Adebayo Adeleke | CEO | Supply Chain Africa | mail me |
As Africa continues to chart its course to economic prosperity, one vital pillar will be supply chain. A prosperous Africa is a continent exporting finished value-added products to the rest of the world. For this to happen, supply chain must take its rightful place.
Sadly, several African countries are struggling with their supply chain infrastructure and system. South Africa, however, has found a way to make it work, and other African countries must take a cue from her.
Professionalisation of supply chain
South Africa was rated 32 on the Logistics Performance Index by the World Bank, and although it is not the best, we can take what is working, use it as a template for Africa and build on it. I have always said that the next frontier of prosperity in Africa is through supply chain. For this to happen, the following must be done. The first is the professionalisation of supply chain.
If there is one profession we need to professionalise more to advance Africa’s prosperity, it is the supply chain, because trade is just theory until supply chain is involved.
Supply chain can be professionalised through academics, mentoring and coaching, certification, research, and development. Currently, most of Africa’s supply chain is driving resources out of the continent and not within the continent. This shows how crucial professionalising supply chain is on the continent.
Professionalizing through academia
There are about 1,600 universities or equivalent in Africa, and currently only about 150 offer supply chain courses. Many offer some aspects of supply chain like; transportation or procurement, and very few have a holistic supply chain curriculum.
The continent cannot move forward in supply chain if people are not first aware of supply chain in academia. It is crucial to state that having courses alone is not enough as that only creates awareness. Africa requires a working supply chain curriculum as supply chain is a crucial business function.
Apart from including supply chain in our academia, other ways to professionalise it include: certification, mentoring and coaching, research and development. In many African countries, all these are lacking.
Professionalising through certification
We have established that what is obtainable in Africa’s supply chain is not obtainable in the rest of the world. This is why Africans must have a unified certification process for anyone who wants to practice on the continent.
Taking into cognisance the peculiarities of African countries, this certification should be in two parts- general and regional.
Professionalising through coaching and mentoring
Coaching and mentoring are other pillars that cannot be overlooked. Africa’s supply chain is in dire need of each one teaching one structure. The continent has over 100 million people practicing supply chain daily and many are making grave mistakes.
Africa’s supply chain will continue to grapple with the rest of the world if we don’t teach and coach younger professionals.
Professionalising through research and development
Research and development is another category that requires focus if Africa will achieve the prosperity it desires. If we are keen on improving Africa’s economy, we must prioritise research and development because it spurs innovation, invention, and progress locally and globally.
This is why many countries don’t have port support or supply chain knowledge, and with the Intra African trade and the Africa Continental Free Trade Area (AfCFTA), Africans need to have accurate knowledge, of not only their country’s supply chain but of other countries within the continent so that trading can work smoothly.
African ecosystems will experience a boost if we take this seriously. Currently, South Africa is in the best position to begin its professionalisation because it has a better supply chain infrastructure and is one of the top three economies in Africa.
As South Africa continues to lead the path to the professionalisation of supply chain, other African countries can take a cue and learn how to do better. If some of these bilateral or trilateral conversations on our supply chain are done, Africa would be better for it as South Africa will get better at using its infrastructure, and other countries’ infrastructure will be elevated.
Improving supply chain infrastructure
“Good logistics reduce trade costs, but supply chains are only as strong as their weakest link. For developing countries, getting logistics right means improving their infrastructure, customs, skills, and regulations.”
– Caroline Freund
Africa can widen its pathway to prosperity by improving road networks, clearing systems, container management, and port systems as these make importing and exporting commodities easier. An increase in exportation means more profitable growth for businesses and the ecosystems supporting trade.
Transforming the other logistical corridors, such as airway, water, and land, also encourages investors to bring in more goods or facilitates exporting more goods outside the country. When all these supply chain infrastructures are improved, export increases, the GDP increases, and prosperity certainly skyrockets.
From the supply chain perspective, we must think of developing policies and logistics that support trade. The AfCFTA, enacted to launch prosperity in the region will only be successful when we enforce trade logistics and professionalise supply chain.
