Africa's booming demand for goods and services is opening up significant opportunities within the logistics sector. However, the real challenge lies in efficiently transporting these goods across vast and often challenging terrain."If we can establish a stable transportation system within Africa, and create corridors that link and connect all African countries, we could significantly improve the logistics economy," said Ilunga Mukendi, a logistics consultant at Mikhanyi Logistics. He emphasised that the key to unlocking Africa's logistics potential lay in developing robust infrastructure and interconnected transport networks.Mukendi pointed out that Africa faced significant challenges that must be addressed to enhance efficiency and reduce costs in the sector. “One of the biggest challenges is the inefficiency at borders. Trucks often sit idle for weeks at various crossings due to the lack of systematic transit structures, leading to extended delivery times and increased transport costs,” he said. He also highlighted the high costs associated with security, insurance, and goods-in-transit cover. The frequent incidents of burning, hijacking, and theft of goods in transit have driven insurance companies to either refuse coverage for certain routes or hike premiums significantly.Another hurdle is the lack of harmonisation in regulations across the continent. “For example, in the SADC region, there are no coherent regulations regarding permits and documentation. It’s much easier for transporters in the European Union to move goods with a single community licence than it is to do the same within SADC,” Mukendi explained.Despite these challenges, he remains optimistic about the future of logistics in Africa. "The focus on technology as a tool for improving efficiency is increasing," he said. He likened the situation to Yahoo's decision not to buy Google for $1 million in 1998, a decision now considered a monumental oversight given Google's current worth of over $2 trillion. "It's not strategic to assume logistics will be business as usual."He stressed that employing technologically minded individuals and creating systems and processes that foster innovation and the effective application of technology are essential for the sustainability of companies in the transport and logistics sector. "Advancing South Africa's and Africa's logistics must be a priority," Mukendi added. "Technology is a constant driver of economic and industrial evolution, and the international logistics sector is continuously leveraging technology to improve transportation. In some countries, drones are now being used in mines to transport various commodities and equipment, significantly reducing transportation time."While Africa still relies heavily on traditional transportation methods, Mukendi believes that as technology advances and more international companies invest in the continent, there will be a steady shift toward using technological innovations to improve the transportation system.
