10 Reasons Why Africa is Disconnected from the Global Supply Chain!

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Five years ago, sitting in my office at the global headquarters of Fortune #1; Walmart, I began exploring various ways to introduce Africa into the existing global supply chain conversations. The reality is that Africa and Africans are not engaged - in fact I like to say it was like Africa didn't exist in the context of GLOBAL TRADE - Ask any major buyer around the world if they have ever bought anything at scale from the region and the answer you would get would tell you the truth. The current landscape is such that external Actors play "middlemen role" come into the region to source and aggregate...

So why is this the case?
  • Visibility - there is limited visibility to what Africa has to offer global supply chains and where those resources are and the local players involved act like ghosts.
  • Transparency - The movement of commodities including natural resources like diamonds and precious metals and the price markup along the chain is not transparent. Global buyers want traceability and transparency.
  • Unorganized - The chain is broken because the market is largely unorganized and there is no standardization. A fully mature supply chain has linkages baked in with each players stepping forward to fulfil their roles meeting international standards.
  • Connectivity - If you are not connected to the global discuss you can not participate in global opportunities. It is why members of my network gain access to opportunities because the platform connects them to key stakeholders around the world. Learn more here - https://www.nazaru.trade
  • Education - The local, regional and global markets require different levels of education. When you win in your local market you still need additional information to prepare to work with global players.
  • Legal Structures - Informal trade is prevalent. Formalizing trade has to be underpinned by legal structures. I expect this area to mature over the next 10 years.
  • Quality - Just as China was perceived 30 years ago to be an haven for low quality products - Africa is in the same position now has manufacturing continues to take root. I like to say - begin where you are and innovate over time. Africa also has opportunities to leapfrog if region have the bold leadership for that.
  • Exploitation - The history of Africa is rooted in this and hence there are trust issues that would continue to impact business dealings. African's largely do not trust external players - they might work with you but be assured that they are always looking behind their backs to understand what they might be "giving away". This is perhaps the most sensitive topic and the business community must strive to build long term trust to succeed.
  • Lack of Investments - Since there is little visibility to the investment opportunities in the region they are not able to attract the right type of attention. Going from dependency on Foreign Aid to Foreign Trade will activate investment dialogue that will surely drive transformation on the continent
  • The Last Mile - Agriculture is the Future of Africa however the ability to move products from farm to market is still missing critical elements of Branding, Marketing, Distribution to global chain.


These are all issues I address in my Masterclasses and Coaching programs as I help my clients and members achieve their business, trade and investment goals. As example in the AGOA - Africa Growth and Opportunity Act E-Course I share export opportunities.

Also click here to watch one small example of the success stories of what can happen when there is connectivity - https://www.linkedin.com/posts/toyinumesiri_retail-tradewithafrica-africa-activity-6796559164769402880-oTf4
Members of my Business, Trade & Investment Network are ahead of most. Become a member and learn more here - https://www.nazaru.trade

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