Akoojee: How geopolitical tensions impact African trade

The 54th Worth Annual Meetings in Davos, Switzerland, recently concluded, with a focus on discussing the impact of geopolitical tensions on global trade. CNBC Africa's Fifi Peters had an insightful conversation with Mohammed Akoojee, the CEO & MD of DP World Sub Saharan Africa, shedding light on how these tensions are affecting supply chains and trade dynamics across Africa. DP World, a prominent port operator and logistics company, plays a crucial role in facilitating global trade by connecting countries and fostering partnerships. As the world grapples with shifting geopolitical dynamics, Akoojee highlighted the resilience of trade despite challenges in the supply chain. He emphasized the importance of adaptability and diversification in response to disruptions, such as the recent supply chain bottlenecks and geopolitical constraints. Akoojee noted that while current disruptions, particularly around the Red Sea, are impacting shipping routes and increasing freight rates, they are also catalyzing opportunities for reimagining supply chains and trade lanes. One notable trend is the diversification away from China, leading to the emergence of new trade routes and logistics possibilities. This shift presents DP World with the chance to innovate and enhance its global port network to accommodate evolving trade patterns. Turning the lens towards Africa, Akoojee expressed optimism about the continent's trade prospects and DP World's substantial investments in enhancing logistics infrastructure. With a focus on leveraging the Africa Free Trade initiative, which aims to boost intra-African trade, DP World is strategically positioned to capitalize on the continent's economic potential. The company's investments in key gateways like Maputo and Dar es Salaam underscore its commitment to facilitating trade within Africa and beyond. Akoojee highlighted the importance of value-added services and manufacturing in Africa, signaling a shift towards not just exporting raw materials but also promoting industrial development and economic diversification. Addressing the challenges faced by South Africa's ports, Akoojee acknowledged the country's critical role in the Southern African Development Community (SADC) region despite ongoing port inefficiencies. While competition from other terminals like Maputo poses a challenge, South Africa remains a vital trade hub within Africa. DP World stands ready to navigate these challenges and drive innovation in the region's logistics landscape, underscoring its commitment to promoting seamless trade flows and economic growth.