Current Business Issues in African Countries
Supply Chain, Climate Change, COVID-19, Sustainable Development, Entrepreneurship
Mission
“The interdependence of the whole world must guide our roadmap.”
These penetrating words were spoken by Isabelle Durant, Deputy Secretary-General, UNCTAD, at the United Nations Conference on Trade and Development (UNCTAD15) on October 5, 2021. The CBIAC theme rests upon this belief that countries are interdependent and that aspects of the global economy operate synergistically.
The COVID-19 pandemic has given a renewed sense of urgency of the necessity of focusing on the synergies between Supply Chain, Climate Change, COVID-19, and Sustainable Development as they affect business on the African continent and how what occurs in one part of the world, affects the whole world.
The conference will gather business leaders, NGO leaders, researchers, students, and members of the community to present information on the current state of business in African countries. Issues discussed will revolve around the reciprocal impact of businesses, government, and society. The conference's goal is to create long-term collaborative relationships between business leaders, faculty, students, and community members.
The impetus of the conference is the discussions held at UNCTAD 14 (United Nations Conference on Trade and Development) in Nairobi, Kenya, in July 2016 and UNCTAD 15 held in Bridgetown, Barbados, and Geneva, Switzerland https://unctad.org/
Sustainable Develop-ment
Annually, trillions of dollars in raw materials leave developing countries and are sent to developed countries, making advancement in developing countries unsustainable. There are massive opportunities for FDI into Africa. While exports from developed countries have returned to pre-pandemic levels, exports from developing countries have reached only 6% of pre-pandemic levels. However, intra-Africa trade via The African Free Trade Market and increased multilateralism between Africa and the Caribbean has helped African countries improve. The multilateralism within Africa and between Africa and the Caribbean can increase sustainable development and can pressure large countries to have true global multilateralism.
Climate Change
Small, developing countries are not the cause of COVID19 or climate change, but they are the ones suffering the most. For many countries, climate change is an existential threat, especially if the 1.5C degree limit of the Paris Accord is not reached. Climate change, trade, and peace are linked: for example, in NE Nigeria, Lake Chad has decreased by 90% since 1960, and the loss of fish and industry is thought to have given fertile ground to Boko Haram.
https://unfccc.int/process-and-meetings/the-paris-agreement/the-paris-agreement
Entre-preneur-ship
An important issue for discussion is what are the best methods to encourage entrepreneurship in Africa? The power of large technology companies hinders the work of small businesses and hampers creativity. There is not a global framework for corporate tax for countries to obtain revenue based on the activity that occurs in their countries, which represents an unfair disadvantage against entrepreneurs. Trade is now not just at shipping ports but is conducted digitally, so trade is now in private hands more than ever. This private oligopoly must be addressed if development is to be sustainable and entrepreneurship is to flourish.
Supply Chain
The pandemic uncovered problems in the supply chain in virtually all industries (e.g., PPE, medical, chip shortages). Significant pressure was placed on supply chains, especially for companies that had single-source suppliers in other countries, such as the chip shortages in Asia negatively affecting automobile production in Europe. Some companies pivoted: (e.g., began making sanitizer and PPE; hotels became quarantine centers, etc.). Shipping costs are still skyrocketing raising serious inflationary concerns. This inflation negatively impacts food insecurity in SIDS (Small Island Developing States). Problems with production include new industrialization and increasing nationalism.
COVID19
COVID19 did not cause the inequalities within and between countries, rather it laid them bare and exacerbated them. The lack of sustainable development, trade inequalities, debt service, and lack of water are problematic for addressing the pandemic. Further, national debt service has taken money away from health programs and other programs. COVID19 debt for healthcare, vaccines, and PPE will hamper future development and will push countries back into poverty and make it more difficult for them to hit sustainable development goals. Many small countries lost 50% to 70% of their revenue due to the pandemic, exacerbating the difficulty of meeting healthcare and education needs. Wealthy countries ordered 5 times as many vaccine doses as they needed, leaving few vaccine doses available to poor countries which remain vaccinated at only 2% to 5% of their populations, leading to the variants which are now affecting the wealthy countries, and which continues to negatively affect businesses.
Background Material About the Conference Theme
UNCTAD15 Documents
* UNCTAD15 Program
https://unctad15.org/programme
* The Bridgetown Accord: Creative Economy and Digitalization Forum
https://unctad.org/system/files/official-document/td-inf-72_en.pdf
* The Bridgetown Covenant: From inequality and vulnerability to prosperity for all
https://unctad.org/system/files/official-document/td-l-435_en.pdf
* The Spirit of Speightstown: From inequality and vulnerability to prosperity for all
https://unctad.org/system/files/official-document/td-l-434_en.pdf