Maersk discusses accelerating digital revolution at Africa CEO Forum
Complexities in supply chains have limited the Logistics Performance Index for African countries
Maersk discussed and presented papers on Logistics 4.0: Accelerating Africa’s Digital Revolution at a closed-door session with some of the top CEOs from Africa.
Held on the sidelines of the Africa CEO Forum, the discussion was led by Darryl Judd, Regional Head for Integration and Business Growth, Indian Subcontinent, Middle East and Africa (IMEA), Maersk and supported by the regional leadership team in IMEA, says an official release.
"To participate in global trade, it is extremely important to be competitive at all levels – be it in terms of costs or ease of doing business. Several complexities in supply chains have limited the Logistics Performance Index for African countries in the past. However, a lot of these complexities can be overcome with the use of technology and digital solutions."
Judd says: “Digitalisation is crucial in reducing logistics cost and supply chain complexities, which will in turn improve the Logistics Performance Index in Africa. Enhanced visibility, streamlined procurement processes and data-driven decision-making will drive competitiveness in Africa’s logistics."
Africa’s digital potential
Africa contributes $2.7 trillion to the global economy from the 54 countries that are a part of the African Continental Free Trade Area (AfCFTA), the release said. "However, intra-Africa trade only corresponds to 14 percent of the total trade owing to high tariff and non-tariff trade costs. For example, agriculture contributes to 15 percent of Africa’s GDP and 60 percent of Africa’s employment. The use of mobile apps, digital payments and an increase in e-commerce are levers that can improve intra-Africa trade from agricultural produce and substitute imports."
Across ocean shipping, landside transportation and e-commerce, there are various solutions in the digitalisation space that have the potential to drive greater efficiency, connectivity and trade facilitation. “At Maersk, we are determined to leverage the data available to us by processing it in a way that we can create meaningful recommendations for our customers to mitigate disruptions, save costs and enhance their experience," says Judd. “Our multiple digital solutions have already created value in our customers’ supply chains. The next phase in our digital journey will revolve around machine learning and artificial intelligence.”