AFRICA SUPPLY CHAIN & LOGISTICS 101

Africa is the world's second-largest continent after Asia. The continent is huge, having massive deposits of both natural and human resources and vast tracts of undeveloped territory. Despite various Regional Economic Commissions (RECs), the continent struggles economically, resulting in widespread poverty. With a shrinking and politically reinforced regional bottleneck here and there, expanding its market and competing on a global scale becomes a nightmare.

Because of its fragile economy and market, Africa is always struck harder by global economic crises. The trade war between the United States and China has strained the global economy; a no-deal Brexit and the Covid-19 pandemic crippled the global economy and has reduced Africa to its knees. The ongoing conflict between Russia and Ukraine - the two key players and agricultural product exporters, often regarded as the world's breadbasket – also impacted Africa. Africa imports around 90% of its refined products despite having a large deposit of resources for manufacturing these products.

Subregional and intra-African trade alliances are sometimes viewed with prejudice and mistrust because the conditions of the agreement appear to benefit some economies more than others. There is no equitable or equal distribution of advantages. Many of these regional policies also impede effective trade among Africans. Because of selfish economic terms and conditions, African countries find it easier to trade with foreign countries than with their African counterparts. The African market is now at the mercy of the international and foreign governments.

Although Africa is widely viewed as the next large economy, it still has a long way ahead. The covid-19 pandemic exposed Africa's genuine fragility, but it also defined a route for Africa to improve its economy. Similarly, the Russia-Ukraine conflict. It is an excellent opportunity for African countries to capitalize on and minimize their reliance on the foreign market. The only way to do this is through effective and efficient intra-Africa trade.

The introduction of AFCFTA is expected to be a game-changer because it is the world's largest economic organization; 44 countries have already signed the agreement. This book examines the African supply chain, the regional entities, their successes, and the hopeful impact of AFCFTA on transforming the African economy into a significant international leader.