Businesses Urged to Cut Supply Chain Vulnerabilities amid Global Shocks

Businesses across Africa are being urged to strengthen their supply chains in the face of mounting global uncertainties, according to stakeholders who gathered at the second African Centre for Supply Chain (ACSC) conference in Lagos. The conference, themed "From Fragility to Foresight: Securing Africa’s Supply Chains amid Geopolitical Shifts," highlighted the vulnerabilities that businesses face due to geopolitical tensions, changing trade policies, and the COVID-19 pandemic.

Dr. Obiora Madu, Director General of ACSC, emphasized that companies cannot solely depend on efficiency as disruptions could be catastrophic. He advocated for diversifying suppliers and identifying weaknesses within supply chains to avoid being reliant on a single upstream provider. COVID-19 exposed the risks of over-dependence on China, while rising energy costs have prompted businesses to explore alternative energy solutions. Madu also suggested using rail and inland waterways to cut logistics costs.

Professor Frank Ojadi of Lagos Business School stressed that the ability to maintain production and delivery during disruptions will become a key determinant of African economies' competitiveness. He called for the development of regional production networks under the African Continental Free Trade Area (AfCFTA) and the use of technology like predictive analytics, the Internet of Things, and satellite data to anticipate supply-chain risks early.

Oladunni Ojowuro, Director of Mechanical Engineering at the Lagos State Ministry of Transportation, underscored the importance of transport infrastructure in securing supply chains. He argued that resilience should be developed proactively, before crises strike, by investing in roads, railways, waterways, ports, and data-driven transport systems.