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Business News of Tuesday, 18 March 2025

    

Source: www.ghanawebbers.com

Africa’s place in the global supply chain: Competing in a world of protectionism and reshoring 

As global supply chains undergo significant transformations driven by protectionist policies and a trend towards reshoring, Africa faces both challenges and opportunities. The COVID-19 pandemic highlighted vulnerabilities in international logistics, prompting many nations to reconsider their dependency on distant suppliers. In this evolving landscape, African countries must strategically position themselves to attract investment and enhance their manufacturing capabilities.

To capitalize on this shift, Africa can leverage its abundant natural resources and youthful workforce while improving trade infrastructure. However, the continent must also address internal hurdles such as regulatory barriers and inconsistent political climates that hinder growth.

Building robust regional trade agreements could fortify Africa’s role in the global supply chain by fostering cooperation among nations. Additionally, enhancing digital technologies will be crucial for streamlining operations and improving competitiveness. As the world moves toward more localized production systems, Africa has a unique opportunity to become a pivotal player in the global economy, provided it effectively navigates these complexities and embraces innovation.