This archive report was first published on 7 May 2020.
East Africa's Supply Chain Vulnerabilities Exposed by Covid-19 ¶
As the world grapples with the Covid-19 pandemic, the East African Community (EAC) is facing a significant threat to its supply chain. The pandemic has led to lockdowns, supplier disruptions, and export restrictions, leaving EAC countries vulnerable to shortages in critical medical instruments and protective supplies.
According to a study using 2017 UN Comtrade data from the Observatory of Economic Complexity, EAC countries are highly dependent on imports from China, Germany, the US, India, and South Africa. These countries account for a large percentage of EAC medical instruments imports, making the region highly vulnerable to supply disruptions.
With the global demand for medical instruments and protective supplies increasing, the World Customs Organisation published a HS Classification reference document for Covid-19-related medical supplies. The study analysed products under medical instruments, therapeutic respiration apparatus, textile face-masks, surgical masks, and disposable face-masks made of non-woven textiles and rubber surgical gloves.
Sanitisers, made from ethanol or isopropyl alcohol, are another critical product in short supply. The study found that EAC countries are highly dependent on imports from South Africa and India, which are currently under lockdown, increasing the risk of supply chain disruptions.
However, the pandemic has also presented an opportunity for EAC countries to build local industries and reduce their dependence on imports. For example, some companies in Kenya and Tanzania have started producing hand sanitisers and masks, while South Africa is evaluating proposals to develop ventilators using locally available components.
As the African Continental Free Trade Agreement comes into effect, African countries can conduct a diagnosis of their vulnerability to supply disruptions and develop a concrete plan to reduce their dependence on imports. By building local industries and taking advantage of the resources and talent available, Africa can become more self-reliant and innovative in the long term.
