The Africa Logistics

Africa Logistics

NOVEMBER 2023

The

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FUEL MANAGEMENT IN FLEET Internet of Things(IoT) and telematics can help fleet managers cope with volatile fuel prices. Aliaksandr Kuushnau, Head of Wialon, Gurtam gives insight

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EDITORIAL

Sub-Saharan Africa’s debt must be addressed African countries must expand and diversify their participation in international trade and global value chains to reduce poverty on a large scale and transform their economies, says a new World Bank book released today.

The continent must go beyond trade in raw materials and link its production and trade to the global economy to take advantage of the unlimited demand and innovation along the supply chain. This requires comprehensive and dynamic efforts that bolster Africa’s export market access and diversifies its markets to new regions and new products while also strengthening regional trade. unilateral trade preferences have the potential to promote economic transformation through exports and calls for evaluating and re-engineering trade with traditional partners. Utilization rates of many African countries for the existing trade preferences -such as African Growth and Opportunity Act (AGOA) and Everything But Arms (EBA) are systematically low. Evidence on AGOA shows that natural resources, mainly oil, account for the bulk of African exports. There is a need to integrate unilateral trade preferences with other efforts to deepen trade and investment between Sub-Saharan African (SSA) countries and the OECD countries, mainly the US and the EU, the book emphasized. This includes integrating preferences with foreign aid policy instruments to address structural challenges limiting export capacity. Recent initiatives such as Compact with Africa (CwA) with a strong focus on improving the business environment, building infrastructure, and promoting effective regulations a nd institutions appear to be in line with this comprehensive approach.

The rapidly growing middle class and demand from East Asia, accompanied by rising relative wages, along with the shifting structure of global value chains, offer new market opportunities for Sub-Saharan African countries to strategically diversify trade with Asia. Over the past decades, trade relationships between Sub-Saharan Africa and Asia have expanded, and for some SSA countries their key trading partners are increasingly becoming China, India, and Indonesia, replacing EU, US, especially after 2010.

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inside ...

COVER STORY REPORT

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6 FLEET FUEL

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NEWS & FEATURES 39. Airlink bolsters presence in Botswana & Zambia to meet market growth 21. World travel awards 29. Slight economic slowdown for Ghana from boisterous start in 2023 26. NEARLY A THIRD OF PORTS WORLDWIDE “UNPREPARED” TO ADOPT IMO’S MARITIME SINGLE WINDOW MANDATE 23. Africa Finance Corporation exits stake in Ghana’s Takoradi Port to Yilport Holding 25. USING FACIAL RECOGNITION, SITA AND FRAPORT ENABLE A CONTACTLESS TRAVEL EXPERIENCE FOR ALL AIRLINE PASSENGERS

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The Africa Logistics

FEATURE

27

AGOA vital to sustainable growth, job creation and industrialisation

Africa Finance Corporation exits stake in Ghana’s Takoradi Port to Yilport Holding

20

Air transport industry turns to digitalization to boost baggage management

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24 Maersk unveils technologydriven warehouse in Cameroon

32 The Role of Supply Chain in Knowledge Transfer: A Case Study of South African Automotive Industry www.theafricalogistics.com

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AVIATION

Airlink bolsters presence in Botswana & Zambia to meet market growth

A

irlink, the independent premier Southern African regional airline, has established country offices in Gaborone and Lusaka to enhance customer services in Botswana and Zambia.

The new country offices in the two capitals officially opened for business today.

They provide direct customer and local travel industry support with flight reservations, ticketing, and special services assistance, and are located to provide easy access to customers.

“Botswana and Zambia are both important and vibrant markets for Airlink, which provides crucial connectivity for people travelling for business and leisure. As international long-haul tourism recovers, we are

The Africa Logistics

also seeing strong demand for travel on our services to Maun, the Okavango Delta and Livingstone (on the Zambian side of Victoria Falls). Business travel is also picking up with increased trade and other commercial activity in those markets. Our new Gaborone and Lusaka city offices will enable us to have closer, more direct contact with our customers and the trade as these markets continue to grow. We have deliberately located the offices for maximum customer convenience, saving them the time, trouble and expense of having to go to the ticketing offices at those cities’ airports.,” said Airlink CEO and Managing Director, Rodger Foster.

The Lusaka office is staffed by a team of three personnel while the Gaborone team comprises two staff and Airlink’s country manager.

Airlink operates up to 40 return flights a week to Lusaka, Livingstone and Ndola in Zambia and up to 50 return flights a week to Gaborone, Maun and Kasane in Botswana.

