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Cultivating Sources

Africa’s Chaging Role in Global Supply Chains

The Economist Intelligence Unit

EIU, 2015

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As this illuminating report from the Economist Intelligence Unit reveals, Africa holds a number of drawing cards as a supply chain hub, including ample raw materials, cheap labor costs and relative proximity to Europe. More and more, Africa’s national governments are laying out the welcome mat of incentives for companies, while the continent’s small but growing middle-class consumer base should spur increased local demand. getAbstract recommends this timely study on a growing region to operations executives contemplating a move into Africa.

Summary

With a growing middle class, improving infrastructure, plentiful natural resources and labor costs in some areas a fraction of those in China, Africa is an attractive destination for manufacturing and services. Though the continent still presents political, bureaucratic and infrastructural challenges, the region holds vast potential, as five case studies illustrate:

Pittards – In Ethiopia since the early 1900s, this UK-based leather goods producer has recently expanded there by acquiring a tannery and opening factories, thus helping the economy ascend the value chain. The firm addresses quality-control issues with its raw materials...

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The Economist Intelligence Unit is an independent research and analysis organization.

Cultivating Sources

Africa’s Chaging Role in Global Supply Chains

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