Logistics Challenges in Sub-Saharan Africa and Opportunities for Digitalization

Abstract

Improvements in logistics performance are considered to be a significant driver of economic growth. Digitalization in logistics, which includes enhanced tracking systems, digitized flows of information, artificial intelligence and automation, has further enabled globalized trade. However, Sub-Saharan African (SSA) economies, majorly export-commodity-dependent, still lag behind, grappling with inadequate policy frameworks, huge infrastructure deficits and trade barriers which result in a broken supply chain that negatively impacts growth. This study aims to investigate existing challenges in Sub-Saharan Africa, the potentials for the region to leapfrog traditional supply chain practices and adopt digital technologies, by evaluating previous findings in a systematic manner and augmenting these findings through semi-structured interviews. Systematic literature analysis conducted on published academic literature within a specific period and based on predefined criteria resulted in 287 articles being used for the final analysis. The most common logistics challenges and potential solutions have been identified. Semi-structured interviews with logistics service providers in the region have been conducted to establish the findings highlighted in the systematic literature review. The interviews showed that human capital training is a major factor when adopting digital technologies, and a focus on infrastructure investments, regulatory and institutional framework improvements will boost economic growth in Sub-Saharan Africa.

Logistics performance system and their impact on economic corridors: a developing economy perspective

“…Financial constraint is also a challenge for Pakistan to carry out the CPEC project efficiently, and there is a possibility of going into a debt trap for Pakistan in the long run (Ali, 2020). Financial investment is also a challenge faced by the Sub-Saharan Africa's logistics industry (Kuteyi and Winkler, 2022). While these observations are important and impact the logistics industry, this research study aims to assess the impact of logistics performance systems based on the six categories of LPI, as discussed in section 2.…”

“…Logistics performance is measured as accomplishing logistic activities objectives (Bakar and Jaafar, 2016). The crucial elements to achieve logistic performance are efficiency, effectiveness and differentiation (Kuteyi and Winkler, 2022) and productivity enhancement of raw materials and finished goods supply chain (Tang and Abosedra, 2019). In the era of the “new normal” (Demir et al ., 2022; Perkumiene et al ., 2021), logistic systems using blockchain and big data (Silva et al ., 2021.…”

Digital technologies as a tool of efficient logistics

“…A study by scientists (Kuteyi D. et al, 2022) is worthy of attention, where it is proven that increasing the productivity of logistics is considered a significant driver of economic growth. We share the opinion of the authors that digitization in logistics promotes global trade and includes improved tracking systems, digitized information flows, artificial intelligence and automation.…”

Autonomous Vehicles: Theoretical and Practical Challenges for Efficient and Inclusive Transport in Africa

“…Logistic performance as a strategic factor for indicating the competitiveness of economies was widely explored in [18]. Artificial intelligence and other related smart technologies, such as autonomous vehicles have a big role to play in achieving any economic competitiveness.…”