Supply chain management has been quite transformative in African commerce, but how?
Whether globally or in Africa, you can generally trace supply chain advancement to the advancement of technology. By the turn of the century, it was clear that every economic sector would change drastically. Little did we know that supply chain management would be one of the most impacted.
You may recall that for a long time, the role of the supply chain was generally overlooked because the concept wasn’t clear to many economists until the 1980s.
The African economy and its commerce are undoubtedly the fastest rising in the world. With its many cultures and diverse people, the continent has no shortage of beauty. But more than its diversity, policies, and leadership, supply chain has been primarily responsible for this growth.
How is this possible?
1. Goods are now more accessible to customers
Since the beginning, there has never been an issue with manufacturing or selling. And there was never an issue with potential customers. The primary concern was always connecting the manufacturer or vendor to the customers.
The result was a huge gap or divide between the two parties, but with logistics and supply chain, that divide has been fixed. Today, there are several distribution channels and systems by which the manufacturer or business can reach its customers.
Bridging the gap is what led to an economic and commercial boom on the continent. With the supply chain, customers can now make informed decisions, creating a society where money exchange thrives.
2. Rise of E-commerce across the continent
There are over 2.6 billion online shoppers across the globe. However, 388 million of those are Africans. This is a major increase from pre-pandemic numbers. And yet, all these numbers are unimaginable considering the challenges and reviews of the first e-commerce businesses.
Today, it will be near impossible for you to find a city across the world without a striving e-commerce business. However, all of these are not just because of tech advancements.
With supply chain, tech has been able to help African businesses meet their customers’ needs without interacting with them physically.
3. Building a robust Agricultural sector
Although African nations are blessed with fertile lands and hard-working farmers, it wasn’t until businesses in the agricultural sector started exploring supply chain concepts and using them to increase efficiency and effectiveness.
Coincidentally, the sector is now one of the largest on the continent, whether you are solving for impact or market share. It has also contributed significantly to the African economy, making the list of the top GDP contributors to many nations across the continent.
4. Driving policies and infrastructural development
Despite continued growth, it is obvious that infrastructure is still a huge problem across Africa. Think of the constant power outages major economies like South Africa, Kenya, and Nigeria still face.
However, all of these are now changing, with many nations taking measures to ensure supply chain operations are as seamless as possible, which also helps the economy.
More roads are built, investment in energy resources is now common, and stringent custom laws are relaxed across the continent.
As this momentum continues to pick up, Africa will be competing with the major economies and commerce operations in no time.
𝗜𝗻 𝗰𝗼𝗻𝗰𝗹𝘂𝘀𝗶𝗼𝗻 𝘀𝘂𝗽𝗽𝗹𝘆 𝗰𝗵𝗮𝗶𝗻 𝗶𝘀 𝗱𝗿𝗶𝘃𝗶𝗻𝗴 𝗽𝗼𝘀𝗶𝘁𝗶𝘃𝗲 𝘁𝗿𝗮𝗻𝘀𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻 𝗶𝗻 𝗔𝗳𝗿𝗶𝗰𝗮𝗻 𝗰𝗼𝗺𝗺𝗲𝗿𝗰𝗲.
𝗧𝗵𝗲 𝗿𝗲𝘃𝗼𝗹𝘂𝘁𝗶𝗼𝗻𝗮𝗿𝘆 𝗶𝗺𝗽𝗮𝗰𝘁 𝗼𝗳 𝘀𝘂𝗽𝗽𝗹𝘆 𝗰𝗵𝗮𝗶𝗻 𝗺𝗮𝗻𝗮𝗴𝗲𝗺𝗲𝗻𝘁 𝗶𝘀 𝗽𝗼𝗶𝘀𝗲𝗱 𝘁𝗼 𝗴𝗲𝗻𝗲𝗿𝗮𝘁𝗲 𝗻𝗲𝘄 𝗲𝗰𝗼𝗻𝗼𝗺𝗶𝗰 𝗼𝗽𝗽𝗼𝗿𝘁𝘂𝗻𝗶𝘁𝗶𝗲𝘀, 𝗯𝗼𝗼𝘀𝘁 𝗲𝗳𝗳𝗶𝗰𝗶𝗲𝗻𝗰𝘆, 𝗮𝗻𝗱 𝗰𝗼𝗻𝘁𝗿𝗶𝗯𝘂𝘁𝗲 𝘁𝗼 𝘀𝘂𝘀𝘁𝗮𝗶𝗻𝗮𝗯𝗹𝗲 𝗱𝗲𝘃𝗲𝗹𝗼𝗽𝗺𝗲𝗻𝘁 𝗮𝗰𝗿𝗼𝘀𝘀 𝘁𝗵𝗲 𝗰𝗼𝗻𝘁𝗶𝗻𝗲𝗻𝘁 𝗮𝘀 𝗹𝗼𝗻𝗴 𝗮𝘀 𝘀𝘁𝗮𝗸𝗲𝗵𝗼𝗹𝗱𝗲𝗿𝘀 𝘄𝗼𝗿𝗸 𝘁𝗼𝗴𝗲𝘁𝗵𝗲𝗿 𝘁𝗼 𝗮𝗱𝗱𝗿𝗲𝘀𝘀 𝗼𝗯𝘀𝘁𝗮𝗰𝗹𝗲𝘀 𝗮𝗻𝗱 𝘁𝗲𝗰𝗵𝗻𝗼𝗹𝗼𝗴𝘆 𝗰𝗼𝗻𝘁𝗶𝗻𝘂𝗲𝘀 𝘁𝗼 𝗲𝘃𝗼𝗹𝘃𝗲.
Obinabo Tochukwu Tabansi is a supply chain mastro and writer with a decade of experience working in different facets of the supply chain. Today he is living his passion for writing on all things supply chain. His blog, Supply Chain Nuggets, is Africa’s fastest-rising supply chain blog, helping professionals, business owners, and curious minds navigate the supply chain complexities on the continent.
