Supply Chain resilience crucial for economic transformation in Africa

Senior Manager, Supply Chain Operations at Newmont Ghana, Atoapem Frimpong Barimah, has underscored the importance of supply chain in transforming Africa’s economy.

According to him, African nations face challenges in global trade and the pressing need to enhance their participation in value creation to spur economic growth. He highlighted the importance of building resilient supply chains that can withstand disruptions and facilitate seamless economic activity across various industries.

Mr. Barimah indicated that by strengthening supply chains, African countries can effectively transform raw materials into valuable products, creating new opportunities for growth and development.

“In today’s dynamic business environment, supply chain resilience is crucial for economic transformation in Africa. By enhancing supply chains and increasing participation in global trade, African nations can unlock new avenues for growth and development,” he said.

Speaking at the dinner night of the 2024 Supply Chain Research Summit in Accra which was organized by the Centre for Applied Research and Innovation in Supply Chain-Africa (CARISCA) on the topic ‘Has Transformation Ever Been Achieved Without Supply Chain?’, the supply chain expert raised concerns about the disparity in supply chain development between Africa and Asia.

He noted that there is a significant gap in supply chain development between the two continents, which hinders Africa’s ability to compete globally.

Mr. Barimah said Africa has a low level of value addition and participation in global and regional supply chains compared to other regions such as East Asia, Southeast Asia, and Latin America.

Shedding light on Africa’s current state in global trade and supply chain participation, He mentioned that Africa’s share of manufactured goods in total exports is only 34 percent, significantly lower than 83 percent for East Asia and 68 percent for Southeast Asia.

He further noted that only three African countries – South Africa, Egypt, and Morocco – account for 55 percent of Africa’s exports of transformed manufactured goods. This stark comparison highlighted the disparity in value addition and export diversification between African nations and their Asian counterparts.

He underscored the urgent need for Africa to build supply chain linkages within the continent to drive economic transformation. Again strategic investments in infrastructure, technology, and skills development to bolster supply chain resilience and enable African countries to compete effectively in the global market were also called for.

Mr. Barimah believes industry challenges such as quality issues and payment delays contribute to supply chain risk, underscoring the need for collaboration between academia and industry to address these issues through research and implementation. Both sectors bring distinct strengths to the table, with academia providing theoretical support and industry offering practical experience.

By leveraging these complementary strengths and working together, gaps in knowledge and practice can be identified and bridged through iterative processes and innovative solutions. This collaborative approach is essential for enhancing supply chain resilience, mitigating risks, and driving sustainable growth in the industry.