From energy and labor to logistics and metals, commodity price increases have greatly impacted the cost of goods sold (COGS) in Africa, say senior partner Marco Ziegler and coauthors. Energy-intensive sectors—including oil and gas as well as mining—have seen 10 to 20 percent COGS increases since mid-2021.
![Since 2021, commodity price increases have increased pressure on cost of goods sold in Africa.](/~/media/mckinsey/featured%20insights/charting%20the%20path%20to%20the%20next%20normal/2023/jan/gifs/cod-procurementinafrica-v6-ex2-js-shrunk-timed.gif)
To read the article, see “Procurement in Africa: Exercising a muscle for challenging times,” December 1, 2022.