Page 8 - LUA January - February 2023 Magazine

FOCUS

African landscape demands

LOGISTICS TECH TO GO

A LAYER DEEPER

Africa, like any other region in the world, has been using the most out
of its entrepreneurs and technopreneurs to solve the inefficiencies
and hurdles in its logistics. The one way they are growing is by
collaborating and leveraging the best from each other.
reports Libin Chacko Kurian

ogistics technology companies
around the world are helping
businesses to improve the efficiency
Land effectiveness of the logistics
industries. These tech-based logistics
companies streamline and optimise supply
chain processes, enabling businesses to
effectively manage the movement of goods
and materials. And it is the same with the
African continent.
However, many African countries lack
a robust infrastructure for transportation
and logistics, which can make it difficult for
businesses to track the movement of goods
and materials.
For example, the transport costs in
the Northern Corridor, an important
transport route in the East and Central
African countries of Burundi, Eastern DR
Congo, Kenya, Rwanda, South Sudan and
Uganda are estimated at $1.8 per km per
container, according to a survey carried
out by the Shippers Council of East Africa
(SCEA), which is significantly higher than
international rates. Further studies by SCEA
also note that the Covid-19 pandemic has
further increased these logistics costs on
several fronts making it difficult to move issues such
goods in the continent. as private
Mark Mwangi, founder & CEO of the infrastructure (e.g.
Nairobi-based digital logistics marketplace Forklifts, Automation etc), public
Amitruck agrees with the fact that Africa infrastructure (e,g, paved roads, bridges
is still lagging slightly behind other regions etc) and governance (trade zones, customs, logistics industry in Africa is behind when
and markets. “The logistics sector is highly corruption reduction etc),” he said. compared to that of other continents.
fragmented and requires consolidation in Sola-Usidame, founder and CEO He pointed out that in India, a similar
order to make the adoption of new solutions of the Nigerian freight management market, the industry is adapting to digital
and technologies viable, and solve various startup OnePort 365 also thinks that the transformation at a very fast rate.

6 LUA JANUARY - FEBRUARY 2023