A recent study supported by DP World and conducted by Economist Impact found that 2023 will be a difficult year, and despite concerns over geopolitical events affecting the economy, Egyptian businesses will continue to grow in 2024. This shows continued optimism.
The 4th Migration Trade Report highlights the proliferation of technology adoption and agile trade strategies between businesses. The study reflects insights from global trade experts and senior executives, including from Egypt.
Faced with rising inflation, interest rates, and weak markets, Egyptian companies are turning to dual sourcing strategies by partnering with suppliers from economically and politically similar countries, opening new markets for export expansion, and developing dual sourcing strategies. We are reevaluating risks through the introduction of friend shoring.
The survey revealed that 28% of Egyptian executives plan to leverage technology to improve supply chain efficiency and agility as they look to the future of global trade. Technology also fosters business optimism.
Almost half (48%) of executives know their company will use AI to transform supply chain operations in 2023, and a further 20% aim to implement it in 2024. They are also considering advanced automation (33%) and blockchain (28%). %) Improve traceability, security and data protection.
Consolidation, aimed at minimizing supply disruptions, is a top priority for Egyptian companies. They face the challenge of balancing diversification, control and risk management. 34% practice friend-shoring to shape trade and supply chain operations, and 31% build parallel supply chains for different markets. About a third are reducing the number of suppliers they choose.
As Egypt's economy expands into new sectors and establishes itself as Africa's manufacturing hub, 28% of executives see market expansion as a key driver of export growth. Europe (37%) and North America (34%) are expected to significantly increase export earnings in 2024. Technological advances (35%) are expected to increase production levels and import values.
Although business leaders remain cautiously optimistic, concerns such as transportation costs, input shortages, rising inflation, economic instability, tariff uncertainty, and political instability in key markets We are facing major import and export challenges.
Rizwan Soomar, CEO and Managing Director of DP World, North Africa and the Indian Subcontinent, commented: They aim to strengthen their supply chains with technology and tap into new growth markets. These findings are consistent with his DP World's efforts in Egypt to address business challenges and strengthen resilient supply chains through the deployment of technology. For example, at Ain Sokhna Port, our technology has increased truck delivery times by 35% and vessel productivity by 16%. We also introduced multichannel payment solutions and customer self-service applications for real-time data access to enhance cargo management and visibility. Along with the development of end-to-end logistics solutions in Egypt, backed by DP World's suite of CARGOES technology platforms, resilient supplies enable businesses to navigate trade challenges seamlessly and efficiently. He aims to build his chain his solution. ”
