The most recent Trade in Transition report, incorporating perspectives from international trade specialists and senior executives, including representatives from Egypt, emphasizes a significant uptick in businesses' adoption of technology and adaptable trade tactics. This study underscores the resilience of Egyptian enterprises in the face of economic adversities in 2023 and apprehensions surrounding geopolitical developments.
In response to factors like inflation, interest rates, and market fluctuations, Egyptian companies are reassessing risks through strategies like friendshoring, which involves aligning with suppliers from economically and politically similar countries. Additionally, they are exploring new export markets and implementing dual-sourcing approaches to mitigate disruptions.
The survey indicates that a significant portion of Egyptian executives (28%) plan to leverage technology to enhance the efficiency and agility of their supply chains in the future. Moreover, nearly half of the surveyed executives (48%) acknowledge the transformative role of AI in supply chain operations, with many intending to adopt it further along with other technologies like advanced automation and blockchain.
Consolidation is a key focus for Egyptian businesses aiming to minimize supply disruptions, with strategies like friendshoring and the creation of parallel supply chains being actively pursued. As Egypt expands its economy into new sectors and positions itself as a manufacturing hub in Africa, executives foresee significant export growth opportunities, particularly in Europe and North America, driven by both market expansion and technological advancements.
Despite this optimism, business leaders in Egypt face significant challenges in export and import operations, including transportation costs, input shortages, inflation, economic volatility, tariff uncertainties, and political instability in key markets.
Expressing alignment with the optimism of Egyptian executives, stakeholders emphasize efforts to address business challenges through technology implementation and the provision of advanced logistics solutions to navigate trade challenges effectively. These initiatives aim to bolster resilient supply chains, as seen in improvements in efficiency and productivity in relevant sectors.
