It’s fair to say that the last couple of years have been hugely disruptive for businesses everywhere.
From the Covid-19 menace to geopolitical unrest, and rising prices to an energy shortage, we face unprecedented challenges every day.
Over the coming 12 months, the analysis and projections for both organisations and individuals need to be guided by the uncertainty of calamities, digital transformation opportunities, and most importantly, the vast chances of sustainability.
The impact of supply chain issues since the global health crisis began in 2020 is still being felt today.
In China, for instance, whenever there’s an outbreak of Covid-19, everything in the area shuts down, leading to delays for some component manufacturers - particularly with regard to the semiconductors and base metals vital to the production of chips.
Closer home, in Kenya, the Covid-19 pandemic has created an urgent need for timely data and evidence to help monitor and mitigate the social and economic effects of the crisis.
The pandemic had a strong impact on the livelihoods of Kenyan households, even though employment and income levels are recovering.
The second lockdown resulted in another surge in food insecurity. While access to education worsened again due to renewed school closures, health services remained widely accessible to the population.
These are examples to show how uncertain times can capsize a stable channel and lead to many effects across the board.
And this has a knock-on effect. Even the big players are seeing eight- to 10-month delays in delivering products.
This can be challenging for companies whose customers are expecting these goods. It means they are unable to deliver products and provide the services their customers expect.
Moreover, rising energy prices have added yet another cost to businesses, leading many companies to pause investment.
Increasing prices have created lower demand for some products, too, meaning many channel partners will have a high level of stock, which no one is buying.
These supply chain issues are a significant challenge for everyone and, given that the current geopolitical crisis is disrupting supply routes across the globe, they are likely to continue for the foreseeable future.
Digital transformation is vital to all aspects of business today. Take sustainability, for example.
As environmental concerns continue to grow, most organisations want to cut down on travel, to reduce their carbon footprint.
Sustainability will be an increasingly important focus in the years ahead. To meet ESG goals, many companies will have targets in place to reduce their carbon footprint.
There’s also growing investment in renewable energy sources for more sustainable, accessible, and cost-effective power – especially considering rising energy prices.
Fortunately, there is already a wealth of government support and funds available to encourage sustainability initiatives, and we can expect to see a growing number of regulations being introduced to further help companies with these.
The author is the Regional Manager, Eastern Africa, Eaton Electrical Sector.
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