Cargo To Africa

Category: News

  • Morocco plans to lead the African Trade

    An influential African Economy: Morocco

    Seaports are the cargo loading and discharging channels for a country and play a very crucial role in its business. How much cargo handling capacity, a seaport has and how many vessels come to a seaport is the efficiency determining factors of a seaport.

    Cargo to Morocco, an important African country, borders the Atlantic Ocean and the Mediterranean Sea is influenced by Berber Arabian and Western cultures.

    Trade constitutes more than 80% of the total Moroccan GDP. Morocco stands at number 61st on the world countries list with the GDP (nominal) per capita of US$ 3151.

    Trading Partners of Morocco

    Being an open economy, almost 98% of the Moroccan trade is carried out by sea cargo and its exports partners include Spain, France, Italy, United States, India Turkey, Germany, Brazil and Netherlands. On the other hand, Spain, France, China, United States, Germany, Italy, Turkey, Portugal, Russia and Saudi Arabia are its main import partners.

    Trade balance, including services, of Morocco for the year 2016 is about US$ -10937. To meet and eradicate this much trade deficit Morocco is continually working on trade development programs and have set a Ports Expansion Plan to generate more cargo to Morocco and cargo from Morocco capacity.

    Tanger-Med port: The Largest Transhipment Port of Africa

    Tanger-Med port terminals 1 and 2 can handle 8-millions of containers, 0.7 millions of trucks, 2 millions of automobiles and 10 million metric tons of oil products. This much cargo handling capacity with the transshipment facility make Tanger-Med the largest transshipment Sea ports of Africa.

    Morocco: A major Trading Nation

    The geographical location that nature has awarded Morocco is unmatchable and have potential to make it grow as a major trading nation. Through 15 commercial ports of the country, about 100 million tons per annum of merchandise cargo is transported.

    To lead the trade-world, Morocco has met its deep port issues and still working on deep ports expansions. Almost 38% of the Moroccan trade is carried out at the port of Casablanca, only.

    Stratégie Nationale Portuaire 2030: National Port Strategy

    The Moroccan government is well aware of the timely need of new ports. The framework of Stratégie Nationale Portuaire 2030 is based on objectives to enhance cargo handling capacity so that Morocco would serve as cargo to Africa gateway in coming years.

    Cargo handling capacity would be increased by meeting international standards and having world-class ports. This framework plans to establish 6 new ports with the modern infrastructure and IT equipment. Tensift, Souss, Doukkala, Casablanca, Abda and Kenitra are the intending planned ports.

    Game Changers in the Region: Safi and Nador-Med Ports

    Safi and Nador-West Med ports are currently under construction. The Safi port has its first phase completed in 2017 and is mainly serving coal imports for a local coal-run power plant. The coal power plant utilizes 3.5 million tons of coal per year and this much of tonnage would be imported through Safi port and in addition the by-product of power generation, phosphorus would be exported.

    The Nador-West Med port would be a deep-water port and is expected to start operations in 2019. Funds for the initial phase of the project are to be acquired from private investments while the country has already acquired 10% of the total amount from The African Development Bank, amounting to US$ 113 million.

    Supportive Laws to Protect Private-Public Interest

    Financing of new ports and up-gradation of old ports is expected to come from private-public cooperation. The country is improving its law to facilitate the transfer of maritime services to the private sector.

    Tanger-Med port is established under law 15-02 passed by the government as a Private-Public partnership. Under the same law, Marsa Maroc, the operator of ports in Morocco has sold 40% of its shares to private companies. It helped in both, generating funds and maintaining a healthy competition.

    Infrastructural expansion of Moroccan seaports would not only increase the country’s trade but would also ensure overall cargo to Africa from the UK or other nations as a communal benefit to Africa.

  • Djibouti Launched Africa’s largest Free Trade Zone

    The first episode of a free-trade zone of Africa looks pretty astonishing on paper

    China is clearing its way to secure its position as a global trade leader and launching the first phase of Africa’s prodigious free-trade zone is another milestone in this regard.

    On July 5, Djibouti unbolted the first episode of the Djibouti International Free Trade Zone (DIFTZ), a $3.5 billion project that stretches an area of 4,800 hectares.

