Page 11 - LUA November December 2024 Issue for website
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Kenya. They also apply to other countries   Thus logistics infrastructure plays a
                                           in Africa. For instance, Visser took the   crucial role in enabling the exports of
                                           example of the West African countries   African perishables and experts point out
                                           Ivory Coast and Benin. “Ivory Coast has   the need to fill in the gaps and upgrade the
                                           a relatively well developed fresh export   infra to move forward.
                                           industry. They are able to even export fresh   For instance, Osam Iyahen, Senior
                                           coconuts by sea freight. But the smaller   Director and Head of Transport and
                                           countries like Benin, that are exporting   Logistics, Africa Finance Corporation
                                           pineapples and vegetables, do not get   (AFC), points out key gaps such as roads,
                                           enough reefer containers to ship it out by   cold chain infrastructure, disjointed/
                                           sea, and have very little capacity on air   fragmented value chains and absence of
                                           freight as well.”                 an organised marketplace for perishables.
                                             “People are fighting for the available   Africa Finance Corporation is a pan-
                                           volume on every single aircraft that comes   African multilateral development finance
                                           to the country,” he added.        institution dedicated to accelerating
                                             While unavailability of reefer   infrastructure development and economic
                                           containers is a big challenge in many   growth across the continent.
                                           countries, Ethiopia-Djibouti corridor   Iyahen thinks that all modes of
                                           faces a challenge that is exactly the   transport in Africa have considerable
                                           opposite. Visser pointed out that for   capacity shortages that hinder export
                                           every seven reefer containers that come   ambitions. He notes rails as an important
                                           in full to the Port of Djibouti only one   mode of transport for bulk, low-cost
                                           goes out full.                    movement of produce and fertiliser,
                                             “A significant number of reefer   especially connecting produce to seaports.
                                           containers are emptied in Djibouti and   “This is even more critical for
                                           Addis Ababa for local consumption.   landlocked countries that use rail to
                                           However, many of those containers   connect to seaports in neighbouring
                                           cannot find the matching with Ethiopian   countries. Current rail shortages reduce
                                           perishable produce before travelling   competitiveness,” he said.
                                           back to the Port of Djibouti for onward   He also noted the need to upgrade
                                           shipping,” he said.               sea, air freight infrastructure. “Port
                                             While challenges differ for countries,   congestion, outdated systems,
                                           Visser urges countries to focus on building   bureaucracy,  all lead to delays,
                                           consolidation centres, rail infrastructure   inefficiencies and waste in the movement
                                           and cross docking stations.       of produce to export markets. Airports
                                             While laying out the ideal logistics   need to be configured to capture more
                                           plan for African perishables, he said, “The   agricultural produce movement, with
                                           farms want the reefer to be loaded at the   additional cold rooms, agricultural
                                           farm gate, which is not a cheap solution   aggregation points, etc, on site,” he added.
                                           from a logistics perspective. Because they   He also pointed out the absence of
                Large growers              normally need to be trucked in and truck   adequate storage is one of the leading causes
                can easily fill up a       out. If there is a railway, there should be   of post-harvest losses. “Existing storage
                container, but this is     a consolidation centre where all the fruits   capacity is not up to required standards,
                                                                             causing moisture content issues, aflatoxin
                                           and vegetables from the region can be
                almost impossible for      refrigerated until loaded on the reefer   issues, pest infestation and theft,” he said.
                smallholder farmers.       container, which then will be put on the   As Kenya strives to meet global
                There is a need            train to the port. But some countries   demand for its flowers, the current
                                           don't have railways. Some countries have
                                                                             logistics challenges underscore the fragility
                for consolidated           production centres of different types of   of its export infrastructure. Experts
                shipment and               goods in different areas, which means   emphasise the need for capacity building,
                this increases the         that you have to multiply the number of   infrastructure upgrades, and hybrid
                                           consolidation centres.”
                                                                             logistics models to ensure sustainability.
                complexity of quality        Some countries do have consolidation   With sea freight emerging as a long-term
                control.                   centres and railroads, but don't have the   alternative, stakeholders must act now to
                           GRIFFIN KAIGA   receiving capacity at the end of the railroad   transform this crisis into an opportunity
                                  COLEAD   at the port. And that's the case with   for resilience and growth in the African
                                           Djibouti, according to Visser.    perishables sector.

          NOVEMBER - DECEMBER 2024                                                                         LUA 9
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