Airlink’s new offices are located at the below addresses: Gaborone: The Office, Unit 37, Plot 64517 Fairground Park, Gaborone Tel +267 389 0337 Lusaka: Agora Village, Retail Store unit 9B, Plot nr 8121, Thabo Mbeki Road, Lusaka Tel +260765 6556 59

TRAVEL

World Travel Awards Africa & Indian Ocean 2023 winners revealed

T

he very best travel, tourism and hospitality brands in Africa and the Indian Ocean in 2023 have been unveiled by World Travel Awards.

Big winners at the red carpet World Travel Awards (WTA) Africa & Indian Ocean Gala Ceremony 2023 included the paradise nation of the Maldives, emerging as winner of ‘Indian Ocean’s Leading Destination’ as well as ‘Indian Ocean’s Leading Tourist Board’.

Kenya was named ‘Africa’s Leading Destination’. The thriving South African hub Durban took the coveted title of ‘Africa’s Leading Meetings & Conference Destination’.

The gala WTA reception was held at Dubai’s new landmark resort, Atlantis Royal, with tourism royalty travelling from across Africa and the Indian Ocean to find out which organisations had won the coveted titles.

Cape Town collected the honour of ‘Africa’s Leading City Destination’, and Tanzania’s Ngorongoro Conservation Area won ‘Africa’s Leading Tourist Attraction’. ‘Indian Ocean’s Leading Wedding Destination’ went to Mauritius, while ‘Indian Ocean’s Leading Honeymoon Destination’ was claimed by Seychelles. Fairmont Mount Kenya Safari Club was voted ‘Africa’s Leading Hotel’.

Graham Cooke, Founder, WTA, says: “It has been a privilege to welcome our winners from across Africa and the Indian Ocean for our 30th anniversary celebrations in Dubai.

The incredible evening will live long in everyone’s memory. Our winners represent stellar examples of tourism excellence, and I congratulate each and every one for helping to raise the collective benchmark to even greater heights”.

In the aviation sector, big winners included Ethiopian Airlines with the titles of ‘Africa’s Leading Airline’ and ‘Africa’s Leading Airline - Business Class’. Kenya Airways was voted ‘Africa’s Leading Airline - Economy Class’. Air Mauritius claimed ‘Indian Ocean’s Leading Airline’ and Trans Maldivian Airways was named ‘Indian Ocean’s Leading Seaplane Operator’.

In the newcomer categories, Morocco’s Fairmont Taghazout Bay was named ‘Africa’s Leading New Hotel’ and Emerald Zanzibar Resort & Spa hailed. ‘Africa’s Leading New Resort’. Emerald Faarufushi Resort & Spa, Maldives was voted Indian Ocean’s Leading New Resort’. Travel provider winners included Get Into Maldives Travels (‘Indian Ocean’s Leading Luxury Tour Operator’). www.theafricalogistics.com

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REPORT

I

ncreasing warehousing and transportation capacity combined with decreasing prices in both metrics are driving an economic slowdown in Ghana.

The data are revealed in the Ghana Logistics Managers Index report for the second quarter 2023, which the Center for Applied Research and Innovation in Supply Chain – Africa (CARISCA) released.

The LMI measures the growth or decline of Ghana’s logistics industry, giving managers, policy makers and analysts a reliable data tool for evidence-based decision making. The LMI is based on eight key components: inventory levels, inventory costs, warehousing capacity, warehousing utilization, warehousing prices, transportation capacity, transportation utilization and transportation prices.

The LMI for the second quarter (64.2) decreased by nearly three points from the first quarter’s 67.1. Any score above 50, however, indicates that logistics activities are expanding. A reading below 50 would reflect a contraction.

“The Ghana LMI is still in growth mode,” said Emmanuel Quansah, co-author of the LMI report. “Nevertheless, growth is at a decreasing rate, with the current economic situation in the country not stable enough to generate increasing growth and optimism among industry players.”

Inflation has begun an upward trend, Quansah noted, and the appreciation of the cedi against the dollar in the first quarter has been lost, with the dollar gaining against the cedi.

The LMI summarizes the survey responses of supply chain and operations managers from multiple industries in Ghana. Researchers collected data for the second quarter report from April to June 2023 from 424 respondents.

In addition to being asked about current logistics activities, respondents are asked to predict movement in the LMI over the next 12 months. For the first time, respondents have predicted a future LMI (64.5) that is almost the same as the current score.

They are slightly less optimistic than in the first quarter, when they predicted the LMI would rise to 69.3.

