Compiled by Eamonn Ryan from the presentation transcript
At the 2024 GCCA Africa Cold Chain Conference held on August 23 in Cape Town, Martin Cameron, the managing director of Trade Research Advisory at North-West University, shared insights on reducing trade barriers within the framework of the African Continental Free Trade Area (AfCFTA). This is Part 3 of a three-part series.
Cameron emphasised the importance of contextualising trade data, noting that reliable trade information is available for 51 African countries. However, he pointed out that certain regions, such as Western Sahara, South Sudan, Somalia and Eritrea, face challenges due to ongoing conflict and unstable governance, leading to gaps or inaccuracies in their trade statistics.
To offer a clearer view of trade activities, Cameron presented an analysis of 467 tariff lines specifically related to the cold chain industry. He identified 42 markets where realistic trade opportunities could emerge, representing 334 potential products valued at around USD 710 billion. However, when factoring in South Africa’s production capacity, this potential dropped significantly to 32 markets and 76 products, reflecting an untapped market value of approximately USD 150 billion. He highlighted that most of this opportunity lies in North and West Africa, regions that present logistical hurdles but also considerable potential.
Drawing on entrepreneurship research, Cameron explained that the ability to recognise and capitalise on opportunities often depends on one’s preparedness to act on new information. He referenced Thomas Edison’s famous quote, pointing out that many opportunities are available to those who actively seek them. “Good fortune often favours those who are prepared,” he remarked, reinforcing the need for proactive engagement in trade.
Cameron connected this idea to a popular saying: “If opportunity doesn’t knock, build a door.” He stressed that in Africa, infrastructure and business activity form a cyclical relationship—without adequate cold chain infrastructure, the sector struggles to thrive, leading to significant food waste, which is often estimated at 40-50%.
In closing, Cameron reiterated that the forces that have shaped the industry’s current state may not be sufficient to drive future progress. He pointed out the rapidly shifting geopolitical landscape and the unique challenges it presents for African trade. Concluding with a thought-provoking insight, he reflected on a sentiment shared during his discussions: “High volatility, high variability, high uncertainty, high risk—these can lead to high returns and major opportunities. It all comes down to your appetite for risk.”