The global supply chain disruptions caused by recent global shocks (e.g. Covid-19 pandemic, geopolitical tensions, climate change impact, etc.) and the resulting global market slowdown have intensified the need to promote more resilient supply chain operations across various regions, and thus mitigating the risks of supply shortages and other repercussions of shocks and vulnerabilities on supply chain efficiency. The risks of concentrating manufacturing and supply chains in a few markets or sourcing sector-specific intermediate goods from a few locations can increase exposure to shocks and disruptions in production networks and supply chains. As a result, industries participating in global supply chains are increasingly seeking to diversify their supply base (number of suppliers) and customer base (number of customers), improve their supply chains with more technology-enabled processes and businesses, and optimize supply chain financing solutions in order to reducing their dependence on global suppliers, sourcing, distribution and other supply chain components.
The course will inform policymakers on these current global trends and how the increasing need for global firms to diversify their supply chains in order to improve resilience can provide African countries with a unique opportunity to make more impactful integration into the global economy. The course will also discuss the opportunities for companies to diversify and relocate part of their supply chains, especially in high-knowledge and technology-intensive sectors such as automotive, electronics, and medical devices, by considering or targeting Africa as a new source market for inputs (e.g. critical minerals and intermediate products) while reducing the costs of transportation and logistics and minimizing risks with supplier delivery delays and other challenges. Growing African consumer markets, with increasing demand for electronics goods and financial technology services, can provide incentives for market proximity and diversification towards the continent. New technologies and manufacturing trends are critical ingredients that allow viable local production, attractive domestic markets for foreign companies (including relocation of production to the continent), and innovative supply chain practices. The course will present key findings and strategies from EDAR 2023 on how best African economies and businesses (including SMEs) can position themselves to become key players in global supply chains.