“This forecast paints a picture of mixed optimism in the market due to the country’s current macroeconomic state,” said The Africa Logistics

Slight economic for Ghana from start in 2023

Quansah. “The hopes of a quick turnaround in the Ghanaian economy after the country secured the $3 billion IMF credit facility early this year remains to be seen in the marketplace.”

The predictive nature of the LMI is clearly

c slowdown boisterous

seen in the second-quarter results, Quansah added. Even though the LMI measures changes in logistics activities, it is highly reflective of the economy as a whole.

The calculated LMI for Ghana, along with the analysis of its components, is intended

to provide useful insights for the government of Ghana, business decision-makers, market analysts and investors. The tool is the first of its kind in Africa. The Ghana LMI is based on the U.S. LMI, which was created in 2016 by a team led by CARISCA Exwww.theafricalogistics.com

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REPORT

ecutive Director Dale Rogers.

“The Ghana LMI helps us with our current strategy to achieve our KPIs,” said Thomas Yeboah, logistics manager for the World Food Program in Ghana and an LMI respondent. “The trends and projections from the LMI guide the alignment of our logistics plans.”

In addition to a detailed overview of the survey findings, each Ghana LMI report includes observations from the researchers, predictions and charts and tables that display the data at a glance. It also includes an electronic payment systems index (EPI).

This index gauges the views of respondents on the usage of electronic payment systems when transacting business with suppliers and customers.

Electronic payment systems reduce processing times and errors, and they improve convenience, tracking, transparency, efficiency and security. The EPI for the second quarter of 2023 registered a value of 72.9.

This score is an increase of 5.9 points from last quarter.

The Africa Logistics

“

Growth is at a decreasing rate, with the current economic situation in the country not stable enough to generate increasing growth and optimism among industry players.”

“

The calculated LMI for Ghana, along with the analysis of its components, is intended to provide useful insights for the government of Ghana, business decisionmakers, market analysts and investors.”

The Q2 2023 report, the sixth LMI report to date, offers several new features.

These include: more detailed perspectives on each of the three primary components studied (inventory, warehousing and transportation); a comparison of manufacturing vs. service sector activities; and quotes from respondents on challenges they face and the value of the LMI. CARISCA plans to replicate the tool in other African countries, beginning with Kenya in 2024. The researchers are looking for partners to help expand the LMI across the continent.

CARISCA is a partnership between Kwame Nkrumah University of Science and Technology and Arizona State University, with support from the United States Agency for International Development. The centre at KNUST aspires to become a globally recognized, locally owned hub for generating and translating innovative research into positive development outcomes for Ghana and pan-African supply chains, driving country self-reliance.

www.theafricalogistics.com

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REPORT

K

ale Logistics Solutions (Kale) has today published a readiness survey of 200 ports that revealed 30 percent are not prepared to adopt the International Maritime Organisation (IMO)’s Maritime Single Window (MSW) mandate, which becomes compulsory worldwide from 1st of January 2024.

Kale highlighted the urgency for the industry to speed up its digital transformation as it unveiled the survey results, which also cited high implementation costs, long timelines, and varying levels of digital readiness as leading factors hindering regulatory compliance.

The study involved ports located throughout the Asia Pacific, Middle East, Europe, Africa, North America, and South America, and emphasised that Port Community Systems embedded with an MSW are integral to achieving the true potential of a port.

“The purpose of this study was to identify The Africa Logistics

the tangible benefits the maritime industry can achieve with technology intervention, and the results showed potential savings of up to USD50 billion annually by using MSW platforms,” said Vineet Malhotra, Co-Founder and Director, Kale Logistics Solutions.

“However, these benefits are subject to 100 percent adoption of the MSW, and our report reveals that ports are encountering a number of barriers that hinder this digitalisation.

“The MSW concept has the potential to revolutionise the international shipping industry.”

MSW platforms bring major sustainability benefits by digitising documentation, streamlining processes, and improving information exchange, resulting in reduced paper usage and more efficient vessel management, ultimately lowering emissions and environmental impact.

On average 12 agencies collaborate on

NEARLY A THIRD OF PORTS WORLDWIDE “UNPREPARED” TO ADOPT IMO’S MARITIME SINGLE WINDOW MANDATE one ship-shore operation, and the MSW simplifies documentary procedures between all actors involved and ensures information only needs to be inputted once.

Kale’s MSW platform is compliant with IMO standards and enables information and documentation to be transferred electronically between maritime and port stakeholders, which will become a compulsory requirement from the start of 2024.

