Covid -19 is seriously disrupt­ing global supply chain and African businesses may soon be hard hit, President of Abu­ja Chamber of Commerce and Industry (ACCI), Adetokunbo Kayode, has alerted.

Speaking while hosting a business delegation from the European Union led by Gi­anioca Russo of Q and T in his office in Abuja on Tuesday, the ACCI boss raised the alarm that the ongoing disruption af­fecting the big economies may soon openly affect businesses in Africa later this month.

“We commend government for the ongoing drive to boost internal manufacturing and production capacity. We must do more especially as Covod-19 is creating a challenge that may affect economic growth of many African nations. That China is slowing down implies commodity and oil exporting nations are going to be hard hit.

“Several reports from our members within and outside the country confirm that the peak of the impact of Covid-19 on global supply chains will occur in mid-March, forcing thousands of companies to throttle down or temporarily shut assembly and manufac­turing plants in the U.S. and Europe”, the ACCI chief said.

He is also noted that “the im­pact may be more than envis­aged as many companies rely heavily or solely on factories in China for parts and materials.”

Citing the falling activity of Chinese manufacturing plants in the past month, he said Nigeria and some other African nations will be affect­ed because of interlinking to China and regional supply chain hubs like South Africa and India.

“Reports from our mem­bers within the Chambers of Commerce show that certain imports from India are becom­ing difficult because some of the Indian colonies depends on China for supply of cer­tain parts in their production chain. This is so in the phar­maceutical sub-sector and other areas.

Kayode, who emphasised the need for local capacity de­velopment in manufacturing and other business sectors, said the disruption is already affecting ports, citing Allard Castelein, the CEO of Rotter­dam harbor.

He quoted Castelein as not­ing that, “the effect of the coro­navirus is already visible. The number of departures from Chinese ports has decreased by 20% these days.”

He stressed that activity at the French port of Le Havre is also slowing and could drop by 30% within two months while situation at South African and other African ports are getting slower.

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