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Success in Africa Means Overcoming Supply Chain Challenges

Trade wars continue to heat up across the world, leaving many companies looking to find alternate sources of growth. More and more companies are beginning to recognize the potential for growth on the African continent. There's a good reason to look to Africa, the African Development Bank anticipates growth of over 4% across the continent in 2019, and they see no signs of this growth slowing in 2020. But the economic potential of the continent cannot be fully realized until companies have met the unique logistical challenges that Africa poses.

Much of the African continent suffered greatly from the colonialism of Europe in the past, and the lingering economic effects can still be seen today. As a result, there is significant variation in the levels of infrastructure development between and within countries. While some roadways are in prime condition, others are crumbling or poorly maintained. There is also a significant disparity between urban and rural roads in many countries. Companies seeking to provide supply chain solutions in Africa will need to meet and overcome the challenges presented by the infrastructure in Africa. Urbanization is booming in Africa, leading to densely packed megacities dominating the growth of urban centers. Companies must be able to support the logistics of these dense areas in order to succeed.

Another consideration for economic growth in Africa is understanding and addressing the extensive diversity of the continent. With 54 countries, it would be foolish to treat Africa as a uniform and cohesive unit. Rather it is a vast tapestry of diverse cultures, practices, and preferences. In the supply chain, this means companies must be able to manage changing demand, preferences, and service expectations between areas without sacrificing profits. Companies seeking to be successful in Africa will need to be ready to adapt to these diverse needs and wants.

Routeique can help companies to overcome these and a variety of other supply chain and logistical challenges. Check out our solutions pages to see how we can help manufacturers, distributors, importers, retailers, consumers, and field service providers.

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