Transforming Logistics in Africa

Crystal Orderson highlights how investing in logistics can improve Africa’s economy with the help of investment.

Following the African Continental Free Trade Area (AfCFTA) agreement, which promises to bring a more prosperous economy throughout the continent, transport and logistics companies have begun to optimize their operations.

By creating a more efficient free flow of goods across borders, the logistics sector can help unlock the true potential of AfCFTA.

To discuss the importance of this sector, Bongani Bingwa spoke to Crystal Orderson, a seasoned journalist specializing in African content. This forms part of the new Africa Focus series presented by RMB. The weekly series aims to highlight Africa’s innovations and potential growth while answering key economic questions.

The AfCTA agreement intends to enhance trade integration and the movement of goods on the continent. Other objectives include:

• Encouraging industrial development through diversification, agricultural development, regional value chain development, and an improved level of food security.
• Promote the movement of capital and people while facilitating investment.
• Create sustainable and inclusive socioeconomic development.

The free trade area is predicted to provide a market of over 1 billion people with a GDP of over US$2 trillion once completed.

Orderson mentions that 38 of Africa’s 54 states have ports, resulting in a high percentage of the continent relying on transport and logistics when it comes to moving goods. Transportation refers to the physical movement of goods while logistics is the management of this process. The latter often deals with the storage, packaging, and other organizational details around transportation. Both are vital for trade success and ports are the access points that connect the continent.

Tema Port, the largest port in Ghana received a $122-million term loan facility with the help of Rand Merchant Bank. The financial service provider has, on behalf of Ghana Ports and Harbours Authority, arranged and funded the design and turn-key construction of a bulk unloading jetty at Tema Port in Ghana. The new jetty will facilitate increased production of shipping vessels and enhance Tema Port’s position as the gateway to Ghana.