Food delivery firms could solve logistical problems of Africa and Asia's vaccine delivery


Nick Webster
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Private companies with experience of delivering perishable goods to remote locations could step in to ease logistical challenges facing vaccine distribution around the world.

Logistic experts speaking at the Hope Consortium virtual conference called on established businesses to aid the last-mile of delivery of doses in remote corners of Africa and Asia.

Cold-chain storage and delivery is one of the pressing concerns preventing vaccines from reaching isolated communities, as they must be kept in refrigerated temperatures on leaving production plants.

“The first challenges is to get doses into the countries,” said Dr Pascal Rey-Herme, co-founder and group medical director of International SOS, a leading health and security services company.

In a time of crisis, governments should also look at less obvious support

“When you have pharma companies and others established in nations that have been distributing vaccines for 40 years, they are the best ones to develop a covid supply chain.

“But as we are in a time of crisis, governments should also look at less obvious support.

“Firms delivering perishable goods to remote areas have a lot of experience in this, such as soft drink manufacturers.

“They should also be able to help with the logistical challenges of delivering vaccines.

“It would not overload government infrastructure, and would help deal with issues of waste and vaccine confidence.”

Dr Rey-Herme said examples of private companies adding mosquito nets to their regular delivery load of everyday items helped governments reach more communities in the battle against malaria.

Since 2004, 2 billion mosquito nets have been delivered world-wide using a mix of government and private logistic chains.

That infrastructure should now be replicated to aid the roll-out of Covid-19 vaccines, the experts said.

Humanitarian efforts to deploy shipments of Covid-19 vaccines around the region are well underway, with millions of doses already committed and dispatched.

But accessibility remains an issue in large swathes of Africa and Asia.

Madhav Kurup, regional chief executive of Hellmann Worldwide Logistics - a German firm specialising in deliveries by air, sea, road and rail, said the UAE was perfectly placed to aid the global supply of vaccines.

“We are aware of accessibility of Covid vaccines in south Asian countries,” he said.

“Because of its geographic location the UAE can play an important role in the delivery chain process for vaccines.

“The UAE has a major role to play to deliver vaccines from India, the pharmacy of the world, to where they are most needed."

“The new challenge is capacity and compliance.

“Planning the right level of quantity with the high level of vaccine hesitancy around the world is a challenge to ensure the vaccines are not falling into the wrong hands.

“No one is safe until everyone is safe."

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The company offers payments/bribes to win key contracts in the Middle East

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180 Petrofac employees laid off in the UAE

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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How has net migration to UK changed?

The figure was broadly flat immediately before the Covid-19 pandemic, standing at 216,000 in the year to June 2018 and 224,000 in the year to June 2019.

It then dropped to an estimated 111,000 in the year to June 2020 when restrictions introduced during the pandemic limited travel and movement.

The total rose to 254,000 in the year to June 2021, followed by steep jumps to 634,000 in the year to June 2022 and 906,000 in the year to June 2023.

The latest available figure of 728,000 for the 12 months to June 2024 suggests levels are starting to decrease.

 


 

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