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Instability adds to costs of West African logistics

27 Jun 2014 - by Ed Richardson
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Freight would be
flowing more freely
in and out of West
Africa were it not for
instability brought about by
population growth, political
tensions, mismanagement
and drugs.
These risks all raise the
costs of providing logistics
for the countries in the
region, which have some of
the highest population
growth rates in the
world.
According to a
report issued by
the UK House of Commons
Foreign Affairs Committee,
Niger and Chad have the
world’s highest fertility rates
(7.6 per maternity-age female
in Niger), “with Mali and
Burkina Faso not far behind”.
If trends continue, it is
estimated that by 2050
most of these countries’
populations will have more
than doubled. Nigeria’s will
be 440 million, making it the
world’s third most populous
country.
West African countries
have recognised the
security challenges.
In May 2014 John
Dramani Mahama,
president of
the Republic
of Ghana and
current Ecowas
(Economic
Community of
West African
States)
chairman,
called a
meeting of
heads of
state to
“review
the
security situation in the
region, particularly in
Northern Mali and Northern
Nigeria, as well as the
political situation in Guinea
Bissau”.
While the meeting
condemned incidents of
terrorism, kidnapping
and hostage-taking in the
affected countries, it could
offer few practical solutions
apart from
calling for
talks between
the warring
parties.
According to
the West Africa
Commission
on Drugs
(WACD),
the region’s
combination
of “political
instability,
unemployment
and corruption” is proving
increasingly attractive to
those trafficking cocaine and
heroin from South America
and Asia into Europe and
the US.
Companies moving freight
from the region into Europe
and the United States can,
therefore, expect the cargo
to be delayed for thorough
inspection.
The WACD report – “Not
Just in Transit: Drugs,
the State and Society in
West Africa” – notes that
the area has
also become
a producer
and exporter
of synthetic
drugs such as
amphetaminetype
stimulants
(ATS), which
are not only
consumed in
the region but
also shipped
to south-east
Asia.
The commission says
the growing presence of
drugs and drug money risks
undermining the economic
and political stability
achieved by West African
countries that have only
recently emerged from years
of conflict and violence.
Logistics companies
opening up offices in the
region would need to heed
the warning that there is a
rising human cost as “more
West Africans take drugs,
exacerbating public health
problems such as HIV and
hepatitis C”.
On the plus side the
economies of West African
countries are among the
fastest-growing in the world.
There is a rapidly
increasing demand to move
project cargo, bulk cargo,
fast moving consumer goods,
agricultural produce and
more.
Shippers and logistics
companies stand to benefit
from the boom – or suffer
major losses if they do not
recognise the risks.

INSERT
Logistics companies
stand to benefit from
the boom — or suffer
major losses if they
do not recognise the
risks.

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