    Enhancement of financial support

    Having whereabouts at the intersection of the Red Sea and the Gulf of Aden in the Horn of Africa, Djibouti has given long notices of its geostrategic location as a critical entry point into African markets.

    As a petty, barren country, with a population less than one million, it has attracted military installations from various nations including both China and the US. The $370 million, 240-hectare pilot zone comprises four industrial swarms which will subject to trade and logistics, export processing, business and financial support services, as well as concocting and duty-free merchandise retail.

    The opening of the zone is being in tune with Djibouti’s hosting of the Africa-China Economic Forum, which showed the way to government officials and the private sector to have the designs of promoting economic collaboration.

    The free-trade zone as a zone of hope

    Djibouti wishes the international trade zone will not only perk its position up as a trade and logistics hub but will also put its youth in operation. On top of that, it’s hoping it will provide a strategic base for global businesses hankering to access the rapidly growing African market.

    Along with Djibouti, the DIFTZ will be managed with three other Chinese companies, namely: China Merchants Group, Dalian Port Authority, and IZP. President Ismail Omar Guelleh lauded the efforts of the Chinese to invest in Africa, calling the trade area “a zone of hope” in an event attended by leaders cargo from UK to Rwanda , Sudan, Somalia, Ethiopia, and the African Union.

    The DIFTZ zone is also a fundamental part of the “Belt and Road” initiative, the multi-trillion Chinese project that aims to sink money into the infrastructure projects including railways and power grids in central, west, and southern Asia, as well Africa and Europe.

    As part of this mega project, China finished credit for and built a $4 billion, 756 kilometres (470 miles) railway between Djibouti and landlocked Addis Ababa, the continent’s first transnational electric railway.

    This year, after calling its contract off with the Dubai-based DP World, Djibouti also signed an agreement to boost up the number of cargo containers handled at the port with the Singapore-rooted Pacific International Lines that toil with China Merchants Port stocks, which thus far has a stake in the Djibouti port.

    But China’s continuous involvement in Djibouti has raised concerns with American officials worried Beijing could strong-arm them from the location of their strategic base Camp Lemonier.

    And much like Sri Lanka had to hand over a strategic port after struggling to pay its debts to Chinese firms, Djibouti is also among several nations who might be lured into China’s “debt trap,” threatening the nation’s long-term sovereignty.

  • East African Exports to European Union grew by U.S. $200 Million

    It is an encouraging news for the East African trade enthusiasts

    There is no denying to the fact that economy depends on trade a lot and healthy trade and cargo activities in any region are bound to boost the economy of that region. The poverty-ridden East African region received a good news in this regard.

    According to ITC, the East African region exported goods worth more than $2.5 billion in 2017, which stood last year at $2.3 billion. Even though it is still not a very big amount but things are significantly improving and the stagnancy in the region’s economy no longer seems to exist.

    East African Countries need to set their priorities

    East Africa is a big region and a home to 21 countries. Some of the notable countries of this region are Zimbabwe, Kenya, Ethiopia, Somalia, and Madagascar and Uganda. These countries contribute a lot to the overall economy of Africa.

    Amid the efforts to harmonise standards in the region, this rise in exports is no less than an achievement. Nevertheless, according to International Trade Centre, the numbers could have been even better, had the East African countries sorted out the issue of harmonising standards quickly.

    Brexit; a Midas touch for Africa

    After the pole for Brexit, European Union is finding ways to boost trade and logistics in order to curtail the effects of the absence of Britain. Therefore, it is a golden chance for Africa to capitalize on this opportunity and get into more trade agreements and MOUs with EU and UK.

    The director Productive Sectors of the East African Community (EAC), Mr Jean Baptiste said: “To tap into the EU market, the region needs to benchmark standards with those in the European Union and East African products should meet the requirements of the European consumers.”

    Cargo for the trade is like milk for the tea

    Cargo or freight movement contribute a great deal to the trade activities. Cargo to Africa from Europe has seen major improvements in recent years. However, it can be made go further by improving air and sea cargo facilities.

    The Airlines functioning in East Africa have not produced an up to the mark performance due to some ground realities which are needed to be eradicated. Private airline service rather than national flag carriers can help a lot in connecting east Africa to the rest of the world.

    The permanent connectivity offered by the aviation is imperative for the economy to flourish. Aviation creates jobs and improves trades and upgrade the living standards of the general population. The revenue generated by the airlines also adds to the growth of an economy.

