Maersk suspended vessel transits of the Red Sea and Gulf of Aden in January after attacks on its vessels by Houthi rebels.
Charles van der Steene, our regional president for Maersk North America, stated to CNBC the other day, that the diversions from the Red Sea could last into Q2 and Q3 of this year.
Maersk has added vessel capacity to offset delays due to the longer transit around the Cape of Good Hope, but is advising clients to prepare for more uncertainty in global trade routes.
The African Continental Free Trade Area (@AfCFTA) could play a pivotal role in facilitating intra-African trade & strengthening regional supply chains in high-tech sectors.
UNCTAD’s Economic Development in Africa Report 2023 examines the continent’s potential to become a major participant in global supply chains for high-technology sectors like automobiles, mobile telephones, renewable energy and health care.
Recent disruptions due to trade turbulence, economic uncertainty, a global pandemic and geopolitical events have compelled manufacturers worldwide to diversify their production locations and geographical footprint.
This presents opportunities for African governments and businesses to position the continent as the new destination for global supply chains.
It has an abundance of critical minerals needed for high-tech and green products and is home to a young, tech-savvy population, an adaptable workforce and a burgeoning middle class.
The African Continental Free Trade Area also offers advantages by easing access to regional markets and strengthening production chains across the continent, helping domestic industries become more prepared for the global arena.
The report recommends policy actions to overcome supply chain hurdles African countries face, including poor logistics, low levels of technology, fragmented markets, limited capital sources, and weak institutions and regulations.
Global services exports increased 8.1% year-on-year in the third quarter of 2023, reaching around $1.99 trillion.
Travel exports increased 28%, continuing the post-pandemic recovery. Meanwhile, transport exports continued to decline and fell by 15.6%.
Find out more on this UNCTAD’s bulletin: https://ow.ly/L0JS50QAeus
Source:UNCTAD
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