Latest analysis backed by DP World and performed by Economist Affect signifies that regardless of a difficult 2023 and issues over geopolitical occasions affecting the financial system, Egyptian companies stay optimistic for 2024.
The fourth Commerce in Transition report underscores a surge in know-how adoption and agile commerce methods amongst companies. The examine displays insights from international commerce specialists and senior executives, together with these from Egypt.
Dealing with heightened inflation, rates of interest, and market downturns, Egyptian corporations are reevaluating dangers by means of friendshoring—aligning with suppliers from economically and politically comparable international locations, exploring new markets for export progress, and implementing dual-sourcing methods.
The survey reveals that 28% of Egyptian executives plan to leverage know-how to boost provide chain effectivity and agility within the context of world commerce’s future. Know-how additionally fuels enterprise optimism.
Almost half of the executives (48%) acknowledged their corporations’ use of AI in 2023 to rework provide chain operations, with a further 20% aiming to undertake it in 2024. They’re additionally exploring superior automation (33%) and blockchain (28%) to enhance traceability, safety, and knowledge safety.
For Egyptian companies, consolidation is a precedence, aiming to reduce provide disruptions. They face a balancing act between diversification and management, and danger administration. 34% are working towards friendshoring to form commerce and provide chain operations, whereas 31% are creating parallel provide chains for various markets. A couple of third are selecting fewer suppliers.
As Egypt’s financial system expands into new sectors and positions itself as a producing hub in Africa, 28% of executives view market enlargement as the important thing driver for export progress. Europe (37%) and North America (34%) are anticipated to considerably enhance export income in 2024. Technological developments (35%) are anticipated to extend output ranges and import values.
Whereas enterprise leaders preserve cautious optimism, they confront substantial export and import challenges as a result of transportation prices, enter shortages, rising inflation, financial volatility, tariff uncertainties, and political instability in essential markets.
Rizwan Soomar, CEO & Managing Director of DP World for North Africa & the Indian Subcontinent, commented: “Conscious of present financial and geopolitical hurdles, we echo the optimism of the surveyed Egyptian executives. They purpose to fortify their provide chains with know-how and discover new progress markets. These findings align with DP World’s initiatives in Egypt, the place know-how implementation addresses enterprise challenges and bolsters resilient provide chains. For example, on the Port of Ain Sokhna, our know-how has improved truck turnaround instances by 35% and vessel productiveness by 16%. We’ve additionally launched multi-channel fee options and buyer self-service purposes for real-time knowledge entry, enhancing cargo management and visibility. Along with our improvement of end-to-end logistics options in Egypt, underpinned by DP World’s CARGOES suite of know-how platforms, we purpose to construct resilient provide chain options that allow companies to navigate the challenges of commerce seamlessly and effectively.”
