Obstacles and preconditions for logistics and manufacturing improvements in Africa – a case study

A supply chain can be analysed as a network made up of the total set of raw materials supply, and several manufacturing and distribution activities. In the case of the East African country of Eritrea, each element of this network causes problems. Decades of war in this region have deprived Eritrea of the necessary infusion of new investments, technology and skills. In order to solve their supply, production and distribution problems, firms have to improve their logistics locally and seek co‐operation with foreign companies. While the government has to reduce its own role by giving public firms more autonomy, it should strengthen its role in the national economy by increasing investments in education and the transport and communication infrastructure. These actions by government and the business community are necessary not only for Eritrea, but also for a lot of other African countries.