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.

 

Cons and Pros of Increasing Rates of Air Cargo to Africa

Higher demand of air cargo to Africa shows the optimistic direction to the region

Africa is a region facing various important economic conditions. Many areas are experiencing drafts and children are suffering from malnutrition. Then there is the issue of piracy, which goes from one area to another according to security conditions.

The increase in Air Cargo to Africa demand is certainly good news in a situation where growth cannot be thought of. Growth is not a temporary condition; it is growing steadily and it is still growing in the current year.

One reason for the increase is exemplified by

The main reason for the growth as suggested; Transport of silicon materials is an underlying cause. The silicone material is used in high-value consumer electronics and is an important element in construction.

This transport is done by air rather than by sea, hence the growing demand for air transport. There are obvious reasons for that. Though air cargo is comparatively a bit expensive rather to sea cargo to Africa but it is not only about money but time as well. Air cargo to Africa is swift with a bit more expense.

Impact of rising freight demand

The Director-General and CEO of IATA noted the many positive effects of growth and one of them is the optimistic impact that the growing export business has. The market has experienced after six years of uncertainty and is regaining the confidence of investors as well as traders.

Many companies Send Cargo to Africa from UK and play an important role in the development of the cargo business and the transfer of goods from Africa. The story does not end here; there is still much scope to cover this continent to make the situation more favourable for raising the living standards of the citizens.

There is only one region on the continent that has everything for its inhabitants and that is South Africa. It is responsible for a large share of trade on the continent and due to export power, its economy is strong and it is a partner of many major world countries.

What do you want?

The most important question is, how does the acquired capital reach the common man? Because if reforms are not done from the bottom up, people will not improve. To this end, the authorities must remove and eliminate items that disrupt the entire system.

First, there is corruption, then there is the communication error between the companies and these two things contribute a lot to disrupt the flow of money at all levels.

IATA Discovery

Demand for air cargo in Africa has a lead in the global market. According to data provided by the International Air Transport Association (IATA), Africa has the highest growth rate per year and growth is not specific to any demand, it is across all regions.

The recorded increase was not specific to any one region, but generally, all growth was seen. The volume of goods increased by 33.5 per cent and the capacity of the sector increased by 6 per cent as compared to the previous year.

Looking at the current year, growth has been 11 per cent since the beginning of this year and capacity has increased to 3.7 per cent during this period.

UK Dealing with Cargo to Africa Impressively

Permanent steps are essential under current conditions to ensure sustainability

Africa's population is not a thirsty place and they have plenty of opportunities to earn their livelihood hoods such as the Cargo to Africa business. Instead, it is a land where poverty rules and children and large areas die of malnutrition.

In such cases, people who are highly educated and who have many problems, do not want to live in the continent or their country and migrate to other areas where there is greater opportunity.

Sea Cargo

In this case, the welcoming country and in this case, Britain is facing problems and they are now beginning to look into the situation to correct the crisis that their citizens are experiencing.

The main reasons for migration are

No one wants to leave the place where he was born and live alone and face difficulties and good living. But not only Africa, but other poor countries also have a shortage of jobs and good workplaces put themselves in such a position. Freight Forwarding to Africa from UK. On the one hand, job seekers are growing, and on the other hand, opportunities are decreasing. In such circumstances, people move to another country or continent. The lack of industry's unemployment will drive people away from the land because it is their right to see their family life die.

Hint of Hope

Currently, the only hope for the public is the growth of international trade. But the problem here is that the exchange of goods is not as profitable as the money is spent again to trade the essential things needed to live a good life.

Cargo Trade

Thus, commerce is a favourable thing for small logistics businesses but the overall situation is similar at the national level and only when the situation improves does the standard of living of the citizens change.

Direction follows Britain

The UK government is not forcing migrants to move outside their borders, but it is certainly looking at tightening border conditions to allow migrants to move into the country. The country is already in a state of uncertainty due to Brexit and dealing with multiple cases at once like COVID-19 and it is difficult to manage this important matter.

At the same time, Britain is appealing to African authorities to get to the root cause and eliminate the cause of its population escape. New graduates must keep up with the industry to increase their job prospects to earn a livelihood whenever they complete their university. This lasting solution is the only way to reduce immigration, as there is no shortage of immigrants from every country.

Lack of infrastructure and general welfare           

These two things are the major constraints that can cause a country's poor economic conditions. These problems can be attributed to a lack of communication and therefore no one is willing to work for the welfare of the common man instead of struggling to fill his pocket.

Air Cargo

The African countries government intelligently decides to reduce pressure on themselves and the aided country.