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Africa’s manufacturing sector in 2021

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Africa is a continent full of opportunities for growth. One of the ways to propel development in Africa is through a robust manufacturing sector. An industry widely viewed as a path to economic growth on the continent. For this reason, the African Continental Free Trade Area was launched in 2018. Manufacturing holds potential as Africa navigates the path to recovery post-pandemic. Experts project that the sector could hit 666.4 billion dollars by 2030. That’s over $200 billion more than it did in 2015.

Mohammed Dewji is Africa’s youngest billionaire. He said, “we need to do value addition. And by doing value addition, you don’t use as much as foreign currency that you would otherwise use, and you would employ a lot of people. So, I think manufacturing is the core, I mean, of importance for the African continent.’’

Trading under the African Continental Free Trade Area has kicked off. And Africa’s largest economy is planning a leading role in this $3.4 trillion market. Nigeria took a while to sign up to the agreement. However, when it finally did, the most populous nation on the continent said it cannot afford to be left out.

Local Chief Economic Strategist about the West African nation’s preparedness to harness the dividends of this free trade zone. Professor Ken Ife at the New Partnership for Africa’s Development (NEPAD) Nigeria said that, ”we are still the 8th largest producers of oil in the world and the biggest in Africa. There are 90 million SMEs (Small and Medium Scale Enterprises) in Africa, forty five of those are in Nigeria. If Nigeria could have 50% of SMEs in Africa even though our population is just 18% and GDP is 18% of the whole of Africa’s GDP, it does tell you that entrepreneurship is a comparative advantage for Nigeria”.

In the Republic of Congo, some relief is provided for those who rely on electronic products to do business. Importation of computer equipment will now be free of taxes and duties. This means local students can purchase laptops at lower prices for example. It’s part of a move that Brazzaville hopes will boost its digital economy.

Expanding small-scale activity in manufacturing is an important part of the development process. In sub-Saharan Africa, this has been made possible by an expanding market for domestic produce. Assuming the pandemic has not undermined this too badly, there is no reason why this trend should not continue in the decade to come.

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Logistics

Five things to consider when choosing a courier company in SA

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Parcel between two people

These are the five main considerations for you, and your company to help choose an effective
courier company in a South African context.

Track record of the courier company

When choosing a courier company, it’s important to do your research on the company to ensure, they have a reliable service that you and your company can rely upon them going forward.

The Specific requirements of your company

This is important, as larger shipments of items i.e., bulk quantity may require you to use a more specific courier companythat meets your demands.

Cost of business

Consider the main cost of the service you will be using and the fact that part of this cost will need to be passed onto the end consumer.

Scale of their network

The size of the company’s courier network may also play quite a large role depending on your distribution needs.

You may want to rely on a company who owns a larger courier network, and which is able to transport your items to a wider variety of locations in South Africa.

How does the company mitigate risks?

It is worth considering what measures each service takes to assure the safety and security of your items.

Given the South African context, where the situation on the ground could at times be considered unstable in certain areas, routes or times.

The risk mitigation services of the courier companyin question, is an important element to consider guaranteeing the safety of your items going forward.

Conclusion

These are some of the main considerations you may want to make to take, in order to ensure your items, get to their intended destinations stress free.

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Logistics

The Top Five Logistics Companies in Africa.

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There are a few aspects to observe when looking to find what makes the best logistics provider from their rates, reach, their ability to adapt to change and, most importantly experience and organisation of their human resources.

1.            DHL Logistics:

DHL is comfortably the world’s leading logistics company, founded in 1969, this logistics giant has a footprint in over 200 countries and a strong employee base of 590,000 people worldwide with a revenue topping €81.7B as of 2021.  It is also leading the way in innovation of new bespoke solutions to assist communities such as parcel drone delivery of medicines in East Africa.

View their website: https://www.dhl.com/za-en/home.html

2.            UPS Supply Chain solutions:

Founded in 1907, UPS is one of the most recognisable logistic brands in the world. Operating in over 220 countries this USA based company manages just over 534,000 employees, turning over just under $97.3B in 2021. In 2020 they lead innovation in delivery of the Covid-19 Vaccine with research into safe drone delivery of medicines in hard to reach places.

View their website: https://www.ups.com/za/en/Home.page

3.            Kuehne + Nagel:

Operating in over 100 countries with close to 78,000 employees, and a turnover of over $34.5B in 2021, Switzerland based logistics company Kuehne + Nagel has managed to become a powerhouse in the logistics industry.  Developing the largest sea freight forwarder in the world specifically in the fields of Full Container Load (FCL) and Less than Container Load (LCL).

View their website: https://home.kuehne-nagel.com/

4.            DB Schenker Logistics:

Operating largely across Europe and North Africa, with more than 140 years’ experience in the Logistics & Supply Chain this German based company employees over 75,800 people and delivers to over 2,000 territories – with a turnover of €21.4B in 2021. They focus on providing the best and most efficient customer service that aims to make the supply chain more user-friendly. They are also the first company to utilise autonomous electric trucks, the T-Pod, on public roads for deliveries.

View their website: https://www.dbschenker.com/za-en

5.            DSV:

A reasonably new player in the logistic industry DSV has fast climbed the ranks to become one of the top providers and most recognisable brands in the supply chain industry. Operating in 75 countries with over 75,000 employees worldwide. They are operating non-stop dispatching over 15,000 trucks per day and moving 650,000 tons of air freight every year – bringing in $28B in 2021.

View their website: https://www.dsv.com/en

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Logistics

KZN FLOODS: Durban port operations, logistics grind to a halt

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Trucks travelling on the N3 between Durban and Pietermaritzburg came to a grinding halt outside Mariannhill Toll Plaza on Tuesday after deadly floods, that have killed at least 20, people hit KwaZulu-Natal overnight, with Durban and surrounding areas among the hardest-hit regions.

Many residents are still missing and the SANDF had been activated to assist the province with rescue operations, KZN Cooperative Governance and Traditional Affairs MEC Sipho Hlomuka said on Tuesday morning.

Operations at Durban port had also stopped, according to industry sources, however, a notice issued by Transnet to stakeholders on Monday night noted that port operations were on standby for heavy rains and winds on Tuesday. “Landside and waterside operations are on standby for wind and heavy rain from 19:15 on 11/04/2022. New/unutilised appointment slots will not be available until landside resumes operations. Do not dispatch trucks to the terminal without appointments as they will not be processed,” Transnet said.

Wind speed had been recorded at gusts of 70 kmph, it added.

KZN roads, including sections of the M4 between Durban and Umhloti and the N2 south of Durban, were closed as water gushed down the freeway near the old Durban International Airport. Social media posts showed overturned trucks and containers that had dislodged from vehicles strewn across the N2 freeway, south of the city.

Road Freight Association CEO Gavin Kelly said logistics operations in the province had largely come to a standstill and the Durban port was not operating.

KZN COGTA MEC Sipho Hlomuka said the weather was continuing to cause havoc across the province on Tuesday morning.

 “Residents residing in low-lying areas are urged to seek shelter on higher ground, disaster management teams have opened public facilities such as community halls for those that need shelter.  The Department of Cooperative Governance and Traditional Affairs is working together with social partners and sister departments to ensure that there is interim relief for those that are housed in shelters. So far, the extent of the heavy rains is across the province, with eThekwini being one of the most affected areas,” he said.

The department’s teams were still collating the extent of the damage.

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