Red Sea Crisis and implications for trade facilitation in Africa

The current crisis in the Red Sea has made global maritime transport more dependent on African ports. While the disruption of shipping through the Suez Canal since last November has led to delays in maritime transport in the East African economies, it has also increased sharply the vessel arrivals in African ports, particularly containerships at the Cape of Good Hope in South Africa. By early March 2024, containership arrivals at South African ports increased by 328% since early December 2023, leading to port congestion in Durban and Cape Town. Port authorities and governments in the region are currently focused on reducing congestion.

However, and to fully take advantage of the maritime business and trade growth opportunities arising from additional vessel arrivals, African countries need to invest in implementing trade facilitation measures, improving port operations, enhancing cargo handling capacity, and strengthening coordination among border agencies. Increased shipping connections to African ports not only generate business for ports but also benefit African trade. Regional cooperation, investment in digital trade facilitation and infrastructure, and development of human resources are the main three pillars required to realise this ambition and effectively succeed in this path.

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Source: UNCTAD