The Future of Logistic and Supply Chain Management in Africa

Earlier today, I was once again honored to attend and contribute to the Supply Chain Leaders Breakfast Roundtable series discussing the future of Logistics and supply chain management in Africa, hosted by Strathmore Business School (SBS) and facilitated by Prof. Jonathan Annan . The session started with a big-picture imagination. “Imagine an Africa without Boundaries – an African Continent where Commerce takes place freely between States and Goods and Services are exchanged for value without the constraint of Complex and often expensive customs procedures and Tariffs”.

The discussions covered topics such as the growth of Logistics and Supply Chain in the World and Africa, the African Continental Free Trade Area (AfCFTA), Pan-African connectivity, the state of Africa’s economy, the Growth with regards to Professional Certification in Logistics and Supply Chain in Africa, Supply Chain opportunities and the future of SCM in Africa.

Logistics and Supply chains are key enablers in Africa’s transformation. We underscore that the supply chain sector in Africa is witnessing significant growth owing to the increasing demand for e-commerce, the growing need for faster and more efficient delivery of goods and services, the increasing demand for transportation and warehousing services, the rise in digitalization and technology including AI, Machine Learning, and blockchain technology.

This growth is also contributed by Africa’s rich natural resources ranging from?arable land, water, oil, natural gas, minerals, forests, and wildlife, and a growing young population. Given its vast natural resources and strategic location, the African continent has become an important player in the logistics industry. The African Continental Free Trade Agreement (AfCFTA), a flagship project of Agenda 2063 of the African Union and one of the world’s largest free trade areas, has further enabled this growth as it promises to usher in a new era of economic prosperity in Africa.

It was important to point out that the transformative potential of the AfCFTA depends on the free flow of goods across borders — which the logistics sector can help unlock. However, some challenges hinder supply chain expansion in Africa including poor infrastructure limiting connectivity, global commodity prices, rising geopolitical tensions, and instability in many parts of Africa. Some key initiatives and investments like the LAPSSET Corridor, SADC regional infrastructure Master Plan, and Trans-Africa Highways are set to enhance the seamless movement of people and goods across countries and regions.

According to UNECA, the African share of global trade remained at less than 3 percent as of March 2024. It was interesting to note that Africa has 60 percent of the world's uncultivated arable land, where the agriculture sector accounts for 35 percent of Africa's GDP and employs more Africans than any other sector.?Of the 55 African economies, 40 are net food importers. We reiterated that Africa has the potential to be a global agricultural powerhouse and a net exporter of food, with the right policies, political will, improvement in infrastructure, effective operationalization of AfCFTA, linking corridors to ports, investment in AI and automation, digitalization, managing risks in the supply chain, and more investment in keys sectors of the economy- Agriculture, Mining, Manufacturing, services, technologies, and others.

The participants were encouraged to join Professional Certification In Logistics and Supply Chain In Africa including CIPS - The Chartered Institute of Procurement & Supply , Certified Procurement and Supply Professional of Kenya (CPSP-K), Certified Professional in Supply Management (CPSM), Certified Supply and Logistics Professional (CSLP), Certified Supply Chain Professional (CSCP) by APICS among others.

The future of logistics in Africa is bright. This was a great opportunity to connect again with the Supply Chain tribesmen and women and encouraged them to amplify our voices toward building and strengthening African supply chains to contribute to Africa's growth and transformation. Thank you to Prof. Jonathan Annan for sharing nuggets of wisdom.