ONE OF the main constraints to growth in Africa is higher logistics costs, according to the latest World Bank Africa Development Indicators 2007 (ADI). An example, it says, is higher indirect costs of exporting in Africa (18-35 % of total costs) compared to indirect costs in China – a “mere” 8% of total costs. As a result, while efficient African enterprises can compete in terms of factory floor costs, they become less competitive due to higher indirect business costs.
