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Supply Chain in Africa: An Overview of Kenya, Nigeria, and Mozambique 

  • November 2015
  • -
  • Frost & Sullivan
  • -
  • 85 pages

Summary

Table of Contents

Supply Chain in Africa: An Overview of Kenya, Nigeria, and Mozambique : Planned Port and Transport Corridor Infrastructure to Boost Intra-African Trade

Connectivity between African countries is very limited, and intra-regional trade is currently only 12% of the continent’s total trade. This is mainly due to poor transport infrastructure, conflicting trade rules, and cross-border restrictions. This market insight analyses the base and intermediate chemical supply chain in Kenya, Nigeria, and Mozambique. It provides an analysis of the ports and road infrastructure in the 3 countries, including future projects; challenges that importers may face when importing chemicals into Africa; and what the countries are doing to overcome these restrictions. The market insight also identifies examples of distributors and third-party logistics providers for chemical transport in all 3 countries.

Key Findings

-The chemicals market in Africa depends predominantly on imports, and, in particular, manufacturing output is low in Kenya, Nigeria, and Mozambique.
- Connectivity between the African countries is very limited, and intra-regional trade is currently only % of the continent’s total trade. This is mainly due to poor transport infrastructure, conflicting trade rules, and cross-border restrictions.
- The condition of transport infrastructure in Africa varies significantly; however, in Kenya, Nigeria, and Mozambique the infrastructure is inadequate, which constrains growth in these countries. In infrastructure rankings, Kenya ranks , Nigeria ranks , and Mozambique ranks out of countries analysed by the World Bank Group in 2014.
- Ports are the entry point for most imports in Africa; however, there is a lack of ports that are able to handle the large volume of cargo throughput.
- The majority of freight in Africa is transported via the road network even though the road conditions in most countries are generally poor.
- These hindrances in transport infrastructure are set to change as Kenya, Nigeria, and Mozambique have large projects planned and financed by the private sector that will significantly develop infrastructure, including new ports and transport corridors.
- A number of trade agreements have also been established in order to overcome crossborder trade limitations, which will boost intra-regional trade.

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