EHS AFRICA LOGISTICS’ Post

🌟 Rising Cocoa Prices: A Catalyst for Africa's Transformation 🌟 The recent surge in cocoa prices is more than a trend; it's a clarion call for change and opportunity. As part of Bewell Global, I've always championed the untapped potential of Africa, and today's market dynamics only underscore this belief. 📈 The attached graph showcases the significant increase in cocoa prices over the last five years. But this isn't just a story about market fluctuations; it's about recognizing Africa's central role in the cocoa industry and the broader narrative of value-added transformation. Africa's importance in the global cocoa market cannot be overstated. However, the true magic happens when we move beyond exporting raw beans to embracing the full spectrum of cocoa processing. This shift is not just beneficial—it's imperative for sustainable growth and development. At Bewell Global, we understand that industrialization is key to unlocking Africa's full potential. By encouraging the local processing of cocoa into finished products, we can create a ripple effect of employment, innovation, and economic empowerment across the continent. Let's not just witness the transformation; let's be part of it. Africa's time is now, and its future as the bright star of global development is undeniable. As we say at Bewell Global, "Empower Africa, Brighten the World." #CocoaRevolution #BewellGlobal #AfricaRising #IndustrialEmpowerment #BrightFuture

The World Bank has cautioned that political instability and violence together with disruptions in global trade, especially in the Middle East, might intensify food insecurity challenges in Nigeria and other countries in the Sub-Saharan Africa region. The disclosure was made known in the Global Economic Prospect report, where the World Bank offered insights into its economic outlook for 2024. According to the report, “An escalation of the conflict in the Middle East could exacerbate the situation in Nigeria and other Sub-Saharan African countries in terms of food insecurity. A conflict-induced sustained oil price spike would not only raise food prices by increasing production and transportation costs but could also disrupt supply chains, leading to less affordable food and an uptick in malnutrition rates in the region. Read more: https://lnkd.in/eupVgdNY

In light of the recent World Bank report on food inflation in Africa, highlighted by Business Insider Africa, addressing this critical issue is paramount for the continent's economic stability. Afrique Monitor International is at the forefront of showcasing Africa's potential and forging global connections. We are committed to leveraging such critical insights to promote international collaborations and sustainable growth throughout Africa. For a deeper understanding, you can read the full article [here](https://lnkd.in/eFt2t2ej).

I love a good infographic (who doesn’t?) and this one from IMF PortWatch underlines the striking shift in maritime trade routes continuing 3 months on from widespread rerouting decisions by firms. Since then we’ve had an IMF bailout of Egypt due to a currency crisis (no doubt exacerbated by the collapse in Suez Canal traffic), continued impacts for traders including ship availability, ETS estimates, and costs, and a budding ecological disaster as the Rubymar (loaded with fuel and fertiliser) slowly sinks into the Red Sea. Buckle up as this situation further entrenches leading to continued trade disruption and threats to sustainability efforts and biodiversity. It’s only a matter of time before the economic impacts start to spread outward… (Credit to https://lnkd.in/eArnzu6p where I stole the nifty graph below) #maritime #internationaltrade #supplychain #environment #sustainability #redsea

