Davos 2023: DP World’s Akoojee on building supply chain resilience in the logistics sector

DP World's Group Chief Operating Officer for Global Logistics, Mohammed Akoojee, recently shared insights on building supply chain resilience in the logistics sector during an interview at Davos 2023 with CNBC Africa's Fifi Peters. Akoojee highlighted the challenges and opportunities within the industry amidst ongoing geopolitical shifts and global uncertainties. The key theme of the conversation revolved around enhancing supply chain visibility, efficiency, and resilience. Here are the key points discussed during the interview: 1. **Current State of Supply Chain**: Akoojee acknowledged the challenges that the supply chain industry faced over the past year due to disruptions caused by the pandemic and geopolitical tensions. However, he noted that with freight rates normalizing and capacities becoming more available, the situation was gradually improving. The focus now is on ensuring that supply chains are resilient enough to withstand future shocks and uncertainties. 2. **Cost and Trade Dynamics**: The conversation delved into the cost implications within the supply chain industry, with Akoojee mentioning that freight rates had returned to pre-COVID levels on major trade routes. He highlighted the trend of near-shoring and diversifying sourcing locations to reduce reliance on specific regions, which could add to overall supply chain costs. Despite the challenges, Akoojee emphasized that these hurdles also presented opportunities for growth and innovation in the sector. 3. **Opportunities in Intra-Africa Trade**: Akoojee shed light on the current state of trade within Africa and the potential for growth through initiatives like the African Continental Free Trade Agreement. While acknowledging the existing infrastructure and manufacturing limitations hindering intra-Africa trade, he expressed optimism about leveraging DP World's global network in collaboration with Imperial's distribution platform to enhance trade flows across regions. The integration of these logistics capabilities aims to provide end-to-end supply chain solutions that offer visibility, resilience, and cost efficiency. In summary, Akoojee reiterated DP World's commitment to enabling trade within Africa and across the globe, despite the challenges posed by a potential global economic slowdown. The company's acquisition of Imperial Logistics underpins its strategy to strengthen logistics infrastructure and support economic growth in the region. With a focus on building resilient supply chains and embracing new opportunities, DP World aims to play a pivotal role in shaping the future of the logistics industry on the continent and beyond.