A survey by Agility Emerging Markets Logistics Index for 2016 has indicated that South Africa, Nigeria, Kenya and Ghana are the most promising markets in Sub-Saharan Africa.
In its latest ranking that rates the above four countries higher than others on the continent noted that poor infrastructure has slowed down Nigeria while chronic power outage has stood in South Africa’s way.
Agility is a global provider of integrated logistics with efficiency in supply chains in some of the globe’s most challenging environments, offering personal service and customized capabilities in developed and developing economies alike
Geoffrey White, Chief Executive Officer (CEO) of Agility Africa in a statement on Monday, noted that the annual survey reported that Africa’s requirement for logistics services and supply chain expertise was huge and growing daily.
It said that consumer spending by a fast-growing middle class was as important a growth driver for Africa.
The survey which indicated that Nigeria’s enormous potential had become clearer since its recent decision to update the methods by which it collected economic data however, said the most promising markets would have been huge markets if not for poor infrastructure, lack of power generation and corruption.
Despite the recent growth and surging foreign investments, Gregory White noted that Sub-Saharan Africa remained a challenging frontier as many of the companies that needed logistics to enter the markets did not know how to get started in Africa or were not willing to take the risk.
The survey observed there are lot of opportunities in the the market for the front runners are courageous enough to navigate the risks and nurture African talent.
“There are huge opportunities for those seeking to build long-term sustainable businesses that would bring world-class practices that could adapt to local conditions”.
According to the statement, the Agility Emerging Markets Logistics Index, now in its 7th year, offers a snapshot of logistics industry’s sentiment.
It said that South Africa had Africa’s most advanced logistics industry and transport infrastructure, but its economy had been hobbled by chronic power shortages.
It also identified slumping commodity prices, a plunging currency and labour unrest as factors militating against the South African economy.
The statement ranked the following countries at the bottom of the ladder- Ethiopia (37), Tanzania (40), Kenya (43) and Uganda (45).
Among countries in North Africa, Morocco ranked 20, trailed by Egypt (22), Algeria (30), Tunisia (36) and Libya (41).
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