What does your workspace look like? Mine looks orderly for circuits and systems! I am an engineer and the founder of FASMICRO, Africa’s only Intel Corporation’s programmable microprocessor knowledge partner. We design systems, and make critical systems work in Africa. Most are so critical that we cannot even tell you about them.

We make power plants run well. We help telcos. We enable intelligent systems. We support  universities. We program systems and build device drivers to enable hardware systems to communicate. #WeAreEngineers.

Celebrate engineers in the house. #BeAnEngineer, the zenith of all professions because engineers build nations, and tools for every profession to function (pardon the bias, that is typical.) Nice weekend everyone and think how to engineer a #betterAfrica. A #greaterAfrica on my mind.

Factors of production enable the creation of products and services towards fixing frictions in markets. One of those factors, Capital, is very catalytic in the operations of firms. Among other things, it makes it possible for you to acquire other factors you do not have (you may need capital to pay workers, buy land, etc).

Join us tomorrow as we discuss how to raise capital and launch your business venture, including a new subsidiary or division in an existing company. As I write, Tekedia Capital is investing in 15 companies covering 4 continents and across 8 industries. What do we look for in these ventures?

Join us at Tekedia Mini-MBA >> our product is knowledge

In the ever-evolving landscape of global trade, nations are increasingly facing the challenge of maintaining and strengthening trade relations amid rising geopolitical headwinds. The current geopolitical climate, marked by heightened tensions and economic realignments, has prompted countries to reevaluate their trade strategies to ensure economic resilience and security.

Geopolitical events have a profound impact on international trade, influencing the flow of goods, services, and investments across borders. Recent years have seen a surge in trade restrictions and financial sanctions, reshaping the global trade map and prompting a shift towards economic blocs aligned by political and strategic interests.

Trade restrictions have more than tripled since 2019, reflecting the growing concerns over national security and economic sovereignty. The geopolitical risk index spiked in 2022 following significant events such as Russia’s invasion of Ukraine, leading to a reconfiguration of trade and investment flows along geopolitical lines.

Friend-shoring and Diversification: Strategies for Resilience
In response to these challenges, countries are exploring strategies like friend-shoring—relocating supply chains to politically and economically aligned nations. This approach aims to mitigate risks associated with geopolitical tensions and ensure a stable trade environment.

Diversification of trade partners and sources of critical goods is another strategy being adopted. By broadening their economic connections, countries can reduce their vulnerability to unilateral actions and sanctions from other states.

International organizations such as the OECD, IMF, and WTO forecast a rebound in global trade for 2024 and 2025, despite the slowdown experienced in 2023 due to inflation, surging interest rates, and sluggish demand. These bodies play a crucial role in facilitating dialogue and cooperation among nations, helping to navigate the complex interplay between geopolitics and trade.

Advising Governments and Businesses

Businesses and governments must work together to manage cross-border commercial ties effectively. Senior executives from international businesses have provided insights on how geopolitical dynamics are perceived and addressed within the corporate sphere. Their recommendations can guide policymakers in designing strategies that balance economic interests with geopolitical realities.

One of the most notable changes has been the rise of ‘friend-shoring,’ where countries seek to align their trade relationships with geopolitical allies. This trend is a departure from the previous era of globalization, which emphasized economic efficiency over political considerations. The result is a trade landscape where economic integration is increasingly influenced by national security concerns and strategic alliances.

The redirection of trade and investment flows along geopolitical lines is evident. For instance, China’s share in US imports declined significantly following trade tensions, while direct trade between Russia and the West collapsed in the wake of sanctions imposed on Russia. Similarly, the geometry of global trade is being reconfigured as countries like the United States reduce the geopolitical distance of their trade, seeking closer ties with allies and diversifying trade origins.

This geopolitical reconfiguration of trade is not without its trade-offs. On one hand, it can lead to increased trade concentration, potentially stifling economic growth. On the other hand, diversifying trade relationships can increase the geopolitical distance of trade, presenting its own set of challenges.

For businesses, these shifts necessitate a strategic repositioning to navigate the uncertainties of the new trade environment. Scenario planning, cultivating an insights edge, and building geopolitical muscle have become essential for organizations aiming to thrive amid the changing dynamics of global trade.

Strengthening trade amid geopolitical headwinds requires a multifaceted approach, combining strategic alliances, diversification, and active engagement with international bodies. As nations grapple with the complexities of the current geopolitical landscape, the pursuit of resilient and secure trade relations remains a top priority for a stable global economy. The path forward will necessitate adaptability, foresight, and a commitment to collaborative problem-solving on the part of all stakeholders involved in the intricate web of international trade.