Topic: 2024-Supply Chain Stability
Country: South Africa
Delegate Name: Liem Krueger
Special Political Committee
The Supply Chain Crisis
The Republic of South Africa
Liem Krueger
Forest Hills Eastern High School
During the 21st century, the global supply chain which supplies essential goods and products has come under jeopardy due to a multitude of events. The global Covid 19 pandemic in 2020 caused an unprecedented shut down of all unnecessary businesses in various countries. Many businesses went bankrupt due to lack of sales and large numbers of workers went unemployed leading to mass unemployment. An unfathomable number of goods went into shortages due to lack of production including toilet paper, clothes, shoes, and medicine to name a few. Even today, numerous supply chains are still trying to bounce back from such an enormous economic blow and labor shortage. The war between Russia and Ukraine has caused various supply chain issues due to the inability of many ships and planes to export goods due the constant battles and hazards posed by the war. One notable shortage is grain which is a major export from Ukraine, and Russia has damaged numerous grain silos and trade ships in Ukrainian harbors. Territorial disputes in the South China Sea have led to clashes between Chinese ships and Filipino and Vietnameses ships. The South China Sea is a valuable trade route for oil with 10 billion barrels of oil passing through the lane in 2023. Intensified weather events including hurricanes, earthquakes, and tropical storms pose a significant threat to maritime and land trade. In 2004, Hurricane Ivan destroyed 90% of Grenada’s forest vegetation along with valuable topsoil for plants. The hurricane also wiped 85% of Grenada’s nutmeg crop, a top export, and 60% of its cocoa trees. As it stands, the global supply chain is too vulnerable to disruptions and catastrophic events, and South Africa is working with the United Nations to better prepare the global supply chain for such events.
South Africa has begun to rise up the global supply chain due to its vast amounts of raw materials including aluminum, cobalt, lithium, manganese, and copper which are vital parts in various tech industries including the car industry. Africa as a whole possesses an abundance of metals needed for electric cars, a growing market, which is not seen in most parts of the world. If South Africa can obtain contracts for exploration for metals used in high-tech products, then they can enhance their domestic industries which would allow them to design, obtain, manufacture, and supply the needed components. Such production could raise South Africa’s position on the supply chain market and raise wages in Africa as a whole, as their current minimum is $220 per week compared to the $668 in the Americas. However, South Africa suffers from rail and port shortages. The country’s rail system is owned by the state-owned Transnet SOC Ltd. which has been facing numerous challenges including management upheavals, derailments, and equipment shortages. The conflicts in Gaza and Ukraine have worsened the problems by disturbing the distribution of vital goods.
South proposes that the UN could help prepare the global supply chain from disturbances by shifting its reliance off of goods from conflicted areas such as Ukraine. Instead, they should begin making efforts to build up infrastructure in countries with vast potential in certain markets such as South Africa in the electric car industry. By doing this, the UN can minimize the risk posed by conflict on trade and supply chains and better prepare the global supply chain for disturbances.
Works Cited
https://www.nytimes.com/2022/09/02/world/africa/south-africa-shell-oil.html#:~:text=South%20Africa%20is%20the%20largest,its%20proven%20reserves%20are%20offshore.
https://unctad.org/news/africas-rise-global-supply-chain-force-unctad-report
https://www.supplychainbrain.com/articles/38906-south-african-supply-chain-disruptions-far-from-over-pwc-says
