(MENAFN- Middle East) KUWAIT CITY, Kuwait.
– Nearly 62% of global logistics professionals say their companies are planning additional or first-time investments in Africa, according to a closely watched yearly industry survey.
The survey of 830 logistics executives is part of the 15th annual Agility Emerging Markets Logistics Index ( ), a snapshot of industry sentiment and ranking of the world’s 50 leading emerging markets.
The index ranks countries based on their overall competitiveness, logistics strengths, business climate, and virtual readiness, points that make them hot for logistics providers, freight forwarders, air and ocean carriers, distributors, and investors. In the 2024 index, the ratings of most African economies were little changed from last year, but companies say they foresee large population growth and industrial expansion driven by the African Continental Free Trade Area (AfCFTA).
“This is the highest optimism seen about Africa in the 15 years of the Index,” says Tarek Sultan, Vice President of Agility. “Africa’s population will double by 2050, when one in four people on the planet will be African. International corporations know the time is right for Africa: they want to invest, identify their brands, and expand the next generation of African skills if they want to take advantage of the next wave of growth.
China and India rank first and second in the 50-country index rankings. In Africa, Egypt (20), Morocco (22), South Africa (24) and Kenya (25) were the best performers, followed by Ghana (31). ), Nigeria (36), Tunisia (37), Tanzania (41), Algeria (42), Uganda (43), Ethiopia (45), Mozambique (46), Angola (47), Lithrougha (50).
Egypt has the highest-ranked domestic logistics opportunities in Africa: 13th in this category; South Africa (15th) leads Africa in foreign logistics; Morocco (12) has the most productive industrial base in Africa; Kenya (9) is the country with the highest digital position in Africa and the highest-ranked country on the continent in all categories.
More than 63% of survey respondents say their companies continue overhauling supply chains by spreading production to multiple locations or relocating it to home markets and nearby countries. China, the world’s leading producer, stands to be most affected: 37.4% of industry professionals say they plan move production/sourcing out of China or reduce investment there.
Shipping and logistics costs that soared during the COVID pandemic and its aftermath are still climbing but at a slower rate, the survey found. One way shippers expect to cope is by increasing use of digital freight forwarding from 37.8% today to 52% in five years.
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COUNTRY RANKINGS
Transport Intelligence ( ) (Ti), a leading analysis and research firm for the logistics industry, has compiled the Index since it was launched in 2009.
John Manners-Bell, CEO of IT, said: “Supply chain managers are still grappling with the political and economic instability that characterises the post-COVID global economy. Geopolitical relations are rapidly transforming, which has a primary effect on foreign threat profiles and industries. Companies want to be aware of the opportunities and threats that exist in emerging markets and use data, such as that in the Agility Emerging Market Logistics Index, to inform agile decision-making.
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