COVID-19 will change the way Africa does business with the world

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COVID-19 will change the way Africa does business with the world

According to Africa trade data, the value of commodities exported by African countries totalled USD 440.6 billion in 2019, while products imported totalled USD 523.1 billion servicing 1.3 billion people. I believe that the supply chains that have been disrupted by COVID-19 are presenting a fantastic opportunity for forward-thinking entrepreneurs.

 

Due to COVID-19 lockdowns, both Africa and the rest of the world is experiencing significant supply and distribution chain disruption and everyone’s guess is as good as another’s as to what the “new normal” of doing business will be.

 

I believe that over the recovery period, countries on the African continent will increasingly look to localize and regionalize the manufacture and supply of essential goods and reduce their dependence on the East.

 

When I look at the discussions we are having with family offices and investors, it is clear that they see opportunities in the fields of Food (Supply and distribution), Energy and Communication.

 

One of the key takeaways from the “lockdown” environment is that we are behind the curve when it comes to investments digital technology such as internet infrastructure, mobile devices, laptops and tablets.

 

With the increase in industrialization, entire new micro-economies will emerge including opportunities in the fields of digital technology, specialized waste management and manufacturing.

 

As we brace for the ramping up to the COVID peak, African businesses need to assess how we will start the recovery. COVID-19 has highlighted that supply chains that are dependent on low-cost imports will not be immune to future pandemics, global trade shocks and restricted movement across borders in a sustainable manner. This means that it is imperative that we continue to invest and develop our own industrial and manufacturing capacity.

 

Africa has been described as one of the last frontier markets for those who have patient capital and a desire to invest in infrastructure. For the brave African entrepreneur, the years ahead will hold many opportunities and we must look forward with optimism.

 

If you share this view and want to discuss your capital raising for your projects then please don’t hesitate to get in touch.

By |2020-06-30T14:41:31+02:00Jun 30th, 2020|Capital Raising, Foreign Markets, Industrialisation, Manufacturing|0 Comments

About the Author:

Nadia is experienced in industries ranging from FMCG to manufacturing and mining. Her skills lie in business analysis, financial/business modelling and accessing developmental funding. She has a BCom Finance (UJ) and another BCom in Economics & Econometrics (UJ). She has also been accredited with the UNDP for Supplier Development.

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