Logistics and supply chain infrastructure development impact on Africa

The difficulty of transferring commodities throughout Africa is not new to the continent. It is currently a key impediment to the AfCFTA's prospects, especially in building regional industrial supply chain clusters. Africa's massive infrastructure deficit has hindered regional trade and economic integration for decades, notably in transportation and supply chain fragmentation.

Some parts of the continent, specifically areas surrounding East African nations, do far better in cross-border movement and trade. However, most African countries fare poorly on metrics such as cross-border clearance processes. According to the World Bank's Logistics Performance Index, the regions also struggle with trade quality, infrastructure, inconsistent tax regimes, and consignment trace and track techniques.

Digitalisation in Africa's logistics industry will address some of these difficulties. Furthermore, the development of digital logistics startups has aided in the facilitation of connection, which is critical to the movement of commodities within the area and across borders.