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 week ending September 8th, 2023.
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.
Plastic Waste and Circular Economy Trends
In Ivory Coast, West Africa, companies are taking innovative approaches to tackle plastic waste and promote circular economy initiatives. While these efforts are commendable for sustainability, they won’t cause major disruptions to supply chains.
Clean Energy Investment Trends
The United Arab Emirates pledged $4.5 billion to clean energy initiatives in Africa, a positive step. However, it’s still in its infancy and won’t dramatically impact supply chains just yet. But keep an eye out; this could change how goods are produced and transported in the future.
Electric Mobility Expansion Trends
Spiro, a startup from Benin Republic, is making strides with its fleet of electric bikes, recently launched in Kenya. While this is a positive development, it’s still early days. As electric vehicles gain popularity, they may alter transportation and distribution methods, eventually affecting supply chains.
No.2 – In the Yellow Zone (Moderate Impact)
Here, we highlight trends that could create moderate disruptions in supply chains.
Fintech Security Trends
Nigeria faces security issues with fintech apps, which could increase cybersecurity risks. It’s crucial for businesses using these apps to address these vulnerabilities.
Cyber Fraud Trends
Ghana has already suffered significant financial losses due to cyber fraud. This could impact supply chains by causing payment delays or customer losses.
Rail Transportation Revenue Trends
Nigeria’s rail transport sector is booming, but increased costs might prompt supply chain adjustments. Flexibility is key in logistics.
No.3 – In the Red Zone (Severe Impact)
Here, we delve into trends that could seriously disrupt supply chains
Brent Crude Price
Brent crude oil is nearing $100 per barrel, which could drive up foreign exchange earnings. However, Nigeria’s refined imports will not be impacted and transportation and production remain expensive as import subsidy has not been replaced by any local manufacturing capacities.
Depreciation of the Naira and Dollar Woes
The depreciation of the Nigerian Naira could lead to higher import costs, affecting prices and potentially causing shortages. Meanwhile, a weaker dollar could offer some relief but won’t offset the Naira’s troubles.
Cocoa Harvest Woes
Heavy rainfall is affecting cocoa harvests in Nigeria, Ghana, and Cote d’Ivoire. In Nigeria, the matter is made worse by the widespread lack of drying technology like ovens. This could lead to cocoa shortages, impacting the chocolate supply chain.
