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Cultivating Sources
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Cultivating Sources

Africa’s Chaging Role in Global Supply Chains

The Economist Intelligence Unit
EIU, 2015
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Editorial Rating

7

Qualities

  • Eye Opening
  • Overview
  • Background

Recommendation

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.

Take-Aways

  • Africa shows great potential as a manufacturing and service destination, though the continent still presents political, bureaucratic and infrastructural challenges.
  • Five case studies illustrate how some companies are working to overcome these challenges to stake their claims in the region. British-based Pittards is helping the Ethiopian economy ascend the value chain.
  • Fair-trade company Cafédirect acts as a credit guarantor for its coffee, tea and cocoa producers. General Electric encourages its suppliers to set up in Africa, trains indigenous employees and develops native vendors.

About the Author

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

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