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Putting innovation in African logistics at the centre of regional economic growth

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Monday, 30 November 2015

Putting innovation in African logistics at the centre of regional economic growth

During recent years, the African story has been built around oil, mining and the sale of commodities; as well as foreign direct investment from global businesses, institutional and sovereign investors. Underpinning this has been a hidden but growing logistics sector, forming the backbone for industrial development and becoming a fast-growing industry in itself. Economic growth in sub-Saharan Africa has been driving the demand for world-class transportation and logistics, which is fundamental to the success of businesses, particularly for African entrepreneurs and innovators seeking to ship products and expand their regional footprint. Conversely, the problems that are created by sub-standard logistics present innovators with additional business opportunities. In short, logistics are critical to economic success and a driver of innovation and enterprise. The scale of opportunity for entrepreneurs is perhaps best understood by looking at some of the challenges created by a weak logistics infrastructure. Drone delivery can be a possible game changer in a challenging continent like Africa, especially in key sectors such as healthcare and agriculture. Drones are a truly interesting pieces of technology that are able to navigate current logistical challenges more efficiently, swiftly and cheaply provided that African governments can develop a proper regulatory framework to enable such innovation.

Source: Ventures Africa