Logistics Managers Index reveals economic slowdown in Ghana
Increasing warehousing and transportation capacity combined with decreasing prices in both metrics are driving an economic slowdown in Ghana.
The data are revealed in the Ghana Logistics Managers Index report for the second quarter of 2023, released by the Center for Applied Research and Innovation in Supply Chain – Africa (CARISCA).
The LMI is based on eight key components: inventory levels, inventory costs, warehousing capacity, warehousing utilization, warehousing prices, transportation capacity, transportation utilization and transportation prices.
The LMI for the second quarter (64.2) decreased by nearly three points from the first quarter’s 67.1. Any score above 50, however, indicates that logistics activities are expanding. A reading below 50 would reflect a contraction.
“The Ghana LMI is still in growth mode,” said Emmanuel Quansah, co-author of the LMI report. “Nevertheless, growth is at a decreasing rate, with the current economic situation in the country not stable enough to generate increasing growth and optimism among industry players.”
CARISCA plans to replicate the tool in other African countries, beginning with Kenya in 2024. The researchers are looking for partners to help expand the LMI across the continent.
CARISCA is a partnership between Kwame Nkrumah University of Science and Technology and Arizona State University, with support from the United States Agency for International Development.
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