Thursday 26 November 2020

More Inclination of West Towards Africa is Boosting Cargo to Africa

 Cargo to Africa will get a boost by trade shift towards Africa 

Cargo sector on a global level is contributing a lot in abridging people living in various locations of the world. Truly speaking, it is boon and blessing for the migrants of a country residing in some other host country and sends their personal belongings and precious gifts to their dear ones to their homeland. 


History reveals that initially west and other developed countries had no interest in making an investment in African countries. But now the scenario is changing rapidly. Merely from the UK, daily various cargo flights carry Cargo to Africa from UK.

A trade shift towards Africa by Europe, the US and China

A continent where earlier only military planes transported military freights, is now seeing replacement with the sophisticated Boeing 777 hovering over Africa. Europe is interested in floriculture and fresh produce of Africa while China is keeping its eye on African natural resources. 

All this inclination towards Africa by the West, China and the US is due to natural resources of Africa and eventually this objective would be attained through sea cargo shipping to Africa or air cargo to Africa.

It deserves to mention here that the experts are observing this shift keenly. They are hopeful that there is going to emerge new trade corridors abridging the markets of Africa, Latin America, Middle East and Asia that are prospering rapidly. 

It is quite certain that this new trade shift will attract, infrastructure developments, the inflow of increased foreign investment and emergent middle class will make the cargo traffic growth more substantial. It is estimated that this growth is expected to be 5.8% by 2030. And it is quite obvious that 60% more flights will be added, making it doubled.

Undoubtedly air cargo is facilitating trade globally and creating millions of jobs also. This is also a fact that world trade depends on the power to give supreme quality commodities at the competitive prices to the users globally. Statistically speaking, every year 7.4 billion parcels are delivered across the globe through airmail.

A win-win situation for both the UK and Africa

No would deny that diminishing trade relationships between the UK and Africa before Brexit and COVID-19 can be revived. On the other side, the UK export potential can be increased from the existing low figure. Eventually now after post-Brexit global aftereffects, will create shifting inertia that makes the UK form its trade relationships with other countries by its own, without any restriction from the EU. And African countries in this regard come on the high side in priority of the UK for making trade relationships. 

It goes without saying that both the UK and Africa can have a win-win relationship due to ABC Triangle of AFCFTA, Brexit and COVID-19. That is why policy makers are on research to evaluate the exact outcome of these events for boosting the trade inclusive of cargo trade that is the back-bone of trade through air or sea.

Usage of unmanned drone technology in cargo by Africa

The biggest plus in cargo to Africa is that new technologies are being adopted rapidly by the African countries which once were regarded as backward areas. For instance, Kenya based cargo company has made an agreement with Japanese drone manufacturer Yamaha Motor Company to have the latest air cargo delivery solutions in Kenya. 

Really, this is a big breakthrough that now cargo deliveries will be carried out by unmanned drone flights when you will observe that some drone is hovering over your house to deliver you your consignment. The sole objective for the usage of this drone technology is to provide urgently needed medicines or medical equipment in some disaster, instantly. This will no doubt, bring a drone revolution in Africa by having new innovation and technology.

Havoc caused and further threats to cargo to Africa

Unluckily, deadly pandemic COVID-19 is fixing its bloody paws on each and every sphere of life. After the bitter experience of the first wave, things were reformed and reshaped by having strict compliance of preventive measures. This was actually responded in the context of lessons learnt as this was a new pandemic of its kind.

But now its second wave is fiercer than first one, which will have perhaps political effects also, after its spread globally. However, things are going well by adopting the concerned social distances and wearing masks by the cargo companies and field offices.

Will ABC Triangle slow down the pace of Cargo to Africa?

As earlier said there is a great flow of trade shift towards Africa from the west, US and China. But the emergence of viral pandemic COVID-19 is also busy in its disasters. And trade relationship of Africa with the UK is reshaping in the midst of this bitter havoc. Chronologically evaluating the events, we come to know that first in May 2019, the African Continental Free Trade Agreement (AFCFTA) came into force. 

Then under the Brexit agreement, the UK withdrew itself from the European Union. And after that the corona shook the whole world and how could Africa remain aloof from it. The experts gave it the name of ABC Triangle of events that occurred in a sequence.

Wednesday 11 November 2020

Impact of AFCFTA, UK's withdrawal from the EU and COVID-19 on cargo to Africa

 

How triangle ABC is reshaping the cargo to Africa and its prospects

A big plethora of Africans is settled in the United Kingdom for a long in search of a better future and more earning opportunities. Unfolding history pages, it is revealed that Africans arrived in the UK in the sixteenth century and settled in London. 


Further expansion of African migrants occurred in seventeen and eighteen centuries when black African slaves were attending ex-colonial officials and others. So far as trade between London and Africa is concerned, it started during the period of Henry VII and Henry VIII.

The scenario of cargo to Africa

As said in the preceding lines that the migrants settled in the UK are continuously sending gifts and precious things to their relatives and friends. Though they are settled here for a long yet they are keeping their relations with their homeland still alive. 

Various companies are associated with the business of sending Cargo to Africa. These companies are a boon and blessing for the Africans living in various parts of the UK. Mainly, these cargo deliveries are sent through sea cargo, air cargo assisted by intermodal means. 

You are never asked to visit some cargo office by these companies but you can just have contact with this cargo to Africa companies through portals or telephonically. Their representative will collect your consignment from your doorstep and it will be delivered to even distant parts of the African continent. 

ABC triangle is reshaping the cargo trade

It is pertinent to mention before going ahead on the subject matter that perhaps it is just an incidence that the trade between Africa and the UK is stirred badly due to the occurrence of three happenings. What were these happenings that reshaped the trade relationships specifically cargo trade between the two? 


These were entry into force of the African Continental Free Trade Agreement i.e. AFCFTA, the withdrawal of the United Kingdom from the European Union under the Brexit agreement, and lastly pandemic occurrence of COVID-19. 
Parcel Shipping to Africa from UK.All these three events took place one after another in one year, which is why it was termed as ABC triangle. Now both countries can reset their trade anew.

Potential of cargo between the UK and Africa

Cargo trade between Africa and the UK passed through various phases both good and bad. In 2012 this trade was up to $51 billion and it decreased to $27 billion almost half in the year 2019. This was almost 2.4% of the total trade of the UK. On the other hand, untapped export is potentially more than $8 billion.

This can be boosted by taking certain initiatives by the two governments. There is great potential for the trade of five products i.e. vehicles, electrical equipment, pharmaceutical products, machines, and mineral fuels. Certainly, by taking these measures, the UK can improve trade gaps.

Likewise, more relaxations to the persons associated with cargo and freight be given for having better economic outcomes. There is no denying that there is substantial demand for cargo flow from the UK to various African countries like South Africa, Kenia, and Rwanda. 

Cargo service through unmanned aerial vehicles in Africa

The future of cargo to Africa is very bright because this service of cargo is now going to touch the height of speedy service in the form of unmanned aerial vehicles i.e. drone technology. Surely this will be the future of the cargo to Africa and even this service has been started in Kenya and Rwanda

It is worth to point out that Rwanda is using this drone technology for sending lifesaving inputs, blood, and medical supplies where these are instantly needed. This is a big breakthrough in cargo deliveries.