Page 30 - Abyssinia Business Network ABN August 2019

Logistics has made. Nevertheless, there are also required to keep in constant contact
still exist formidable challenges with clients when delivering products, to
challenges especially in logistics, a vital receive further directions while en-route.
constituent of the industry.
While generally Africa’s infrastructure lags
facing The African Development behind that of its counterparts including

eCommerce Bank, in its 2019 African America and Europe, it is worth of note that
Economic Outlook, notes that each country has its own value proposition.
“trade costs due to poorly In 2018, the World Bank’s Logistics
in Africa functioning logistics markets Performance Index placed South Africa,
may be a greater barrier to Kenya, Rwanda, and Côte d’Ivoire as the top
trade than tariffs and nontariff 4 best performing countries in Africa, while
barriers”. This side of the story Somalia, Sierra Leone, Eritrea and Zimbabwe
must also be told; if we are to were at the bottom 4.
by Josephine Wawira find sustainable solutions to
In most African countries, the result of the
poor road infrastructure is heavy traffic jams
that lead to delayed deliveries, canceled
orders for the on-demand services and
subsequently loss of revenue. Alternative
modes of transport have therefore come into
play in some markets like Kenya and Nigeria,
with the use of easy to navigate motorcycles,
popularly known as Bodabodas. With about
1.2 million motorcycles in the passenger
transport business, Kenyan ecommerce
companies have strived to tap into this
market by using Bodabodas to swiftly deliver
getting Image products especially within busy cities.

According to Euromonitor, what could be the gateway to “There are huge opportunities for logistics
the world’s fastest growing growing Africa’s e-commerce to grow e-commerce, but few established
economies by 2030 will be by leaps and bounds. players exist in the market,” notes Apoorva
in Africa. This consequently Kumar, Jumia’s SVP of Logistics. Present
makes the continent the next big Unsatisfactory National in 14 African countries,Jumia is one of the
e-commerce market. And as this Address Systems and ecommerce players building logistics and
positive narrative continues to Transport Infrastructure fulfilment infrastructures to ease delivery of
place Africa as a top investment One of the biggest logistics’ products to consumers using both vehicles
destination, the need for hurdles holding back the and bodabodas.
advanced logistics systems has industry is the lack of proper In Rwanda, companies like Zipline are leading
become inevitable. The growth national address systems in the way in commercial drone deliveries.
of e-commerce will significantly most African countries. This, While initially focused on delivering blood
depend on the quality and coupled by poor road networks, to remote health centers that are otherwise
efficiency of logistics networks; make it even harder to difficult to reach fast due to Rwanda’s hilly
from intra and cross trade to conveniently deliver products terrain; it is expected that Zipline’s drones will
financial transactions in payment to customers. Consequently, in future be used in other sectors including
of goods and services. companies have had to rely e-commerce. Back in Kenya, Astral Aerial
on fairly descriptive addresses Solutions is using drones for among other
When writing the African and landmarks provided by the services, last mile deliveries. The company
e-commerce story, I often leap customers during the initial aims to, in its words, “open up Kenya’s hard
at the chance to explore only the stages of the online purchase to reach regions to new and exciting business
enviable milestones the continent process. The delivery persons opportunities”.
28 Abyssinia Business Nework ነሃሴ 2011 / August 2019