Analyses & Studies
African Trade Outlook 2024: DP World Study Reveals Positive Growth Signals
The 'Trade in Transition' study, commissioned by DP World, a freight and logistics company, reveals positive expectations for Africa's business growth in 2024. Business leaders anticipate growth through technology investments for efficiency and resilience despite economic, geopolitical, and climate challenges.
The study indicates that nearly three-quarters of leaders credit public sector actions, such as boosting regional trade agreements, for helping their supply chain strategies. Forecasts for 2024 suggest a surge in intra-Africa trade due to new trade pacts and technology investments.
However, caution remains among African firms due to inflationary pressures, economic uncertainty, and political instability. The study notes a 7% increase (26%) in executives identifying inflation and economic uncertainty as primary limitations on expanding imports. About 20% point to political instability as a significant constraint, a 4% year-on-year increase.
The African Continental Free Trade Area (AfCFTA) Agreement is expected to drive intra-regional trade growth in 2024. Executives anticipate sub-Saharan Africa as a major export market, with 28% expecting it to be their largest, up from 19% the previous year. Europe (38%) and North America (34%) rank higher.
Government actions, especially enhancing regional trade agreements, are acknowledged by nearly three-quarters of executives for positively impacting their supply chain strategies. Businesses are strategically adopting technology to address challenges, with digital tools for inventory management and advanced automation being key strategies.
Executives see technologies improving supply chain efficiency and resilience as the main source of optimism for the future of global trade. Regional trade agreements, such as AfCFTA, are seen as powerful tools, fostering positive expectations for African trade in 2024.
DP World sub-Saharan Africa CEO Mohammed Akoojee emphasizes the synergy of public and private sector partnerships, enhanced trade agreements, and technological advancements as positioning the continent for growth and resilience. Economist Impact's global lead, John Ferguson, highlights the positive outlook for African trade in 2024 and the role of technology in addressing challenges.
Read more here: https://www.engineeringnews.co.za/article/african-trade-growth-expected-to-be-driven-by-technology-trade-pacts-in-2024-study-2024-01-16