The Impact of the Oil Market and Oil Prices on the Economy of the African Continent Introduction: The African continent, rich in natural resources, has been profoundly influenced by the dynamics of the global oil market and fluctuations in oil prices. This article explores the multifaceted effects of the oil market and oil prices on the economies of Africa, examining both challenges and opportunities presented by this crucial commodity. Oil Dependency and Economic Significance: Oil plays a pivotal role in the economies of many African countries, serving as a significant source of government revenue, foreign exchange earnings, and investment opportunities. The oil sector contributes to GDP growth and drives economic development in resource-rich nations. Revenue Volatility and Fiscal Management: African economies reliant on oil exports are susceptible to revenue volatility due to fluctuations in oil prices. The reliance on oil revenue poses challenges for fiscal management, as governments must navigate periods of boom and bust in oil markets. Foreign Exchange Reserves and Currency Stability: Oil-exporting countries often accumulate foreign exchange reserves from oil revenues. Fluctuations in oil prices can impact the stability of local currencies, affecting trade balances, inflation rates, and overall economic stability. Investment and Infrastructure Development: Revenue generated from oil exports presents opportunities for investment in infrastructure projects and economic diversification. However, the cyclic nature of oil prices can hinder long-term planning and investment in non-oil sectors. Impact on Government Budgets and Social Spending: Oil revenue fluctuations directly influence government budgets and spending priorities. Windfall profits during periods of high oil prices may lead to increased social spending, while revenue shortfalls during price downturns can result in austerity measures and budget cuts. Trade Balance and Current Account Deficits: Changes in oil prices affect the trade balance of oil-exporting nations, with price declines leading to current account deficits and increased external borrowing. The reliance on oil exports for foreign exchange earnings exacerbates vulnerability to external shocks. Energy Subsidies and Domestic Consumption: Many African countries subsidize domestic fuel prices to mitigate the impact of oil price fluctuations on consumers. However, these subsidies strain government budgets and can distort market dynamics, affecting energy efficiency and sustainability. Regional Disparities and Economic Inequality: Oil wealth is not evenly distributed across Africa, leading to regional disparities in economic development and income inequality. Countries heavily reliant on oil exports may experience higher levels of inequality and social unrest. #urea #urea46 #petroleum #gas #petrochemical #petrochemicals #petrochemicalindustry #industrial #lpg

Did you know? The African Continental Free Trade Area (AfCFTA) , deal creates a continent-wide market embracing 54 countries with 1.3 billion people and a combined GDP of US$3.4 trillion. The African Continental Free Trade Area (AfCFTA) could deliver far greater benefits in terms of jobs, growth, and poverty reduction than previously estimated – making it a potential game changer for Africa’s economic development if its ambitious goals are fully realized.

🛳 Although we do not expect the Red Sea crisis to have a major global impact on international trade and inflation, some countries are always more affected than others. A new UNCTAD study looks at the impacts, including the trade shares of selected countries that pass through the Suez Canal and the Panama Canal, the latter of which is still affected by a severe drought: https://lnkd.in/eHSPTYEX. And don't forget the impact of the loss of revenue for Egypt and Panama. Want to know more? Read our reports on the Red Sea crisis and the Panama Canal: https://lnkd.in/eU9HSutt https://lnkd.in/e4v7AYf6 https://lnkd.in/eMX7pSvb

 Allianz Trade Country risk Atlas - 2024 Allianz Trade has released its first Country Risk Atlas, a study focused on country risk. The Atlas is based on a risk assessment model updated quarterly with the latest economic events and Allianz Trade's data on global defaults and business climate. 🔹Allianz Trade rates Morocco with a B2 score, the highest in North Africa. 🔹Morocco outperforms Algeria, Tunisia, Egypt, Nigeria, and South Africa in terms of rating. 🔹The Moroccan #economy is diversified with robust exports in agriculture, phosphates, and manufactured goods. 🔹Challenges for #Morocco include the slowdown in demand from the European Union and water stress impacting agricultural production.

Supply-side constraints have greatly affected sub-Saharan African economies. The constraints include rising food prices, reliance on energy imports, and exchange rate passthrough due to the strengthening of the US dollar. Countries need to, therefore, implement prudent fiscal and monetary policies in order to reverse the negative effects of the shocks.

African Export-Import Bank (Afreximbank) has unveiled its 2024 report. This confirms the resilience of the African economy and the potential impact of the African Continental Free Trade Area (AfCFTA) Secretariat in shielding the continent from global shocks. #Afreximbank #AAM2024 #Nassau #Bahamas #tradereport #economicoutlook #growth #AfCFTA #intraAfricantrade #economicrisks #Africa