Increased trade key for landlocked African countries | Infrastructure news

Access to trade, particularly in landlocked countries such as Malawi, Zimbabwe and Zambia will remain a logistical challenge in the foreseeable future for both South African and global businesses, due to the continent’s lack of infrastructure and challenging customs procedures.

This is according to Bruce Marshall, country manager: Zambia, Zimbabwe and Malawi at Maersk Line. However, he adds that despite these challenges, the continent has massive economic potential and that fostering trade will play a critical role in stimulating the financial services, energy and technology industries, among others.

“Establishing reliable trade lanes between the continent and the rest of the world is key to stimulating Africa’s economy-generating industries, in order to meet the growing needs of its customers. Increasing trade activity between landlocked countries and the rest of Africa and the world will not only stimulate their own economies, but also assist them to become more self-sufficient,” he says.

He says commercial opportunities exist in the energy sector. “This has been recognised by global exporters of energy products such as China. Africa is the ideal place for alternative and innovative energy solutions, as many countries cannot depend on conventional electricity sources.”

China, the biggest exporter to these landlocked regions, supplies solarised traffic and street lights, solar lamps, torches, inverters, generators, solar panels and other alternative energy sources.

Marshall says that there is a strong relationship between Asian energy manufacturers and reliable trade partners that distribute energy products to importers in various African regions. In the past, these regions may have been unable to access international supply chains and global markets due to lack of scale, insufficient export and market knowledge, restrictive investment capacity or lack of transport, cold chains and logistics services.

“Partnering with an experienced trade specialist can help facilitate and unlock the opportunities and commercial prospects available in landlocked African countries. Specialists are able to assist with the challenges, and provide cost-efficient methods of the transportation of goods, as well as shorter transport times, as they are familiar with the quickest routes on the continent,” he explains.

Jonathan Horn, managing director of Maersk Line in Southern Africa adds that trade between Africa and global markets is the cornerstone of sustainable economic growth. He believes the key to achieving optimal trade is a perfect marriage between maritime, road and rail transportation and depot and warehousing facilities. He recommends that businesses looking to explore the opportunities that Africa presents consult experienced trade partners who have been present in the region for several decades.

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