COVID-19 disrupting global supply chain, says ACCI president
President of Abuja Chamber of Commerce and Industry (ACCI), Adetokunbo Kayode, has said Coronavirus is disrupting global supply chain, insisting that African businesses may be negatively affected.
He stated this while hosting a business delegation from the European Union (EU) led by Gianioca Russo of Q and T in his office in Abuja yesterday.
In a statement issued by his Media & Strategy Officer, Lubem Gena, he commended the Federal Government for the ongoing drive to boost internal manufacturing and production capacity.
He stated that COVID-19 was creating a challenge that may affect economic growth of most African nations and China as slowing down implies commodity and oil exporting nations would be hit hard.
He noted that some companies depend solely on China for parts and materials, saying imports from India are becoming difficult to access, because some Indian colonies depend on China for supplies of certain parts in their production chain, especially pharmaceuticals.
Citing Allard Castelein, CEO of Rotterdam Harbor, Kayode said, “The effect of Coronavirus is already visible, while departures from Chinese ports have already decreased by 20 per cent.”
He stressed that activity at the French port of Le Havre is also slowing and could drop by 30 per cent within two months, while the situation at South Africa and other African ports was also getting slower.
According to him, COVID-19 is not just a health pandemic, but also an economic one that may plunge global economy into recession.
Reacting to the statement, Russo described the situation as a global threat, noting that the impact may be more severe economically than for health emergency.
“This is a global challenge. Governments and businesses must cooperate to cushion the effect, not only on the global supply chain, but also inter-related world of production and commerce,” he added.