AFC Report Highlights Inefficiencies in Africa’s Logistics Despite Port Investments

AFC Report Highlights Inefficiencies in Africa’s Logistics Despite Port Investments

A new report from the Africa Finance Corporation (AFC) raises concerns that significant investments in ports across the continent have not translated into improved inland logistics and supply chains.

Since 2005, African ports have attracted an estimated $15 billion in investments, enabling upgrades and modernization to accommodate larger vessels and increased cargo volumes.

Data from the African Development Bank reveals that container traffic through African ports surged nearly 50%, rising from 24.5 million to 35.8 million units between 2011 and 2021.

However, AFC’s 2024 report, titled “State of Africa’s Infrastructure,” emphasizes that this increase in port capacity has not resulted in an efficient logistical supply chain across the continent.

Researchers highlight that many African governments have overlooked the quality and distribution of road and railway networks, rendering them underused and inadequate for trade and industry needs.

Poorly maintained road corridors, particularly in inland areas away from coastal ports, pose challenges for transport, often resulting in trucks spending over ten days navigating through three landlocked countries.

Jonas Aryee, head of Maritime Economics and International Trade Modules at Plymouth University in England, noted to VOA News that human factors further complicate logistics across Africa.

“Some countries are still not opening up and are protecting their local industries from competition with neighboring countries,” he explained.

“Numerous roadblocks—set up by police, customs, and gendarmes—are common in many countries, significantly increasing the cost of doing business in Africa.”

The AFC report also highlights that Africa has 680,000 kilometers of paved roads, which is only 10% of the total in India, a country with a similar population but just a tenth of the land area.

Looking ahead, the report forecasts continued investments in ports, with several new terminals planned for development in Angola, Benin, Cameroon, the Democratic Republic of Congo, Ghana, and Ivory Coast.

Experts advocate for a collaborative approach among countries to invest in, build, and manage highways to enhance the free flow of goods and people across the continent.