|EMERGING MARKETS REVIEW||Connected Post-Harvest Logistics|
March 5th, 2020
Welcome to my monthly newsletter featuring emerging markets intelligence for forward-thinking executives.
As a courtesy to my reader community in the SMB cold food transport, storage, and tracking technology sectors, information is gathered monthly from news stories, leading opinions, and other sources potentially helpful to US firms considering data-connected post-harvest logistics business opportunities in emerging market countries. Each highlight includes a link to read the article in full.
This newsletter is inspired by my latest research analysis report on Connected Next Generation Post-Harvest Logistics in Emerging Countries.
Thank you for being part of my newsletter reader community.
BRIDGING THE INFRASTRUCTURAL GAPS IN AFRICAN LOGISTICS
January-February 2020 - Logistics Update Africa (LUA) Magazine
According to LUA, the African Union is on its way in executing the vision articulated within "Agenda 2063," a declaration signed in 2013 to develop Africa into a global powerhouse from 2013 to 2063. Infrastructure development is noted as a key component with a focus on transport, information and communications technology (ICT), energy, and more. Along these lines, LUA reports on several key infrastructure examples as the LAPSSET effort (Lamu Port, South Sudan, Ethiopia Transport Corridor) - a project which connects three African countries as well as providing connections to other neighboring nations through developments as a port, highways, airports, and others. Railway development in Kenya is another project, this one supported by Russia along with an agreement by China to build and finance the effort. LUA also notes other plans, donor funds, and efforts for attracting private capital.
A CASE OF DIGITAL AIRFREIGHT CORRIDOR
February 28, 2020 - Logistics Update Africa (LUA)
Logistics Update Africa reports that airports are increasingly interested in implementing a technology system being referred to as a "system of digital airfreight corridor." Purpose being, to enable digital connectivity between different airports in effort to enhance the processing of large volumes of cargo data, and to gain more efficient access to cargo at international airport gates, among other foreseen benefits. According to LUA, Vandana Aggarwal, economic advisor to India's ministry of civil aviation, expressed support for building such international relationships at the recent Air Cargo India 2020 event, and requested that a project with a pending signed memorandum of understanding (MoU) be operational by the end of March. This MoU is in reference to a system establishing digital connectivity between Mumbai Airport and Amsterdam Airport Schiphol.
EAST AFRICA’S HUGE LOCUST OUTBREAK NOW SPREADS TO CONGO
February 25, 2020 - Associated Press (AP)
The Associated Press is reporting that parts of East Africa are battling the worst swarms of locust outbreaks not seen in 70 years, and that the U.N. has warned of major hunger problems in the region. A warming Indian Ocean is producing more powerful tropical cyclones that are hitting the African region, and their winds are reported to be carrying in locusts from the Arabian Peninsula. According to AP, swarms of locusts can reach the size of major cities and devastate crops and animal pastures. The U.N. is currently appealing for more funds to help control the outbreak.
WALL STREET WEEK AHEAD: INVESTORS BET EMERGING MARKETS WILL WEATHER CORONAVIRUS IMPACT
February 14, 2020 - Reuters
Reuters is reporting, in this February 14th article, that around $730 million has flowed back into emerging markets exchange-traded funds, or ETFs, during the previous week after seeing two straight weeks of outflows. Prior to the Coronavirus outbreak, emerging market stocks had been on a steady climb since December based on a global economic growth forecast and a China Phase 1 trade deal. According to Reuters, investors appear to be hopeful on limited economic damage as they view this development as a more short-term factor.
TRUMP ADMINISTRATION TO OPEN FREE-TRADE TALKS WITH KENYA
February 6, 2020 - Associated Press (AP)
According to the Associated Press, the U.S. and Kenya may be on a path to developing a trade agreement between the two nations. A trade agreement draft effort has been ongoing and would ensure Kenya's products continue to have open access to the American market after the 2025 expiration of the African Growth and Opportunity Act. AP also reports on possible conflicting reports on an agreement by the U.S. to support development of a highway connecting Kenya's capital, Nairobi, with Mombasa. Local media had previously reported it as abandoned by the U.S. and that Chinese efforts were being made to gain this contract.
MISSION PRODUCE TALKS SOUTH AFRICAN AVOCADO PLANS AND CALIFORNIA EXPECTATIONS
February 13, 2020 - FreshFruitPortal.com
FreshFruitPortal.com reports that Mission Produce, a California grower of Avocados, has announced partnerships with South African farm ZZ2 and Core Fruit which finds markets for farmer products. While Mission Produce's long standing relationship with ZZ2 has focused on helping them setup ripe centers, the current change has them partnering on operations. That is, exporting fruits to markets within Europe and Asia. According to FreshFruitPortal.com, the aim is to also engage third party growers in South Africa, providing them with opportunity to export their products. Mission Produce plans to first build relationships with farmers, and eventually vertically integrate operations.
A CLEAN ENERGY FUTURE WITH HYDROGEN COULD BE CLOSER THAN WE THINK
January 31, 2020 - World Economic Forum (WEF)
In this World Economic Forum article, the authors present that the conditions and timing are right for investments in hydrogen energy. The sector shows strong momentum... alliances, developments, and deployments are taking hold in more geographies and sectors. For instance, in January 2020, France rolled out a hydrogen-powered bus for what looks like public transportation. And the applications are promising... cars, heavy-duty trucks, and heating for buildings. Until now, according to the article, what has kept hydrogen energy out of reach has been its high cost for everyday use. However, that's now changing as the Hydrogen Council (a CEO-led coalition) believes the solution to cost reduction will come through massively scaling up production, distribution, and manufacturing. Expectations are that by 2030, the cost of hydrogen solutions will drop by 50%, making them competitive with low-carbon alternatives. This decade may be a turning point for clean energy.
About Sal Yazbeck, Ph.D.
This newsletter is published monthly by Sal Yazbeck. Based on his latest research, Sal offers strategic research, advice, and consulting support to motivated US firms (as IoT device companies, reefer transport operators, and cold food storage operators) with an interest in post-harvest type expansion opportunities in emerging market regions. For more information and contact, please visit our website at www.salyazbeck.com.