    In the similar fashion, seaports play a very important role in the sea cargo of a country. African seaports are a mess and they handle cargo is not a very professional way.

    However, there are some exceptions too such as the Port of Mombasa, which registered a new record in container operations by discharging 3872 TEUS in a matter of only eight hours. Other African port authorities should learn from this and implement similar planning at their ports.

  • International Problem of Fuel Prices Affects Cargo to Africa Industry Too

    Impacts of costly fuel

    It is a well-known fact that fossil fuel is at the center of every economic activity. The prices of fuel determine the prices of all the commodities since the movement of every commodity depends on oil.

    In fact, fuel prices affect each and every individual’s life in some ways to some extent.

    The Cargo Industry

    A cargo industry is the first and foremost that is affected by the fuel price fluctuations. The higher fuel prices mean higher shipment charges. The rise in fuel prices affects the cargo to Africa services as well including trucks, railways ships and airways all and customers try to avoid shipments.

    Similarly, low fuel prices bring the cargo charges down and thus boost the growth of the industry owing to the maximum use of its services. The increase in the fuel prices affects the cargo industry in many ways.

    Chain Reaction by Fuel Price

    The rise in fuel prices actually brings about a chain reaction. When the fuel prices surge, the cargo charges also increase. This increase in the cargo charges means the shipper is going to be charged more to make up for this.

    In the similar fashion, when the shipper will be charged more it will make the receiver pay more amount. Therefore, this cycle will end up causing inflation. We can see how a minor change in fuel price affects each and every individual.

    Setback to the Cargo to Africa industry

    When the fuel price rises, the cargo prices also rise which makes people hesitate to use cargo to Africa services. This hesitation leads to a lesser use of cargo services which reduces the revenue of the cargo industry and thus the industry suffers a setback.

    A firm fuel price ensures a steady revenue generated by the cargo industry.

    Competition

    This effect is actually a positive effect. When the fuel price rises, the cargo companies try to mitigate the effect by providing services at a discounted rate so that the cargo to Africa companies are not disrupted.

    This thing promotes competition among the cargo companies and in turn, the service rates are decreased. However, these effects remain active for a short and limited amount of time.

     Effects on Economy

    We know that economy of all the countries is largely dependent at fuel. More fuel prices bring less cargo activity which affects the economy in the longer run.

    Even though the effect is not immediate, yet it plays a significant part in the destabilization of the economy. It largely influences the imports and exports of the countries.

    Uncertain Future

    Since the logistics company run entirely at the expense of fuel, they are at higher stakes regarding oil prices. If the fuel prices keep on rising and rising, many companies would go down and many would be forced to take loans.

    So higher prices of fuel increase the risk for the cargo companies manifolds. Similarly, on the lower level, less shipping activity will be noted.

  • UK giving a Helping Hand to Nigeria

    In a recent meeting UK giving full support to fight corruption and insurgency

    Who can deny the role of UK in the African region? Especially in the fields of development and fighting food and economic problems, UK has been a major support to make the situation better in the land as well as in the offices. This means that the UK is also making efforts with the collaboration of African authorities to minimize the effects of corruption that stops the developmental process.

    Many think that only South Africa plays a key role in UK Africa Cargo trade, in fact, Nigeria is equally important. The downfall of this country is due to corruption that interrupts in its growth.

    Nigeria is seen as a fruitful trading partner and the recent visit of Boris Johnson, the foreign sectary for Britain and with him, Ms. Priti Patel stressed on the full support of UK for Nigeria to fight its internal problems so that it can start targeting the uphill climb towards success.

    Summary of the objective of Meeting

    The two officials were visiting Nigeria so as to make the bond more firm and assure Britain’s support for Nigeria in its humanitarian, developmental and military areas. Both the personals stressed on making the country more liable for trade and a better place to live for people.

    It is estimated that almost every young citizen of the country has to face poverty and no job opportunities are present. For going abroad is not affordable for everyone and due to this many of them are stuck there. But leaving the place is not an answer, instead, help should be given to such a land so that it can provide every necessity the people need in its territory.

    And the UK is providing help in every sector so as to raise the living standards of the people.

