Page 23 - LUA March-April 2025
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Africa, with slow clearance processes                               air. By promoting investment in transport
         and corruption causing significant                                  infrastructure, AfCFTA helps reduce high
         bottlenecks. In some regions, cargo                                 logistics costs that have long hindered
         clearance can take several days due to                              intra-African trade. The agreement
         excessive paperwork. While countries                                encourages regional cooperation in
         like Rwanda and Kenya have introduced                               upgrading roads, railways, and ports,
         digital customs systems to streamline                               ensuring better connectivity
         operations, implementation across the                               for landlocked nations reliant on
         continent remains uneven, limiting the                              multimodal transport.
         full potential of multimodal transport.  The AfCFTA is                 Nabil Sultan, then Divisional Senior
           African governments and investors are   expected to increase      Vice President, Emirates SkyCargo, had
         prioritising key infrastructure projects to   intra-African trade   stated in an interview with Reji John,
         improve multimodal transport networks.                              Editor, STAT Media Group at Air Cargo
         Projects include the Kenya-Uganda        by over 50 percent,        India 2024, “The dynamic of multimodal
         SGR extension, Tangier-Med port, and     creating the world's       is absolutely changing. We're probably
         upgrades to cargo facilities at Addis    largest free trade         going to see a lot of different multimodal
         Ababa and Lagos airports. Deep-water                                transportation happening for goods
         ports, such as Berbera and Lekki, are also   area, covering 1.3     across the globe.”
         being developed.                         billion people across         Africa’s ambition to create an
           Financing remains a critical           54 countries with          integrated multimodal transport system
         challenge, with governments leveraging                              requires urgent action in several areas.
         public-private partnerships (PPPs)       a combined GDP of          The need for policy harmonisation
         and foreign direct investment (FDI) to   USD 3.4 trillion.          across regions to streamline cross-
         fund large-scale projects. Multilateral                             border trade regulations is evident.
                                                           AMADOU DIALLO
         institutions, such as the African              DHL GLOBAL FORWARDING  Investing in digital customs systems
         Development Bank, provide essential                                 and logistics tracking technology
         funding. Some governments are issuing                               will also reduce delays and enhance
         infrastructure bonds to raise domestic   Amadou Diallo, Chief Executive   efficiency. Furthermore, capacity-
         capital. Strengthening domestic financing   Officer, DHL Global Forwarding, Middle   building initiatives for transport and
         mechanisms is crucial for sustainable   East and Africa, stated, “The AfCFTA is   logistics professionals will help improve
         transport infrastructure development.   expected to increase intra-African trade   operational efficiency.
         These investments are expected to improve   by over 50 percent, creating the world's   Africa’s multimodal transport system
         Africa's multimodal transport network and   largest free trade area, covering 1.3   is at a crossroads. While significant
         enhance regional connectivity.    billion people across 54 countries with a   investments have been made, persistent
           The African Continental Free Trade   combined GDP of USD 3.4 trillion.”  challenges must be addressed to unlock
         Area (AfCFTA) plays a crucial role in   A well-functioning multimodal   the continent’s trade potential. To propel
         advancing multimodal logistics across   logistics network is essential for   Africa's growth and competitiveness, it's
         Africa by facilitating seamless trade and   AfCFTA’s success, enabling efficient   imperative to address these obstacles and
         transport integration.            transportation across road, rail, sea, and   revolutionise the transport network.





























          MARCH - APRIL 2025                                                                               LUA 21
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