DP World’s Akoojee on the shifting landscape in African logistics

Amid the bustling atmosphere of the World Economic Forum in Davos, Switzerland, CNBC Africa’s Fifi Peters had the opportunity to sit down with Mohammed Akoojee, the CEO & MD of DP World Sub-Saharan Africa. As a key player in the global logistics industry, Akoojee provided valuable insights into the evolving landscape of African logistics and the potential impacts of shifting trade dynamics, particularly in light of the inauguration of U.S. President Donald Trump. One of the central themes of their discussion was the significance of the African Continental Free Trade Area (AfCFTA) in fostering regional trade and positioning Africa as a key player in global commerce. Reflecting on the current geopolitical climate, Akoojee highlighted the complexities and uncertainties in global trade dynamics. He noted the emergence of concepts like 'China plus one,' reshoring, and near shoring, driven by factors such as tariffs and the quest for more inclusive trade practices. These developments, he emphasized, are reshaping supply chains and fostering more regional collaborations, opening up new opportunities and challenges for players in the logistics industry. Addressing the potential impact of President Trump's trade policies, Akoojee acknowledged the mixed implications for the logistics sector. While increased protectionism could drive up logistics costs and inflation, it also presents opportunities for innovation and the development of alternative supply chains. By embracing near-shoring strategies and exploring new trade routes, logistics companies like DP World can adapt to the evolving trade landscape and offer more cost-effective solutions to their clients. When discussing the AfCFTA, Akoojee underscored the transformative potential of the agreement in boosting intra-African trade. Despite the current trade within Africa accounting for a modest 18%, compared to 60% in Asia, he expressed optimism about the prospects for growth. However, he also highlighted the need for reforms in duty structures and customs processes to facilitate smoother trade flows within the continent. In the context of the theme of collaboration for an intelligent age, Akoojee emphasized the pivotal role of digitization in accelerating trade facilitation. He cited the example of digitizing customs clearance processes, which would not only enhance efficiency and reduce paperwork but also improve border security by minimizing corruption risks. By embracing digital technologies and fostering collaboration in the intelligent era, African countries can streamline trade processes and enhance the movement of goods across borders. As DP World continues to champion digitization initiatives and work closely with countries to modernize trade practices, Akoojee remains optimistic about the transformative potential of technology in driving economic growth and enhancing trade efficiency across the African continent. The road ahead may be challenging, but with a commitment to innovation and collaboration, the logistics industry is poised to navigate the shifting trade dynamics and unlock new opportunities for sustainable growth and development.