    Nigeria’s response

    The response of Vice President and the ministers was very positive towards what the UK is doing for them. The minister of Foreign Affairs said that they appreciate what is being done for them. And they look forward to increasing the relationship in Sea Cargo to Africa economic grounds.

    It is very obvious now that if the economy of a country could rise, other areas will get better with the combined effort. The UK is also keen to facilitate the security challenges and terrorist threat which Africa is facing right now. Also, the team for the meeting from Nigeria responded very positively to know that there are investors and businessmen who want to do business in Nigeria.

    Another step Towards Strong Ties

    UK government has a very firm vision for the strong relations with African countries especially when they are approaching Brexit. This meeting could be seen as the chain of meetings going on for elimination any doubt between the two regions for trade flow.

    Also, Africa is facing many uncertainties and some very urgent decisions are to be made for the agreements of trade between Britain and Africa. The problems are not only with Africa but there are some very serious problems and decisions UK government has to handle so that their personality and at the same time global ties do not get affected by a hard or an easy Brexit.

  • UK Taking African Trade to the Next Level

    Continuous help is changing buy and sell scenario in the region

    For a long time these two countries have been doing trade in an effective and fruitful way. Doing business in Africa is not a kid’s game, the businessman or trader has to put his best efforts in setting up something new. The reason is not that people are not ready to participate in changing the situation, but it is the complex systems at every trade entry.

    The documentation is complex which results in the delay of the procedures. But efforts are being made to make the procedure efficient. In this regard, UK is lending a helping hand for setting up an advanced structure to speed up things according to the international standards. In East Africa trade access has become easy since 2010 with the onset of One Stop Border Points.

    Till now Trade Mark East Africa has funded 15 OSBP for their construction and operating. This became possible through the funding of UK’s Department for International Development and Global Affairs Canada.

    What is an OSBP

    This procedure brings the two neighboring sides under one roof for conducting the procedures regarding cargo exchange between the two. It has been reported that due to the OSBP the procedural time between Kenya and Uganda has reduced to one hour which earlier took up to three days.

    Customs, immigration, and vehicular clearance are all carried out on the same spot making the border crossing nightmare a sleek and efficient step for trade. As being a real trade booster in the Northern and Eastern side of Africa, setting up of such a facility is spreading and funds are being arranged for introducing it to new destinations.

    Sections Present on the spot

    Cargo to Africa is not only taken as a major trade partner to Africa, also its efforts to raise the living standards of people are remarkable. This British funding has made possible to give way for the structural and also deep inside development. Things like build office buildings, roads, and parking yards, cargo verification bays, scanner shed, passenger sheds, targeting booths, warehouse and canopies, ICT networks and hardware, furniture and institutional support has all become possible to maximize the chances of a smooth working environment and proper labor under one roof.

    This new progress is being welcomed by the employees very positively as it is taking off their burden. Also there is very less loss of cargo on the routes that are governed by the OSBP as you do not have to take your cargo from here to there.

     

    Advantages of this system

    The largest plus point of the technology is the reduction of time. Then there is an increased trade and a positive image of especially Uganda which was at the introduction of this process struggling hard to ease of its border and the prices for trade.

    Trade has improved since then and the government is more than appreciative for the support which UK has provided in such a hard time for this country. Other counties that received funding for this new program include Busia, Malaba, Kabanga/Kobero, Holli/Taveta and Mirama Hill/Kagitumba since 2010.

    To read more on technology, regular reading of Shout Me Crunch is recommended.

  • Blooming African Cargo Trade

    Signs indicating that Africa is on the rise

    Africa today is not what it used to be. There is progress, trade has increased and still rising, the world is looking towards this continent for opportunities for business growth and developed countries are investing generously in developmental projects.

    It was the foreign investment which proved to be an initiating step for progress in this developing country. In the present time, Government is playing an important role in rectifying the economic situation. Political stability has also improved shipping to Africa which plays a key role in any country’s evolution.

    Moreover, the growing population is inclined towards urbanization which is a good sign showing the flexibility of people for progress. There are advancements in various sectors around the continent which is giving off solid proofs of a better Africa in the future.

    Processing of Raw Agricultural Produce

    At present, mostly raw items are traded by Africa in the international market. But to reach higher markets value-added services are also being introduced. Instead of trading unprocessed commodities which are less preferred, making them acceptable and then presenting for trade is a much better way.

