Thursday, September 13, 2012

Supply Chain Group Plans to Offer Logistics Assistance in Emerging Market

Import Export Opportunities Expected to Increase
Shipping News Feature

CHINA – AFRICA – As China announces a new package of investment and development measures to African countries, South African based supply chain providers Barloworld Logistics, part of the Barloworld Group, says it is well placed to help clients with new opportunities which arise across the continent and on key import/export trade lanes. At the recent meeting 4th Forum on China-Africa Cooperation (FOCAC) in Beijing ministers and government officials from China and 48 African countries announced that joint trade for 2011 hit a record high of US$166.3 billion an increase of 83% from 2009. China’s direct investment in Africa last year reached US$14.7 billion, up 60% when compared to 2009.

During the Forum, China announced new measures to promote its co-operation with Africa including development assistance, credit and financing, training and trade co-operation. The 2012 Barloworld Logistics sponsored ‘Supply chain foresight’ research survey, agreed with other BRICS analyses when it revealed that a vast range of industries all expect to grow in Africa in the next few years. With the fast growth of GDP in some regions, demand for cargo services across most industry sectors should increase over the next five years promoting Mr William Tang, Managing Director for Far East business to comment:

“China is Africa’s largest trading partner after the EU and the demand and new initiatives announced at FOCAC demonstrate long-term commitment to supporting development across the continent. We are also seeing Chinese companies investing in projects across a range of industries including energy, aviation, construction and manufacturing throughout Africa. Demand for Chinese goods and products have also grown among African consumers.”

According to the survey China invests currently 33% of its total outbound investments for Africa in infrastructure development. Other main investment flows involve the Mining sector (40.74%), Business services (21.58%) and Finance (16.4%). Mr Tang said that there will be some exciting opportunities for Chinese companies in Africa in the next five to ten years and is confident that by using their experience of working in the African emerging markets his company can provide a logistics platform to support customer expansion at both origin and destination.