Page 14 - LUA May - June 2023 for Magzter

SPOTLIGHT

Sustainability can help to improve access
to goods and services in underserved
areas, support economic development,
and enhance social well-being.
Abdesslam Benzitouni, Group Head
of Communication & Public Relations at
Jumia told the publication, “Some of the
top trends driving sustainable logistics in
Africa include the adoption of alternative
fuels and energy-efficient technologies, the
development of multimodal transportation
systems, the use of data analytics and
artificial intelligence to optimise logistics
operations, and the implementation
of circular economy models that
promote resource recovery and waste
reduction. Additionally, there is an
increasing emphasis on collaboration and
partnerships among logistics stakeholders,
including governments, businesses, and
communities, to promote sustainability
and reduce the environmental impact of
logistics activities.”

DIGITALISATION - A KEY
GROWTH DRIVER FOR
AFRICAN LOGISTICS
It is well known that the relative cost
of moving goods in Africa is among
the highest in the world, with up to
75% of product costs going to logistics
(compared to say 6% in the US). However,
digitisation brings ease of booking freight,
e-documentation, shipment tracking, and of the fragmented nature of logistics and was announced in October 2021 and
online payments and allows companies to supply chains in Africa. is targeted at the continent's early and
optimise their systems and lead times and In this ecosystem, a new wave of growth-stage startups.
serve their customer better. e-logistics start-ups in African nations Lori Systems CEO Uche Ogboi told a
Digitalisation has been making is changing the game when it comes technology publication that technology
significant inroads into Africa be it in to plugging the gaps existing in the has a crucial role to play in solving Africa’s
minimising physical documentation traditional African logistics ecosystem logistics woes: “Innovation, and the
through digitisation of systems or across road, sea, and air freight modes ability to scale it, is the key to unlocking
using AI in improving the efficiency through digitalisation. the region’s potential. Data visibility,
of supply chains for prediction, route Nigerian tech-enabled logistics interactive software, IoT (internet of
planning, and managing warehouses company Kobo360 has come up with things) devices, all these inventions will
and combining it with transportation an app that matches truck owners play a part in bringing the African supply
and fleet management, or using cloud and drivers looking for customers or chain into the 21st century.”
technology or using the Internet of companies whose cargo needs to be Last year saw Senegalese start-up Yobante
Things to track temperature and track moved and it also helps drivers limit Express which is an online marketplace that
shipments in transit. “empty runs”. connects local couriers with local commerce
Further technologies like Blockchain Similarly, Google has invested to optimise domestic, cross-border, and
can enable business transactions, make in Nairobi-based Lori Systems, an last-mile delivery, ink an MoU with Kenyan
use of smart contracts and automate e-logistics company that digitises company MPost, an innovative start-up
many business processes in a safe manner. haulage and provides shippers with that converts mobile phones into postal
A large share of logistics services solutions to efficiently manage cargo addresses. With MPost, Yobante Express can
across the African continent leverage and transporters. This new investment simplify addresses allowing both entities to
informal suppliers and networks. is the third from Google's Africa enter a larger African market at scale and
Trucking inefficiencies also form a part Investment Fund worth $50 million that deliver parcels efficiently in the last mile.

12 LUA MAY - JUNE 2023