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   Vol. 16 No. 18
Tuesday February 21, 2017
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Africa Is A Multinational Opportunity
AfricaMultinationalOpportunity


      Right now, much of air cargo’s attention is focused on a trade show taking place in Johannesburg, South Africa.
      Air cargo, we’ve noticed, always seems to meet either in Nairobi or South Africa.
      There is no doubt that both these locations are world class and offer a valuable wealth of information and opportunities to network. In a few short years, attendees have learned more about the dark continent than many of us had known in 70-plus years of air cargo.
      But we wonder, what about the over thirty other countries that make up the rest of Africa?
      With that in mind, we turned to an executive who has unparalleled, first-hand experience in African affairs. Aside from being a savvy businessman, he is a dreamer and doer and even served as a farmer in Africa.
      Issa Baluch may know as much about logistics as anybody you will ever meet.
      He possesses the chops and know-how gained over a career that spans 37-plus years, and he has used these things to gather some of his thoughts and put them down in black in white for all the rest of us to study and ponder.
      Best known as the founder of Dubai-based Swift Freight, which was a medium sized multi-national that he eventually sold to Barloworld, one of Issa’s lasting contributions is that he is the guy that launched sea-air in Dubai.
      Issa is now at Harvard in the U.S.A., where he is undoubtedly continuing to think big thoughts about logistics.
      Here, Issa sets the tone.

Issa Baluch and African Forwarder partners

 

How To Read Change In Africa 2017

      In politics, just last month the ECOWAS region (made up of Western Africans) ejected the former dictator Yahya Jemma of Gambia when he refused to concede to Adam Barrow, who won the 2016 Presidential elections.
      This is a new “wind of change” in the thinking of African countries. Coup d’états are down by 90 percent as compared to the 80s and 90s, and now the message is ‘get used to the democratic processes - no room for dictators!’
      On the technological and business front, locally manufactured cars in various countries are gaining momentum and business is thriving. Automobile manufacturers such as Kantaka in Ghana, Innoson in Nigeria, Kiira in Uganda, Möbius in Kenya, and Willyscar in Tunisia are just some examples of local production developing roots in Africa.
      Rwanda launched the first national delivery service using drones in 2016. The drones deliver necessary medical materials such as blood to facilities with poor road access. Rwanda is the first country in the world to enact laws that govern the use of drones in commercial transportation with insurance and training facilitation.
      Africa is currently attracting garments manufacturing due to its abundance of land, water, and natural resources. For example, the world's largest zipper manufacturer—Japanese YKK—has relocated their manufacturing from China to Swaziland.

Opportunity At Every Turn

      All of the above impact air transportation in some form or another. With that trend continuing you will see more manufactured goods reaching the shores of North America.

Overlooked Markets

      As a continent, Africa is moving in the opposite direction of BREXIT. As a continent with a population of over a billion, there are 54 countries with roughly over 2,000 languages and over 200 boarder crossings. This makes intra-trade extremely difficult and is the reason why talk of AU passports and provisions about freedom of movement for goods, people, and currency is taking center stage in the African Union. Without too many hassles, intra-trade has been growing at a rate of 20 percent for the last 15 years. This is low compared to other regions, but has the potential to increase given the right backing.

Africa In Living Color

      Extremely expensive local borrowing curtails business growth. Only international businesses with financial stamina can grow their businesses. Expansion for local businesses is challenging despite existing opportunities.   
Issa Baluch/Geoffrey

Publisher-Geoffrey Arend • Managing Editor-Flossie Arend •
Film Editor-Ralph Arend • Special Assignments-Sabiha Arend, Emily Arend • Advertising Sales-Judy Miller

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