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Leveraging the Potential of the African Continental Free Trade Area: Logistics Challenges and Development Paths for Future Value Chains in Africa

Author

Listed:
  • Benjamin Nitsche

    (Chair of Logistics, Institute of Technology and Management, Technische Universität Berlin, 10623 Berlin, Germany)

  • Henry Kofi Mensah

    (Department of Human Resource and Organisational Development, School of Business, Kwame Nkrumah University of Science and Technology, Kumasi 00233, Ghana)

  • Frank Straube

    (Chair of Logistics, Institute of Technology and Management, Technische Universität Berlin, 10623 Berlin, Germany)

  • Vianney Barigye

    (Department of Procurement, Logistics and Transport, College of Business and Economics, University of Rwanda, Kigali 4285, Rwanda)

Abstract

Background : With a rapidly growing young population, the African continent provides a high but barely exploited economic potential. Creating an African free trade zone is one of the African Union’s major initiatives to increase prosperity. Even though the AfCFTA has already come into force, its potential has not yet been fully exploited. This study investigates the logistics challenges associated with the AfCFTA and potential solutions and development paths for future value chains. Methods : The study builds upon a two-stage research process. First, applying the Nominal Group Technique with a group of 19 industry experts, current challenges and strategies to deal with them are conducted, and statements about potential development paths emerging from the AfCFTA are synthesized. Second, a questionnaire among additional industry experts is done to assess the results of the first stage. Results : The article sheds light on the barely untapped field of logistics challenges hindering the AfCFTA to leverage its potential. Strategy fields to address current challenges are explained, and the first indications of how the AfCFTA will shape supply chains in the mid-term are outlined. Conclusions : The article underlines the importance of logistics in the development of pan-African value chains and highlights potential development paths that may arise in the medium term. It also emphasizes the growing need for cooperation between politics, business, and research to overcome current logistics challenges and leverage the potential of the AfCFTA.

Suggested Citation

  • Benjamin Nitsche & Henry Kofi Mensah & Frank Straube & Vianney Barigye, 2024. "Leveraging the Potential of the African Continental Free Trade Area: Logistics Challenges and Development Paths for Future Value Chains in Africa," Logistics, MDPI, vol. 8(1), pages 1-16, February.
    • Handle: RePEc:gam:jlogis:v:8:y:2024:i:1:p:25-:d:1348411
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    References listed on IDEAS

    as
    1. Gabriel Mhonyera & Daniel Francois Meyer, 2023. "The Impact of AfCFTA on Welfare and Trade: Nigeria and South Africa in Light of Core Export Competences," Sustainability, MDPI, vol. 15(6), pages 1-16, March.
    2. Matteo Fiorini & Bernard Hoekman & Dennis Quinn, 2023. "Services trade policy and industry performance in African economies," The World Economy, Wiley Blackwell, vol. 46(2), pages 382-395, February.
    3. Maliszewska, Maryla & van der Mensbrugghe, Dominique & Pereira, Maria Filipa Seara & Osorio Rodarte, Israel & Ruta, Michele, 2020. "African Continental Free Trade Area: Economic and Distributional Effects," Conference papers 333178, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    4. Adebayo Adeleke, 2022. "The Indigenous Logistics System in Africa: The Case of Nigeria, Past to Present," Logistics, MDPI, vol. 6(4), pages 1-17, November.
    Full references (including those not matched with items on IDEAS)

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