Reshaping Africa’s logistics landscape
Africa's poor logistics have been identified as a major achilles heel in the world's second largest continent. For a look on what's being done and an update on trade trends since the launch of the Africa Continental Free Trade Area, CNBC Africa is joined by Amadou Diallo, CEO, DHL Global Forwarding MEA.
Fri, 24 May 2024 11:29:27 GMT
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AI Generated Summary
- Leveraging technology to overcome logistics bottlenecks and streamline operations in key regions across Africa.
- Government involvement and collaboration with the private sector are pivotal in driving positive change and enhancing trade facilitation.
- The African Continental Free Trade Area (AfCFTA) is catalyzing growth in trade activities, with a significant surge in trade volumes observed in sub-Saharan Africa.
Africa's logistics landscape has long been plagued by challenges, but a shift in perspective is unlocking new opportunities for growth and development across the continent. In a recent interview with CNBC Africa, Amadou Diallo, CEO of DHL Global Forwarding for the Middle East and Africa region, shared insights on the regions witnessing significant logistics bottlenecks and the innovative solutions being implemented to address them.
Diallo highlighted key regions such as Kenya, Addis Ababa, Southern Africa, Angola, Nigeria, and upcoming discussions in Morocco as focal points for logistics transformation. Emphasizing a shift towards viewing challenges as opportunities, Diallo underscored the importance of leveraging technology to streamline processes and enhance connectivity.
One major bottleneck that has been addressed is customs processes, with the integration of technology to facilitate smoother operations. Initiatives such as the joint venture with Ethiopian Airlines have created tech hubs to expedite the movement of goods within the continent, reducing carbon emissions and improving response times for customers.
Furthermore, Diallo emphasized the role of governments in driving change and fostering collaboration with the private sector. Partnerships with organizations like the United Nations Industrial Development Organization (UNIDO) have facilitated discussions with governments in Kenya, Egypt, Ghana, Madagascar, and Angola to enhance data connectivity and automate customs procedures for improved transparency and efficiency.
The implementation of a cargo-wide system has empowered customers and investors to have a standardized experience across different markets, fostering a conducive environment for trade and investment in Africa. Diallo commended the progressive mindset of government officials towards embracing technology and innovation to enhance logistics operations.
With the launch of the African Continental Free Trade Area (AfCFTA), Diallo highlighted a surge in trade activities, particularly in sub-Saharan Africa. The region has witnessed a high double-digit growth in trade volumes, driven by increased engagement with small and medium enterprises (SMEs) seeking opportunities for expansion and market access.
To address challenges at border posts, initiatives like the refurbishment of Bytebridge and Namanga border posts have shown promising results. Leveraging technology and talent retention strategies, such as the 'great place to work' certification, are key aspects in enhancing operational efficiency and fostering sustainable trade practices.
In conclusion, Diallo emphasized the critical role of talent development, technology integration, and collaborative efforts between governments and the private sector in reshaping Africa's logistics landscape. By embracing a proactive approach and viewing challenges as opportunities for growth, the continent is poised to unlock its full potential and drive sustainable development across all sectors of the economy.