Page 24 - Logistics Update Africa March - April 2024 issue for Website

INDUSTRY REPORT

Samaila Zubairu, president and CEO, AFC
said during the project announcement.
The Board of Directors of the AfDB
approved various financing structures
valued at $696.41 million for Burundi
and Tanzania to start Phase II of the Joint
Tanzania-Burundi-DR Congo Standard
Gauge Railway (SGR) Project. The
construction of this railway will allow
Burundi to intensify the exploitation
of nickel, of which the country has the service network, connecting Mogadishu,
10th largest deposit in the world in the Somalia to Sharjah, UAE, exemplifies the
Musongati mining fields. The country also growing focus on strengthening air cargo
has resources such as lithium and cobalt, connectivity within Africa. Additionally,
which are expected to generate significant countries like Kenya and Senegal are
revenue for the country through the rail implementing trade facilitation initiatives
link with the port of Dar es Salaam which to expedite customs clearance, further
currently accounts for 80% of the country's streamlining the process.
import and export trade.
The AfDB also approved a loan of E-COMMERCE
$196.43 million for Namibia to implement We need investments E-commerce is a significant growth
the second phase of its Transport to create engine, with the International Trade
Infrastructure Improvement Project (TIIP). opportunities, uplift Administration forecasting Africa to
The project aligns with Namibia’s long-term surpass half a billion e-commerce users
Vision 2030 to the country’s Namibia’s communities and by 2025, which will have shown a steady
logistics value chain by tackling railway strengthen the 17% compound annual growth rate
infrastructure bottlenecks. It will also help economy. This will (CAGR) of online consumers for the
to strengthen the trade competitiveness market. Leading the way in this evolution
of Namibia and the southern African significantly boost is Ethiopian Airlines with their recent
subregion. “The project will maximise our Blue Economy inauguration of a state-of-the-art $55
the benefits and be transformative for the and enhance our million e-commerce logistics facility in
competitiveness of Namibia and assist Addis Ababa. However, streamlining
in attaining the Vision of the country exploration for customs procedures and improving last-
becoming a regional logistics hub by 2030 possibilities of trade mile delivery remain key challenges.
while catalysing development change in and investment in the
neighbouring countries and the sub-region. SUSTAINABILITY
This project will also connect Namibia to Oceans. Africa's trade is set to soar thanks to
Africa’s Copper Belt, and achieve regional WILLIAM RUTO AfCFTA's streamlined regulations and air
railway connectivity,” Leïla Mokaddem, the PRESIDENT OF KENYA travel initiatives like the Single African
bank’s director general for Southern Africa, Air Transport Market (SAATM) and
stated during the announcement. boosting cargo handling capabilities IATA’s Focus Africa initiative. However,
and attracting new airlines. This trend with growth comes responsibility.
AIR CARGO aligns with the positive outlook from the Sustainable development is also crucial,
Air cargo serves as a vital artery for Africa, International Air Transport Association and industry leaders like Swissport,
transporting high-value and time-sensitive (IATA), which forecasts a 5.2% annual Menzies Aviation, and African Airlines
goods. However, challenges remain. growth rate for African air cargo traffic Association (AFRAA) among others are
Limited airport capacity, lack of cold over the next five years (2024-2029). prioritising eco-friendly practices through
chain infrastructure, scarcity of dedicated MSC Mediterranean Shipping Company IATA’s Focus Africa. This commitment
freighter planes, and cumbersome customs announced the opening of a state-of-the- ensures Africa's aviation thrives while
procedures pose significant hurdles, art 15,000-metre cold storage facility in minimising its environmental impact.
especially for flowers and perishable items Durban in March 2024 having a capacity Overall, Africa's infrastructure is
which are a significant export for many of 8,000 to 10,000 pallets. Moreover, undergoing a revolution, with long-term
African countries. major players like Ethiopian Airlines are investments building efficient networks
Despite these obstacles, the future of further fueling this growth by expanding that empower global competition.
African air cargo is promising. Airport their freighter network with the addition As partnerships flourish and innovation
modernisation projects like those of five new B777s. Kenya Airways emerges, a bright future awaits
underway in Rwanda and Ghana are Cargo's recent expansion of its freighter African infrastructure.

22 LUA MARCH - APRIL 2024