'Don't forget political insurance in Africa'

Inadequate infrastructure
poses enormous risks to
the movement of cargo
into Africa – and it’s often
not taken into account
during the design phase of
a project.
“More often than not
it is taken for granted
that equipment will just
be delivered,” says Napo
Ramodibedi, CEO of the
Mendi group of companies.
“The fact that there is no
road to the project site is
not factored in.”
Logistics expert Lars
Greiner agrees, saying
with projects in Africa
becoming more remote and
the complexities increasing
there is a need for greater
focus on risk mitigation in
the sector.
“We are seeing more
and more contracts failing
to deliver the anticipated
returns because of the
delays being experienced
on the projects. Costs
increase significantly in this
environment and penalties
start to kick in.”
According to Ramodibedi
it is crucial that logistics
service providers protect
themselves against risk
when operating in the
African environment –
and that includes political
insurance.
“The environment can
change very quickly and
being prepared is what
makes the difference.
Implementing sound risk
management is essential.”
CAPTION
Inadequate infrastructure poses enormous
risks to the movement of cargo into Africa.