Leading African economies that have always struggled to improve their infrastructure, business conditions and overall competitiveness are generally performing better against other emerging markets in areas that measure their digital skills and sustainability, the latest rankings shows.
The 2022 Agility Emerging Markets Logistics Index, a ranking of the world’s 50 leading emerging markets places Kenya at No. 28 in the overall Index and 17th in digital readiness. South Africa ranks at No. 24 overall and 21st in digital readiness. Likewise, Ghana is 32nd overall and 23rd in digital readiness.
The Index, now in its 13th year, ranks countries for overall competitiveness based on their logistics strengths, business climates and, for the first time, their digital readiness – all factors that make them attractive to logistics providers, freight forwarders, air and ocean carriers, distributors and investors. The Index includes a survey of 756 supply chain industry professionals.
Digital readiness assesses digital skills, training, Internet access, e-commerce growth, investment climate, and ability to nurture start-ups, as well as sustainability factors such as renewable energy mix, lower emissions intensity and green initiatives.
According to the survey, logistics executives identified the adoption of technology as the leading driver of economic and business growth for emerging markets. The top focus areas for their companies are technology and sustainability.121
Most logistics industry executives see moderate-to-strong economic growth and little or no chance of a recession in 2022, even without immediate relief from the snarled supply chains and sky-high ocean and air freight rates triggered by the COVID-19 pandemic.
Roughly two-thirds of the 756 industry professionals surveyed for the Index believe shippers will see cargo rates come down by the end of the year. Eighty per cent see port bottlenecks, air capacity shortages and trucking issues easing by year end.