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 September 29th, 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 September.
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.
- The Africa Risk-Reward Index Report
Sector(s) Affected: Foreign Investment, Business Operations
The report highlights the safest African countries for doing business in 2023, which can attract foreign investors. While it doesn’t directly disrupt supply chains, it may influence investment decisions and economic activities in these countries which includes Mauritius, Botswana, Namibia, Senegal, South Africa, Tanzania, Rwanda and .Côte d’Ivoire. (Learn More)
- Nigeria SEC’s Efforts in Agricultural Sector and Oil Refinery Inauguration for Exports.
Sector(s) Affected: Agriculture, Oil and Energy
These efforts can positively impact the agricultural and energy sectors in Nigeria, potentially improving supply chains through increased agricultural exports and energy production. (Learn More)
- i3 Initiative for African Healthcare Supply Chains
Sector(s) Affected: Healthcare, Technology
The i3 initiative rolled out its recent funding support for 29 healthcare supply chain startups across Sub Saharan African countries which includes Ghana, Nigeria, Kenya, Tanzania, Rwanda and Ethiopia. This new i3 measures can indirectly enhance healthcare supply chains in the region by fostering innovation and technological advancements. (Learn More)
- Remittances to Sub-Saharan Africa
Sector(s) Affected: Financial Services, Household Consumption
Increased remittances can positively impact the financial well-being of households and potentially stimulate consumption, indirectly affecting supply chains through increased demand for goods and services. According to new report by the World Bank and KNOMAD, The increase in remittance flows to the region supported the current accounts of several African countries dealing with food insecurity, supply chain disruptions, severe drought (Horn of Africa), floods (in Nigeria, Chad, Niger, Burkina Faso, Mali, and Cameroon), and debt-servicing difficulties. (Learn More)
- Fiducia’s Supply Chain Financing Solution for Nigeria and other African Countries
Sector(s) Affected: Finance, Small and Medium Enterprises (SMEs)
Fiducia’s supply chain financing solution operating in Nigeria and targeting expansion to other African markets aims to benefit SMEs, potentially improving their financial stability and capacity, which could indirectly enhance supply chains by supporting small businesses. (Learn More)
- Ukraine’s Grain Hub Plans in Kenya
Sector(s) Affected: Agriculture, Food
The establishment of grain hubs in Africa, including Kenya, may enhance food security and availability, potentially improving supply chains for agricultural products.
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.
- Nigerian Passport Devaluation
Sector(s) Affected: Travel and Tourism, Cross-Border Trade
The devaluation of Nigerian passports and visa-on-arrival denials can disrupt travel and business activities between Nigeria and other countries, potentially affecting supply chains due to delays and difficulties in obtaining visas. (Learn More)
- Ukraine’s Grain Storage Capacity Loss
Sector(s) Affected: Agriculture, Food, Energy
According to a recent evaluation, the loss of grain storage capacity in Ukraine due to the cumulative impact of Russia’s unrelenting invasion can disrupt grain supplies to countries like Nigeria and other Sub-Saharan African countries, leading to increased prices for wheat-based products, corn shortages, and potential disruptions in energy and fertilizer supplies. (Learn More)
- NUPENG Strike in Nigeria
The planned strike by the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) can disrupt fuel supplies, affecting transportation and energy availability, which may lead to disruptions in various supply chains. (Learn More)
September Week 4 Wrap Up
In summary, several factors, such as passport devaluation, geopolitical conflicts, and labor strikes, have the potential to disrupt supply chains in Nigeria and other Sub-Saharan African countries. On the other hand, initiatives aimed at improving various sectors, including agriculture, healthcare, and finance, can positively impact supply chains in the region.
Staying informed about supply chain trends in Africa is crucial for businesses to adapt and thrive in this dynamic environment. Understanding these trends allows you to make informed decisions and implement strategies to mitigate potential disruptions or capitalize on new opportunities. Keep an eye on these developments as we continue to provide you with weekly updates on the ever-evolving African supply chain landscape.
