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 last week of September ending Tuesday October 31st, 2023.
Ranking the Impact: Green Zone, Yellow Zone, and Red Zone
We understand that navigating the complex world of supply chains can be challenging. To make things easier, we’ve categorized the latest news and data into three zones based on their potential impact. This ranking will help you better understand which trends may have a significant effect on your business and which ones are less likely to disrupt your operations.
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.
No Fly Zone
There were no significant trends with least disruptive impacts on supply chains in Nigeria and other Sub-African countries in the last week of October
No. 2 – 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.
- Latest Investment in Innovation Africa (i3) Initiative
Sector(s) Affected: Healthcare
Locations: Various African countries
The i3 initiative’s support for healthcare startups in Africa is expected to have a moderate impact on healthcare supply chains. It will likely enhance the development of digitally-enabled healthcare solutions, positively impacting healthcare delivery in several African countries. (Learn More)
- AFEX’s New Pricing
Sector(s) Affected : Commodity Trading, Finance
Locations: Nigeria
AFEX’s new pricing methodology aims to improve transparency and accessibility in the commodities market in Nigeria. It is expected to have a moderate impact on the commodity trading sector. (Learn More)
- Nigerian Gas Production and Global Demand
Sector(s) Affected: Energy, Gas
Locations: Nigeria and global gas markets
The expected global gas glut and declining fossil fuel demand may have a moderate impact on Nigeria’s energy market, challenging its reliance on fossil fuels. (Learn More)
- Upstream Oil and Gas Investment in Africa
Sector(s) Affected: Oil and Gas, Energy
Locations: Various African countries, with a focus on Nigeria
The significant capital expenditure in the oil and gas sector is likely to have a moderate impact on the industry’s growth in Africa, with a focus on Nigeria. However, challenges like crude oil theft may affect the sector’s potential. (Learn More)
- Pakistan as Kenya’s Top Export Destination
Sector(s) Affected: Agriculture, Export
Locations: Kenya and Pakistan
The growth in exports to Pakistan is expected to have a moderate impact on Kenya’s export market, particularly in tea and other agricultural products. It represents an opportunity for economic expansion (Learn More)
- Collaboration for Rail Infrastructure Development in Southern Africa
Sector(s) Affected: Rail Infrastructure
Locations: Southern Africa and the UK
The collaboration for rail infrastructure development is expected to have a moderate impact on improving rail connectivity in Southern Africa. It will enhance transportation and logistics, benefiting various industries (Learn More)
- Increased Demand of Metal for Clean Energy Technology Development
Sector(s) Affected: Clean Energy, Mining
Locations: Democratic Republic of Congo, Zambia, and other African countries
The increased demand for minerals like lithium, graphite, nickel, and cobalt for clean energy technologies is likely to have a moderate impact on the mining sector in Africa. It offers opportunities for economic growth but also requires careful resource management.
No.3 – 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.
- KFC Closures Due to Bird Flu Outbreak
Affected Sector(s): Fast Food, Poultry, Agriculture
Locations: Lesotho and South Africa
The bird flu outbreak and KFC closures have a severe impact on the fast-food supply chain and poultry industry in Lesotho and South Africa, causing a regional shortage of chicken and eggs. (Learn More)
- Trade Misinvoicing in Africa
Affected Sector(s): Trade and Finance
Locations: Various African countries
Trade misinvoicing has a severe impact on tax revenue and economic management in Sub-Saharan African countries. It is a significant barrier to unlocking trade potential and could continue to undermine economic stability and development in the region. (Learn More)