    The need is being promoted in Cargo to African countries for many years and it is successful in most of the cases. Still, there are more opportunities for investment in this sector. What happens due to the process is that only fresh and high-quality goods reach the market and the value increases.

    Otherwise, the purchaser gives less money for low-quality which reverse the situation and the owner have to face loss. In turn, no improvement takes place at the root. For a positive route towards prosperity, it is necessary that change takes place at the base of a system.

    Local Manufacturing

    For a much better scope of trade globally, it is needed that local market advances at a steady pace. Currently, most of the products which are in demand by the growing population are traded.

    Over the past few years, businessmen in the region have started manufacturing with available products which can prove to be a starter in this direction. Trading inland creation will generate more revenue as the manufacturing cost will be paid back and profit graph rises as a result.

    This initiative is seen by an optimist as a rush of gold and the sector is sure to gain popularity by the profit level it is going to give back.

    Export Market Being Improved

    For a long time it was impossible for African market to meet the international standards but now efforts are being made in this respect to improve the exports.

    The best advantage for this land is its richness in food growth and with such a large rise in the world’s inhabitants the danger of food shortage is building up. African countries can positively play their role in providing eatables to the world when such a situation triggers. For this side to stay positive the standards should keep on getting higher to deliver internationally what is needed by most.

  • Kenya is Expanding Trade Abilities

    Kenya & UK improving trade relations

    African countries apart from South Africa, are also trying to make themselves capable of trading globally on independent bases. The emerging countries are now well aware of the fact that for their development trading on exchange bases or independent bases is necessary for the growth of an economy.

    Kenya is already an important Cargo trade partner to many countries and in specific to the UK. The basic work that is being carried out in Kenya is for the expansion and facilitation with respect to trade.

    One project is a 10-year lease of the international warehouse and the second one is the construction of Lamu Port. Both these projects will further facilitate the trade and in turn, the conditions in the country on whole will improve largely.

     Lamu Port

    This port is being constructed to harmonize the port of Mombassa. The main cause of this construction is to enhance trade with other East African countries. The port will also open up the route for landlocked countries like shipping to Ethiopia and South Sudan. The work on its first berth is in progress.

    The authorities say that 20% of the work has been done by now and the first berth is planned to complete by June 2018. Other two berths are to be completed by 2019 and 2020 respectively.

    Not only work on the berth is being completed, side by side a cofferdam and a causeway are also underway. Then a search for a proper channel and land recovery are also taking place.

    Kenya’s warehousing 10 years Lease

    African Logistics Properties (ALP) has signed with Kenya its first ever, largest warehouse which will be used as an international hub for receiving cargo. The warehouse is located in Nairobi and the work on it is being done with fast pace.

    There is no proper place for logistics and distribution in Kenya for now and with the inset of this warehouse, it will be a great achievement. The ALP is well experienced in its work and has handled many major projects till now.

    The company is well equipped and is making the warehouse installed with all modern facilities so as to satisfy all the international standards and make traders believe that their cargo will reach destination safe and sound and on time.

    It will be like a central place for the international as well as regional trade partners. The hassle to fetch the cargo will end with a warehouse which will have a great capacity to accumulate any volume of goods.

    A Step Ahead

    Both these projects are not only important internationally but also they will facilitate the national trade which is very important to stabilize the region. The malnutrition and reliance on food which is being suffered by the people of Africa have to end and they have to produce job opportunities and better living conditions for the citizens.

    Such projects give a hope to the people that they are going towards progress and their future population will have a better place to live. UK and Africa capable countries are playing their role well in helping the governments to improve their lands.

  • Things to Consider for Business in South Africa

    Prepare yourself before hand for choosing Africa as a Business destination

    South Africa is considered as a very fruitful business destination. Especially when we are talking about UK trade with the region, South Africa becomes prominent. As it is the major trading partner with UK in Africa. This does not mean that UK is not in trade with other areas as there are new markets emerging in sub-Saharan region and Kenya, Nigeria already in trade relation with UK.

    But as South Africa gets the largest share of trade, it has become prominent in Cargo to Africa. This region is very rich in agriculture and also the environment for doing business is favorable which attracts the investors.

    How the Task is done?

