Own offices address Africa’s infrastructure challenge

ALAN PEAT
LOGISTICS IS a vital lifeline for trade and, in turn, for sustainable economic growth, according to Ruth Crichton, research analyst at Manica Africa.
“However, logistics in the sub-Saharan region is dependent on the state of its infrastructural capacity,” she told FTW, “and the customs bureaucracies of the various countries.”
In the last five years, many of the southern African countries’ economies have seen a downturn as they have faced political instability in the form of civil wars and poor investor perceptions - and their infrastructural capacities have been allowed to degenerate.
Crichton identifies the diminishing infrastructural assets of the various countries as a further logistics challenge. “As one moves further north,” she said, “the infrastructure becomes more “war” torn. They improve through Zambia, only to disappear into nothing in the DRC.”
This means that in southern Africa providing logistics solutions means more than merely offering a service from A-to-B.
Successful solutions, commercial executive Richard Tiddy added, require experience in, and knowledge of, the region.
And, he told FTW, Manica has addressed this lack of regional infrastructure by creating its own - with offices at every border post and offices and warehouses in every major centre.
With the regional need to boost trade and economic growth, it is vital that customs and logistics providers work hand in hand understanding the investors’ needs.
“Fesarta and the various customs authorities are attempting to introduce harmonisation in customs procedures to facilitate trade and logistics in the region,” said Crichton. “A further dynamic will need to be addressed during implementation of this initiative, as revenue streams will become transparent and similar in all countries.”
Also, corruption is a troubling feature of business operations in the region.
“The state structures are trying to manage this,” said Tiddy, “but such practices are becoming endemic.
“All major logistics players, including Manica, are attempting to address this issue and to foster greater transparency.