Cairo

Source: Al-Wafd newspaper

Dr. Ali Mohamed Al-Khouri

In recent years, the global supply chain has been under tremendous pressure due to volatility, trade wars, economic insecurity, geopolitical events, and other natural disasters. Despite the negative impact of these disruptions, it has provided the opportunity for the African continent to emerge as an important player in global supply chains.

The African continent also has promising opportunities to transform into a major player in global supply chains, which is considered a comparative advantage, using technology and reaping many benefits, by attracting companies that aim to expand relationships with suppliers.

A report issued by the United Nations Trade Conference last August shows that industrialized countries will work to diversify their production centers to avoid global trade disruptions and their impact on supply chains, especially from Africa, which contains large stocks of important minerals needed for technology-intensive industries, including aluminum. , cobalt, copper, lithium, manganese, and other minerals, and for low-carbon transformation, to have the opportunity to make supply chains green and sustainable, as well as its participation in various trade agreements, and there are many ingredients that qualify it to become a source of basic goods for global supply chains, Especially since it has 48.1% of the world’s cobalt stock, in addition to 47.6% of manganese, the continent is also home to other minerals important for low-carbon transformation, such as chromium, lithium, natural graphite, nickel, niobium, rare earth metals, silver and titanium, all of which will position the continent as a supplier for manufacturing.

Despite the benefits that are unique to African countries that may contribute to the diversification of global supply chains in the high-tech industry, or accelerate the diversification of supply chains, African countries will nevertheless have to take more measures to ensure an attractive environment for the transition of companies, and many mechanisms Which can be applied, including improving strong infrastructure, roads and railways that operate efficiently, implementing policies to improve skills, creativity and use of technology in the production process, and developing policies that encourage the effective allocation of production factors, which may also have a positive impact on wages, to As well as using digital tools to encourage a shorter supply chain and investing innovation in appropriate technical resources in order to bring about successful and effective change, while strengthening, diversifying and improving supply chains successfully and effectively, increasing production efficiency and improving logistics and productivity services by taking advantage of digital technology and artificial intelligence in high-quality products such as Medical and electronic equipment, especially due to the use of technology-enabled digital platforms and services, enabling them to better integrate and coordinate expanded sectors, operations and markets, thus diversifying supply chains.

Africa has promising opportunities to deepen its production in many industries, including the automotive industry, for which encouraging policies must be put in place by providing low interest rates for cars and exploiting the growing demand for cars in Africa. Therefore, coordination must be done to develop regional strategies for cars and development plans to avoid duplication and improve Incorporating low-income countries into large factories, such as Ghana, Kenya, and Nigeria, to deepen parts and component industries, fund technical institutions, and adapt school curricula to reflect new industrial developments.

Africa can compete with other continents to become the leading global market in the supply chain in the future, and policymakers and major companies on the continent must exploit this opportunity and find appropriate financial solutions and tools, to provide capital to African countries and companies in order to invest in tools and projects that will enhance Supply chains in the African continent.