By Miftaudeen Raji

The United Nations Conference on Trade and Development (UNCTAD) declares that developing economies accounted for more than 60% of global seaborne trade in 2021.

The conference affirmed that it is a significant shift that highlights their growing influence as rapid industrialisation, urbanisation, and population growth in these regions contributing to increase demand for raw materials, energy resources, and consumer goods, impacting global shipping trends.

Speaking on the raising development, a Nigerian Maritime expert, Tairat Titiloye, pointed that Africa in particular has seen remarkable growth in its trade volume.

“The African Continental Free Trade Area (AfCFTA), launched this year, is expected to increase intra-African trade by over 50% by 2035, according to the World Bank,” she said.

Titiloye argued that global shipping industry, long dominated by wealthy nations, is undergoing a major transformation as developing economies in Africa, Asia, and Latin America are increasingly shaping its future.

These emerging markets are driving changes in trade patterns, port infrastructure, and technological advancements, making them key players in the future of marine trade.

Increased cargo flows

As trade with China continues to grow, African nations like Nigeria, Kenya, and South Africa are expanding their port capacities to accommodate larger vessels and increased cargo flows.

China, the world’s second-largest economy, continues to dominate global shipping through initiatives like the Belt and Road Initiative (BRI), which is expanding trade routes and enhancing port facilities across Asia, Africa, and Europe. With an estimated 14.7% of global merchandise exports in 2021, China remains a key player in shaping international shipping patterns.

Trade relations

Titiloye said Latin American economies, including Brazil, Chile, and Mexico, are also strengthening trade relations with China, the United States, and Europe. Maritime trade in the region grew by 8% this year, driven by agricultural and mineral exports, as reported by the Economic Commission for Latin America and the Caribbean (ECLAC).

As these economies grow, they are investing heavily in port infrastructure, modernising facilities to support rising trade volumes.

In Africa, new projects like the Lekki Deep Sea Port in Nigeria Western region of the continent  and the Lamu Port in Kenya are set to enhance connectivity and trade flows, attracting foreign investments from global giants like China Merchants Port and DP World.

These developments are reshaping traditional shipping routes. The rise of South-South trade is reducing dependence on established trade corridors such as the Suez Canal and Panama Canal, with new commerce corridors linking Africa, Latin America, and Asia.

In addition to infrastructure, digital transformation is becoming a significant part of the shipping industry in developing economies. Smart port technology, blockchain logistics, and automated cargo handling are improving efficiency and reducing costs. Collaborations with countries like Singapore and the UAE are helping introduce AI-powered port management systems in developing nations. Shipping companies like Maersk and IBM are also introducing blockchain solutions to enhance supply chain transparency and reduce logistical inefficiencies.

For Africa, stakeholders  suggest key strategies to capitalise on the continent’s growing role in global shipping. These include modernizing port infrastructure, adopting automation and AI-driven technologies, improving connectivity with roads, rail, and waterways, and enhancing regional trade cooperation under the AfCFTA.

Titiloye who is versatile in Maritime Industry believed that by additional, investing in maritime workforce development and leveraging digital solutions like Smart Shipping and blockchain can help streamline operations and reduce fraud and delays. Sustainability is also critical, with an emphasis on green shipping, renewable energy, and eco-friendly vessel operations.

“Maritime security remains a key concern, and efforts to combat piracy and enhance regional cooperation are essential for ensuring safe and efficient shipping routes. Public-private partnerships (PPPs) and foreign investments in Africa’s maritime sector, particularly through initiatives like the BRI, will play a critical role in accelerating the development of the continent’s shipping industry.”

Africa has the potential

With the right strategies, Africa has the potential to become a major maritime power, transforming from a raw material exporter into a key player in global marine trade.

By modernising infrastructure, embracing technological advancements, and fostering strategic collaborations, Africa can unlock its full potential in the global shipping industry. She concluded.