Follow Us: View From The Maindeck
THE TRUE COST OF SUPPLY CHAIN DISRUPTION IN SUB-SAHARAN AFRICA
BY Anastasiya SIMSEK
IN Sub-Saharan Africa, disruption is no longer measured in days - it’s measured in months and millions. According to DP World’s global study, Without Logistics, 83 percent of firms in the region lose more than a month of operational time in years affected by major logistics disruption. For 26 percent, the financial hit exceeds one million dollars annually, while one in ten reports losses of more than five million dollars. This isn’t a temporary shock. Across sectors - from healthcare to
perishables - businesses are navigating repeated delays, prolonged recovery periods, and growing reputational fallout. As port congestion, border bottlenecks, and infrastructure breakdowns become routine, firms in Sub-Saharan Africa are absorbing the highest disruption burden globally - both in time and in cost. “Disruption is felt everywhere, but its weight is uneven. A small group
of stressed corridors in the Global South - Sub-Saharan Africa (SSA), Gulf Countries (GCC) and the Middle East and North Africa (MENA) - carry more of the strain,” mentioned in research.
The heaviest disruption burden Disruption is widespread, but the impact isn’t evenly distributed. While 36 percent of firms in the UK and 41 percent in Germany report losing more than a month of operational time in disrupted years, that figure rises to 50 percent in North America, 61 percent in the Gulf, 72 percent in the Middle East and North Africa, and 83 percent in Sub-Saharan Africa. The financial consequences follow the same regional divide. In the Gulf, 47 percent of firms report disruption costs of one million dollars or more
per year. In MENA, it’s 43 percent. North America sits at 38 percent; the UK, just 17 percent. Sub-Saharan Africa doesn’t top the global rankings in total cost, but the scale of financial exposure is rising fast, with over a quarter of firms now crossing the million-dollar threshold. And the damage doesn’t stop at lost revenue. According to the same
study, 83 percent of African firms say disruption has led to increased customer complaints. Another 88 percent report lost contracts or business, while 78 percent say their reputation with supply chain partners has suffered. Most damningly, 86 percent say their brand image has been damaged due to logistics performance during disruption. In most regions and sectors, between 80 percent and 95 percent
of respondents agree that logistics disruptions have led to increased customer complaints. Yet the longer-term damage to brand and trust is concentrated in a subset of markets. France and Sub-Saharan Africa both sit in the mid-80s for the share of firms who agree that their brand image has suffered because of logistics performance during disruptions. Confidence in logistics partners is noticeably lower than in other
regions. Just 64 percent of firms in SSA say they trust their logistics providers to support business needs—far below the 100 percent confidence levels reported in the Gulf and MENA. This global framing applies directly to Sub-Saharan Africa. High-volume
sectors like retail, perishables and healthcare, which globally report the most frequent disruption, are heavily represented in SSA’s air cargo mix. Globally, retail and healthcare experience around 18,000 disruption events per year, while perishables firms report the highest recurrence
of climate-related disruption, with 48 percent experiencing six or more such events over the last three years. In Sub-Saharan Africa, these sectoral vulnerabilities are compounded by infrastructure constraints. While disruption is recognised at all levels, the Without Logistics
report finds a notable divergence in how it is felt. Senior executives tend to focus on the financial and strategic stakes, reporting million-dollar exposures and extended recovery periods. Meanwhile, operational teams register the customer-facing consequences: firefighting, escalations, and commercial strain. In SSA, both levels have reason for concern. With 88 percent
of firms reporting lost business and nearly all facing reputational consequences,
disruption here undermines both short-term
performance and long-term competitiveness. Despite carrying the highest disruption burden, Sub-Saharan
Africa is not standing still. 97 percent of firms in the region expect their total logistics spend to rise in the next year. The same share plan to invest in AI, automation and digital logistics tools - the highest proportion globally. Across regions and sectors, 89 to 98 percent of respondents resilient supply chains will outperform peers in
agree that
the next three years. Over 80 percent expect logistics to gain strategic priority at board level. But Sub-Saharan Africa starts from a tougher position. The average business here is already losing a month of time, and in many cases, millions in cost and customer trust.
www.aircargoweek.com
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18
