Omolabake Fasogbon
African businesses face rising costs, production delays and shortages as geopolitical tensions, and changing trade policies expose weaknesses in supply chains, stakeholders have said.
They spoke recently at the second African Centre for Supply Chain (ACSC) conference in Lagos, themed, “From Fragility to Foresight: Securing Africa’s Supply Chains amid Geopolitical Shifts.”
Director General, ACSC, Dr. Obiora Madu, said businesses could no longer rely solely on efficiency and urged companies to diversify suppliers and identify vulnerabilities across their supply chains.
“Efficiency is not enough any longer because disruption will kill you completely,” Madu said.
He said companies should maintain alternative suppliers and examine their suppliers’ own sources to avoid dependence on a single upstream provider.
Madu stated the COVID-19 pandemic had exposed the risks of excessive dependence on China, while rising energy costs were forcing businesses to adopt alternative energy solutions.
He also called for greater use of rail and inland waterways to reduce logistics costs.
As for Professor Frank Ojadi of Lagos Business School, the ability to continue producing and delivering goods during disruptions would increasingly determine the competitiveness of African economies.
He said countries must develop regional production networks under the African Continental Free Trade Area (AfCFTA), asking.
Ojadi also advocated the use of technology, including predictive analytics, Internet of Things and satellite data, to identify supply-chain risks early.
Director, Mechanical Engineering, Lagos State Ministry of Transportation, Olasunkanmi Ojowuro remarked that transport infrastructure remained critical to supply-chain security.
“Resilience cannot be built after the crisis arrives. It must be engineered before the crisis,” he said.
He called for investment in roads, railways, waterways, ports and data-driven transport systems.