L ook East for growth in demand for logistics services was the recommendation by Ishmael Mubwandarikwa, head of department: marketing and logistics at the Namibia University of Science and Technology. He was speaking at the 10th annual Logistics and Transport Workshop hosted in Swakopmund in September. The theme was “enhancing African trade through hinterland connectivity”. In his presentation Mubwandarikwa said the 2018 Agility Emerging Markets Logistics Index had identified Kenya, Ethiopia, Tanzania and Mozambique as being among the top ten mostpromising logistics markets in subSaharan Africa. The index is compiled through statistical data and input from 500 supply chain and logistics executives around the world. Kenya is ranked third by the executives, after South Africa and Nigeria, Ethiopia has risen two positions from the previous survey, to fifth, Tanzania is down one to sixth, and Mozambique is eighth. Respondents were asked whether East African countries would be able to emulate the success of markets like Bangladesh and Vietnam by creating low-wage manufacturing jobs. The majority (around 75%) of respondents believe that the goal is achievable. “Growth is expected to come from the small to medium-sector manufacturers. “Those with fewer than 250 employees are going to be the biggest beneficiaries of emerging markets growth, industry executives believe. “Fifty-six percent say SMEs operating in emerging markets will grow the fastest while 26.2% say large companies will grow faster,” he said. The opinions of the logistics executives are supported by the latest report by the Institute of Chartered Accountants in England and Wales (ICAEW), dubbed Economic Insight: Africa. It identified East Africa as the best performing region on the continent. “East Africa’s Gross Domestic Product (GDP) will grow by 6.3% this year, significantly more than the continent’s other regional economic communities,” reads the report. ICAEW attributes the region’s strong performance to economic diversification and investmentdriven growth. “Ethiopia remains the region’s powerhouse, with the country’s GDP expected to grow at 8.1% owing to the recent reforms being implemented by new Prime Minister Abiy Ahmed. The report notes that diaspora remittances (money sent from abroad) are a key economic driver for most African countries. “The recent entry of global payment and remittance firms into the East African market has eliminated significant barriers that have hindered consumers and businesses in the region from taking full advantage of remittances,” it says.
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