example, our GoTrade chemical engineers rather than importing That’s because more trade within Africa
initiative aims to support international them, which comes at a higher cost. In will bring stability to Africa. More economic
trade and economic growth by increasing addition, Rwanda is quickly becoming a interdependence lowers the likelihood of
the number of small and medium-sized platform for tech. The Kigali Innovation Hub conflict and leads to more peace. It’s one of
companies trading across borders. has been dubbed ‘the Silicon Valley of Africa,’ the many benefits of globalization.
As a result, we’re helping a with young African talent now settling in Although the AfCFTA trade agreement,
wide range of businesses Rwanda rather than traveling to the US to which began on January 1, 2021, is getting
expand abroad and work. Meanwhile, the Africa Academy of off to a slow start, it will, over time, reduce
bring in valuable Sciences is developing engineers locally in customs barriers between African countries,
new revenue – Senegal, Rwanda, and South Africa. increase connectedness, and accelerate
from tea and State-of-the-art cold chains are also African growth.
coffee makers in the works. The Addis Ababa Bole
in in Tanzania International Airport in Ethiopia is a great THE FUTURE OF AFRICA
to fashion example, offering a more advanced setup IS IN AFRICA
designers in than some European solutions. That’s Despite the media’s focus on political drama
Nigeria. attracting major manufacturers like H&M, and conflict in Africa, insiders believe we
Tesco, Gap, Belk, and Walmart to produce are seeing the dawn of a new era – and that
goods locally. The country’s dozen new it won’t be a false dawn this time.
investment platforms, all connected by African youth today are as educated
air, mean products can arrive in America, and competitive as their European
Europe, or Asia the next morning. counterparts. Forward-looking business
leaders are pouring tens of billions into
TURNING CHALLENGES INTO the region. And public policymakers are
OPPORTUNITIES? helping to pave the way.
Challenges elsewhere can also be a source It’s an exciting time to support this
of hope for Africa. The war in Ukraine and growth – to help connect Africa to the
China’s restrictions on international travel world and the world to Africa.
in the past three years have brought a new
sense of urgency to Africa’s policymakers This story was originally published in
and the desire to become self-reliant. Delivered, which is DHL’s global hub for stories
For example, restrictions on agricultural and insights.
goods like rice from India meant African Source: https://www.dhl.com/global-en/delivered.html
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