Page 6 - LUA March-April 2025

COVER STORY

Fresh but fragile

AFRICAN PERISHABLES

NEED A LOGISTICS FIX

Africa’s perishable exports hold immense global
potential, but logistical inefficiencies — from air cargo
shortages to cold chain failures — continue to
hinder growth, reports Libin Chacko Kurian.

frica is a key supplier of fresh HIGH COSTS, LOW CAPACITY
flowers, fruits, and vegetables AIR FREIGHT
to global markets, yet high For instance, Habiba Ben Barka, Chief
Alogistics costs and infrastructure of Africa Section, UN Trade and
challenges threaten its competitiveness. Air Development (UNCTAD) noted “90
freight shortages, weak cold chain networks, percent of all Kenyan flowers move by air,”
and unpredictable shipping routes create highlighting the industry’s dependence on
major hurdles for exporters. As the industry sufficient air cargo capacity.
seeks solutions, collaboration between However, seasonal fluctuations and
airlines, policymakers, and logistics shifting airline priorities often lead to
providers is critical to unlocking Africa’s capacity shortages, as airlines divert
perishable trade potential. resources to more profitable routes such as
China and the U.S.
THE COST OF MOVING Raphael Kiptis, Head of Finance,
PERISHABLES Sian Roses, one of Kenya’s largest flower
Logistics costs in Africa remain exporters, emphasised that air freight
significantly higher than in other capacity remains the biggest challenge
regions.“Our transport costs are for exporters. “In peak seasons, space is
between $5 to $8 per kilometre per TEU, scarce, and freight rates surge, squeezing
compared to $1 to $2 per kilometre margins for growers,” he explained.
in Asia,” says Agayo Ogambi, Chief In late 2024, a drop in air cargo capacity
Executive Officer, Shippers Council of from Nairobi to Europe left exporters
Eastern Africa (SCEA). struggling to find space. “We had the
According to him, these high costs product, we had buyers, but we had no way
are driven by poor road conditions to move it. This kind of disruption leads to
leading to longer transit times, traffic waste and financial losses,” Kiptis noted.
congestion and delays at checkpoints and He urged airlines to commit to more
a lack of dedicated lanes for perishable predictable capacity planning rather
cargo at weighbridges. Both air and sea than shifting resources based on
freight rates are high, making it difficult short-term demand fluctuations.
for businesses — especially SMEs — to Meanwhile, Patrice Ngenga,
remain competitive. Technical, Standards and
Talking particularly about Kenyan Compliance Officer Fresh Produce
perishable exporters, Okisegere Ojepat, Exporters Association of Kenya
Chief Executive Officer, Fresh Produce (FPEAK), highlighted that air
Consortium of Kenya (FPC Kenya), said freight rates have made exports
“The cost of freight is the single most prohibitively expensive for many
expensive part of this business.” producers.
Kenya relies heavily on air freight to
transport its fresh produce to markets in
Europe and beyond.

4 LUA MARCH - APRIL 2025