Schneider Electric President Caspar Herzberg on how the company is disrupted by trade wars, protectionism

The President of Schneider Electric in Middle East and Africa, Caspar Herzberg, recently sat down for an interview with CNBC Africa to discuss the challenges and opportunities facing the company in the current global economy. With trade wars, protectionism, and tariffs creating uncertainty in the business world, Herzberg highlighted the impact these factors have on Schneider Electric's operations. As a global company, Schneider Electric is no stranger to the challenges posed by increased barriers and tariffs. Herzberg explained that these disruptions affect the company's supply chain, leading to higher costs and ultimately passed on to customers. Despite these challenges, Herzberg emphasized the importance of trade agreements that promote certainty and predictability, such as those being pursued by many African countries. These agreements create an environment that encourages investment and growth, making companies like Schneider Electric eager to do more in the region. The interview also touched on the topic of Africa's efforts to unite and create a more integrated market worth trillions of dollars. Herzberg shared his optimism about the gradual process of African unity, citing the benefits for companies like Schneider Electric with a strong local presence across the continent. The President underscored the potential for creating local value and building ecosystems in smaller African countries, beyond the traditional big economies. Herzberg's expertise in smart city development was also showcased during the interview, as he shared insights on the importance of access to energy in addressing rural-urban migration. By developing business models around micro-grids and improving energy access in rural areas, Herzberg believes it is possible to slow down the migration to cities. In addition to energy access, Herzberg emphasized the need to make cities more livable through technology. He described a smart city as a place where residents can enjoy clean air, water, and reliable energy. By focusing on verticals such as water management, electricity supply, healthcare, and security, Herzberg believes that the technology required for successful smart cities already exists today. The interview concluded with Herzberg's call for governments and communities to embrace technological solutions that can improve efficiency and sustainability in urban environments, ultimately creating a better quality of life for residents.