INCORPORATING COLD CHAIN
ASSOCIATIONS that approximately 10 % ( or about 500 ) of international tariff codes are linked to cold chain operations , emphasising the critical role of this sector in trade .
According to Cameron ' s analysis , trade values related to perishables within Africa are substantial . He reported that imports and exports in this sector represent about 5 % of total trade , with a notable increase in volumes over the years . He presented a chart illustrating these trends , noting that while there had been a slight flattening in growth up to 2022 , recent data suggested a resurgence in trading volumes .
Cameron acknowledged the complexities of tracking trade flows , emphasising that data often lags and may not reflect real-time changes . However , he expressed optimism about the recovery of trade volumes , suggesting a dynamic landscape that may continue to evolve positively .
By promoting a more analytical approach and fostering open discussions , stakeholders can work towards reducing trade barriers and maximising opportunities across the continent .
EXPLORING INBOUND AND OUTBOUND TRADE FLOWS IN AFRICA
He highlighted that the continent experiences approximately 16 million tons of inbound trade and 22 million tons of outbound trade annually , totaling 38 million tons for perishables alone . While this volume may seem modest on a global scale , it represents a significant market for companies operating within the African context , particularly in countries like South Africa .
Cameron analysed the patterns of exports and imports , noting that European markets dominate African exports , followed by Asia , Africa itself , the Middle East , and North America . In contrast , when examining imports , Africa stands out as a major supplier to itself , although its position drops to third when considering value . This indicates that while Africa is actively trading within its borders , the commodities being exchanged are often lower in value , highlighting a potential area for growth in enhancing the value of traded goods .
Cameron remarked , " This observation aligns with the concerns commonly raised regarding the need for value addition and economic activity ." He pointed out that Africa currently lags in maximising the potential economic benefits of its trade , especially in the perishables sector . He noted that it can take 56 days to transport goods from Rwanda to Luanda , going by sea from Dar es Salaam .
Cameron further dissected the perishable goods market , noting that the previously mentioned 5 % contribution of perishables to trade statistics may under-represent the sector ' s significance . He says that this sector predominantly encompasses food and pharmaceuticals , with pharmaceuticals leading in value despite lower volume . This distinction showcases a complex interplay between weight and value in trade , underscoring the critical nature of the goods involved . He then introduced the concept of the ‘ exporter ' s dilemma ’. He referenced ongoing surveys conducted by the World Trade Organization , Organisation for Economic Cooperation and Development ( OECD ) and International Trade Centre , which consistently reveal that access to information about export opportunities
is a primary concern for exporters , both large and small . " This information gap can severely impact companies ' performance , especially when coupled with physical infrastructure and logistics challenges ."
Cameron stressed the importance of addressing this information disparity . “ By improving access to data and insights regarding export opportunities , this alone can empower exporters to make informed decisions , ultimately enhancing their performance in the market .”
By fostering a more informed and interconnected trading landscape , Africa can begin to unlock its full potential in the global market , particularly in the perishable goods sector . He encouraged participants as the conference progressed , to engage in discussions about practical strategies for overcoming these barriers and leveraging the existing trade flows for mutual benefit .
UNDERSTANDING TRADE DATA AND MARKET POTENTIAL
Cameron noted the importance of contextualising trade data . He noted that there are 51 African countries for which reliable trade data is available . However , certain nations - such as Western Sahara , South Sudan , Somalia and Eritrea - present challenges due to conflict and unstable governance , resulting in incomplete or unreliable statistics .
To build a clearer picture of trade activities , Cameron discussed an analysis of 467 tariff lines specifically related to the cold chain industry . He identified 42 markets where realistic trade outcomes could be anticipated , translating to 334 potential products valued at approximately USD710 billion . Yet , upon considering South Africa ’ s production capabilities , this potential dramatically reduced to 32 markets and 76 products , representing an untapped potential of about USD150 billion . He underscored that most of this opportunity lies in North and West Africa , areas that pose logistical challenges but hold significant promise .
Drawing on entrepreneurship research , Cameron explained that recognising and leveraging opportunities often depends on how prepared one is to act on new information . He referenced Thomas Edison , who famously remarked on the abundance of opportunities if only individuals were willing to seek them out . " Good fortune often happens to those that are prepared ," he stated , reinforcing the need for proactive engagement in the trade landscape .
Cameron connected this notion to a contemporary adage : " If opportunity doesn ’ t knock , build a door ." He stressed that in Africa , the relationship between infrastructure and business activity is cyclical ; without sufficient cold chain infrastructure , the sector cannot thrive , leading to significant food waste — often estimated at 40-50 %.
In wrapping up his session , Cameron reiterated that the dynamics that brought the industry to its current state may not suffice for future progress . He highlighted the rapidly changing geopolitical landscape and the unique challenges it poses to trade in Africa . He concluded with a thought-provoking insight , echoing a sentiment shared during his discussions : " High volatility , high variability , high uncertainty , high risk — these can lead to high returns and big opportunities . It all depends on your appetite for risk ." CLA
COLD LINK AFRICA • January / February 2025 www . coldlinkafrica . co . za 7