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Reliable trade lanes key for Africa's economy

Johannesburg - Access to trade, particularly in landlocked countries such as Malawi, Zimbabwe and Zambia, will remain a logistical challenge in the foreseeable future for both South African and global businesses, according to Bruce Marshall, Maersk Line country manager: Zambia, Zimbabwe and Malawi.

He said this is due to the continent’s lack of infrastructure and challenging customs procedures.

"Despite these challenges, the continent has massive economic potential and fostering trade plays a critical role in stimulating various growing industries in the rest of the world, as well as Africa, such as financial services, energy and technology," said Marshall.

“Establishing reliable trade lanes between the continent and the rest of the world is therefore key to stimulating Africa’s economy-generating industries, in order to meet the growing needs of its customers. Increasing trade activity between landlocked countries and the rest of Africa and the world will not only stimulate their own economies, but also assist them to become more self-sufficient."

Jonathan Horn, managing director of Maersk Line in southern Africa, pointed to the United Nations’ Sustainable Development Goals, which will once again be in the spotlight at the UN Sustainability Summit 2015 on September 25 to 27.

The eighth goal is to promote inclusive and sustainable economic growth, employment and decent work for all.

“Regarding the summit, it is important to raise awareness of the importance of trade between Africa and global markets, as it is the cornerstone of sustainable economic growth and can be an engine that drives employment and growth in Africa’s economies,” said Horn.

He explained that the key to achieving optimal trade is a perfect marriage between maritime, road and rail transportation, depot and warehousing facilities.

“Experienced partners possess the necessary expert knowledge to provide solutions and reliable transportation of goods, as well as have representation in the relevant countries,” said Horn.

Marshall said the need for energy in Africa is an example of one of the commercial opportunities present in Africa.

“This has been recognised by global exporters of energy products such as China. Africa is the ideal place for alternative and innovative energy solutions, as many countries cannot depend on conventional electricity resources,” he said.

He explained that energy exporters such as China, a big exporter to these landlocked regions, supply products such as solarised traffic and street lights, solar lamps, torches, inverters, generators, solar panels and other alternative energy sources.

Marshall said there is a strong relationship between Asian energy manufacturers and reliable trade partners who distribute these energy products to importers in various African regions. Some of these may in the past have been unable to access international supply chains and global markets due to lack of scale, export, market knowledge and investment capacity or lack of transport, cold chains and logistics services.

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