    Visiting a new country, unknown people, economic system and infrastructure, all become a big hurdle. To overcome all these difficulties, UK government appoints parliamentarians from among the political parties to lead business delegations to other countries where Britain wants to boost trade and business for bilateral relations. With this facility, present making place in the new environment becomes easy. Same is done in case of Africa but keeping in mind the trade area and its need.

    As people are now aware of their purchasing power and decision making has become strong for trusting or liking a product. So, hitting the right market is very important to be successful to improve air and sea cargo growth.

    Current Exports of UK to South Africa:

    At present, the major exports of UK to South Africa are fuel, machinery, vehicle, medical, pharmaceuticals, and food. There is plenty of scope for UK businesses in areas like energy, transport, health care and education sectors. Africa is not a fully developed region, and hence requires help from outside its premises for keeping things going and at the same time, help is needed to make the situation better in every sector. Trade is the best way to do this as you get something of your interest in return.

    For example, it is being said that after Brexit, there are chances of increased imports of fruits and vegetables from Africa which is the demand of UK at present as their own production has fallen to a large extent, and thus they are relying on imports for fulfilling the need of their people.

    What the newcomer has to face:

    As any other region, there are obstacles that can stop or slow down your efforts of establishing a business in the land. There is a high rate of unemployment in the country and people are not assured of getting a job and maintaining it for longer. Then the poverty factor also becomes a challenge for the businessman as the power of purchase may not be as it was expected. Another very important factor is the skill and capacity shortage, which is there due to less opportunity.

    Lack of infrastructure is also a big problem that makes it difficult to adjust in this region. There are no solid and proper working departments for resolving energy, water and transport areas. High crime rate becomes another problem the businessmen have to face while doing business and keeping a close check on such activities is necessary. Then there is legislation, the Broad-Based Black Economic Empowerment; which the investor has to tackle while setting a company.

  • How Britain is tackling African Migrants and exports to the region?

    Permanent steps are indispensable in the present condition to ensure stability

    Africa is not a place where the population is well fed and has plenty of opportunities to earn their lively hood like Cargo to Africa is a big opportunity to grow the business. Instead, it is a land where poverty rules and children and older sector dies of lack of nutrition. In such a case, people who educate with lots of hard work and facing a bundle of problems do not want to remain in the continent or in their respective country and migrate to other areas which have more opportunities.

    In this situation, the welcoming country and in this case Britain is facing problems and they are now starting to think over the situation to improve this crisis which is making their own citizens suffer.

    Main Reasons for Migration:

    No one wants to leave the place where he/she is born and live alone while facing trouble and devoid of a decent living place. But not only Africa, other poor countries lacking jobs and decent workstations put their occupiers in such a situation. On one side the job seeking personals are growing and on the other hand, prospects are becoming less and less. In such circumstances, people either go to another country in the continent or travel towards another continent. Lack of industry joblessness is making the people flee from the land because no one can see their family die due to lack of necessities of life which is their right.

    Ray of Hope:

    At present, the only hope for the people is the increasing trade international market. But the problem over here is that exchange of goods is not profitable till now as the money earn is again spent to trade for the essential items that are needed for leading a decent life.

    So the trade is a positive thing for small Logistic businesses but the overall situation remains the same on the national level and when this condition will improve only then change in the living standard of the citizens occur.

    Lack of Infrastructure and Common Welfare:

    These two things are the main hurdles which are responsible for poor economic conditions of a country. These problems result in lack of communication and hence no one wants to work for the welfare of a common man, instead, everyone struggles for filling their own pockets. An Intelligent decision by the government of African countries would be to look for flaws within and rectify them to decrease pressure on themselves and on the helping country.

    Direction Britain is following

    The UK government is not forcing the immigrants out of its boundaries but it certainly is considering to tight the border conditions for permitting migrants in the country. The country is already in a state of uncertainty due to Brexit due in 2019 and is simultaneously dealing with many affairs and this crucial matter is making things difficult to be handled. Also, UK is urging the African authorities to reach the root cause and eliminate the reason for fleeing of its population.

    Industries should be put up to increase job opportunities so that the fresh graduates have a livelihood whenever they finish their university. This permanent solution is the only way which can reduce immigration as handling such a big number of immigrants from every country is not affordable.