Several African start-ups have launched platforms connecting freight carriers and customers, creating opportunities, but despite these initiatives, many challenges remain in the logistics sector.
The development of technology in Africa has affected all sectors, including transport and logistics. Several entrepreneurs have used digital technology to better offer their services to transporters, manufacturers and distributors.
These initiatives, although they improve access to information and reduce operating costs, are not enough to develop logistics on the continent.
Bifasor, a company based in Côte d'Ivoire, uses a mobile application to connect different professionals in the supply chain (carriers, freight forwarders, mechanics, etc.) with customers. The business model of the company co-founded by Zakaria Daboné, is based on the collection of commissions when paying invoices.
In Nigeria, the company Kobo360, offers goods delivery services from their arrival at a port or airport to the customer. Founded by Nigerians Obi Ozor and Ife Oyedele, the start-up works with approximately 50 drivers who deliver to more than 000 customers in the most populated countries of West Africa.
Amitruck, founded by Kenyan entrepreneur Mark Mwangi, also connects companies or individuals with truck owners to transport goods, and works with more than 6 truckers.
The developer claims that drivers are vetted, goods are insured before and during delivery. Also, in case of mechanical problems, replacement vehicles are available to avoid delays in deliveries.
These various projects have helped to circumvent the difficulty of launching large logistics companies in Africa. Since all the equipment is imported as well as the spare parts, it would take a lot of resources to set up such an entity.
Also, demand is not always harmonious. Countries like Morocco, Egypt, South Africa, Ghana or Kenya generate large internal demands, while in other countries the markets are fragmented and not always constant.
However, despite the solutions offered by start-ups, challenges remain. These include the lack of efficient infrastructure, the difficulty in finding spare parts and equipment for repairing broken-down trucks.
Also, even for companies that set up voluntary carrier networks, access to financing remains difficult.
According to data collected by the platform Digest Africa, the share of financing raised by logistics start-ups remains quite modest compared to that of other sectors such as payment services.
Ecofin Agency
