Welcome to your weekly supply chain digest, where we break down the latest trends affecting businesses in Nigeria and across Africa. Brought to you by XNECT HUB – Your source for market and supply chain intelligence. We’re here to keep you informed, without the jargon. Let’s dive into the highlights for the first week of October ending Friday 13th October, 2023.
Assessing Impact: Green Zone, Yellow Zone, and Red Zone
We know that dealing with supply chain complexities can be tough. So, we’ve sorted the recent news and data into three zones – Green, Yellow, and Red, like traffic light colors. This system will help you see which trends could strongly affect your business and which ones are less likely to cause disruptions.
No.1 – In the Green Zone (Least Impact)
In this zone, we explore trends with the least impact on supply chains. They’re noteworthy but won’t shake things up significantly or affect the smooth functioning of supply chains.
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AfDB-Nigeria Partnership for Electricity
Sector(s) Affected: Energy and Power Sectors.
This partnership primarily affects the energy and power sectors. While improved electricity supply is vital for economic activities, the immediate impact on supply chains may be limited. Nigeria, as the location, stands to benefit from enhanced electricity infrastructure, which can positively influence various industries. (Learn More)
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Standard Chartered Report on African Exports
Sector(s) Affected: Import and Exports
This report has relevance for the import and export sectors. The impact on supply chains is likely to be gradual, depending on the implementation of trade agreements. The entire African continent may benefit from the promotion of exports, particularly under the African Continental Free Trade Agreement (AfCFTA). (Learn More)
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2Africa Undersea Cable landfall in Nigeria
Sector(s) Affected: Various Sectors
This infrastructure development affects various sectors by providing improved connectivity and digitalization. While the immediate supply chain impact may be limited, this project can benefit regional blocs like the Economic Community of West African States (ECOWAS) and the entire African region by facilitating more efficient communication and data exchange. (Learn More)
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CBN Lifts FX Restrictions
Sector(s) Affected: Imports, Food Commodity, Construction, Aviation
The sectors affected include imports, food commodities, construction, and aviation. The removal of FX restrictions may not significantly disrupt supply chains but could influence specific industries and imports. Nigeria, as the location, may experience changes in import dynamics. (Learn More)
No.2 – In the Yellow Zone (Moderate Impact)
Moving into the Yellow zone, we highlight economic indicators and industry trends that have a moderate impact on supply chains. These factors may cause some disruptions or challenges but are not severely detrimental to overall supply chain operations.
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Afrifoodtech funding in Africa
Sector(s) Affected: Food Commodity
This trend primarily impacts the food commodity sector. The decline in funding may moderately affect supply chains related to cold storage, logistics, last mile delivery, procurement, and traceability solutions offered by Midstream tech companies in Egypt, Nigeria and Ghana. These countries and others on the continent may face challenges in the development and adoption of crucial agrifood technologies. (Learn More)
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Africa’s Cryptocurrency Market Growth
Sector(s) Affected: Financial Sector
The financial sector is the key area affected by the growth of the cryptocurrency market in Africa. While this growth is significant with Kenya, Nigeria and South Africa leading the trend in African Cryptoboom, its direct influence on traditional supply chains is limited. Kenya, Nigeria, South Africa and other African nations may need to adapt to evolving financial technologies.. (Learn More)
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Cement Pricing Wars in Nigeria
Sector(s) Affected: Construction Sector
This development has a moderate impact on the construction sector. Pricing wars among cement manufacturers may influence the availability and cost of building materials, potentially affecting infrastructure and real estate projects in Nigeria, particularly as well as some neighbouring countries. (Learn More)
No.3 – The Red Zone (Severe Impact)
And now to the red hot zone where we highlight economic indicators and industry trends that have a severe impact on supply chains. These are factors that can cause significant disruptions, delays, or challenges in supply chain activities and require immediate attention and mitigation efforts.
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Chicken scarcity in South Africa
Sector(s) Affected: Food Commodity
This news has a severe impact on the food commodity sector, especially in South Africa. The shortage of broiler chicks and avian influenza outbreak can disrupt the production and distribution of poultry products, significantly affecting food supply chains in South Africa. (Learn More)
Conclusion
In conclusion, while these trends vary in their immediate and long-term impacts on supply chains, it’s crucial to consider the interactions between these developments and other economic, regulatory, and social factors. As we continue to navigate the ever-evolving supply chain landscape in Nigeria and Sub-Saharan Africa, staying informed and adaptable is key to addressing challenges and seizing opportunities. Stay tuned for our next digest to remain ahead of the curve in the dynamic world of supply chains.