“The importance of this study will sow the seed for a digital revolution in the maritime industry worldwide, demonstrating how digitisation can not only bring order to the ongoing chaotic operations in the industry but also achieve significant sustainability goals in the long run,” added Malhotra.

The report was released by Shyam Jagannathan, Director General of Shipping, Ministry of Ports, Shipping and Waterways, Government of India, at the Global Maritime India Summit in Mumbai, India.

Kale highlighted the urgency for the industry to speed up its digital transformation as it unveiled the survey results, varying levels of digtory compliance. www.theafricalogistics.com

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Fuel management REPORT

The Africa Logistics

Wialon-Gurtam

MANAGING

FLEET FUEL

IoT and Telematics are key for African operators in a volatile fuel economy Now more than ever before, fuel management in fleets has become crucial. And especially in the wake of the rising cost of fuel, the importance of fuel monitoring can-

not be gainsaid. Aliaksandr Kuushynau, Head of Wialon, Gurtam explains how Internet of Things(IoT) and telematics can help fleet managers cope with volatile fuel prices. www.theafricalogistics.com

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Fuel Management

O

ver the last few years, we have witnessed unprecedented economic uncertainty and continued volatility in fuel prices across all

markets.

For fleet managers, fuel price and consumption continues to be a primary consideration in the design and operation of their vehicle fleets, determining vehicle type, route choice and a suite of other strategic decisions. Fuel tracking has consistently been one of the primary telematics use-cases, but it’s even more important now as fleet operators need to have complete visibility of their fuel costs and usage, and be able to optimise decision-making in very short spans of time. Added to that, the impact of global sustainability targets means that visibility and demonstrability of CO2 emissions of fleet operators has a significant bearing on who does business with them.

Wialon, the global fleet management platform developed by European software company Gurtam, works with over 2,500 fleet solutions and service providers, enabling the tracking and fleet management for over 3.7 million connected vehicles across 150+ countries. As such, we’ve seen first hand how operators across the globe are using technology to mitigate and respond to a volatile fuel economy. Interestingly, across the African continent, IoT and telematics implementations are being used in a number of different ways to not only manage fuel costs, but also to improve vehicle security and driver safety.

Wialon on the continent - a case study in controlling fuel theft For many years, Africa has been demonstrating a remarkable pace in adopting digital technologies and embracing innovation. In this evolving market, the integration of telematics and IoT is rapidly gaining momentum, serving as a vital lifeline for businesses of all sizes.

The Wialon partner network spans the entire continent of Africa, extending from Morocco, Algeria, and Libya to Côte d’Ivoire, Tanzania, Zambia, and beyond. Partners across the market have been delivering diverse Wialon-based projects, including cargo transportation tracking, fuel monitoring, driver safety management, or non-fleet use cases such as monitoring power generators, and other solutions specifically de-

signed to address the pressing needs and challenges relevant to local customers.

One such example is Tracking Africa, Wialon partner in South Africa, who used the Wialon software platform to build and deploy a fuel monitoring and fuel theft control system for its client Mahlubi Transport and Plant Hire. The company was facing serious challenges in its fleet operations: significant fuel theft (leading to $15,700 in losses every month), management unable to keep track of company activity on the go, construction materials theft on their working sites, and more.

To control this, all the vehicles were equipped with GPS trackers, cameras, radio frequency backup devices and fuel level sensors. Wialon processed all the data to present the fleet stats and fuel-related data to the customer and, through Wialon mobile app, enabled company management to access fuel monitoring and other GPS data at any time and place. The fuel monitoring system deployed for Mahlubi Transport and Plant Hire now helps save 4,500 litres of fuel every month.

The fuel efficient fleet of the future For connected fleets, fuel efficiency is easily tracked - Gurtam provides the means to achieve this, through its Wialon fleet management and GPS tracking software platform. Fuel efficiency tactics involve more than simply monitoring fuel consumption, and telematics solutions enable operators to enhance their efficiency gains by monitoring tyre pressure and driving behaviour too.

Keeping tyres properly inflated and vehicles in good condition supports peak fuel efficiency. By practising proactive fleet maintenance with automated reminders, operators are able to optimise for vehicle performance, safety and also fuel efficiency.

Mitigating unwanted driving behaviours too, like speeding, harsh braking and unnecessary idling is a key component of effective fuel management. Fleet management solutions built on the Wialon platform allow for live, in-vehicle alerts when drivers break pre-defined rules.

At Wialon, we have countless examples of fleet solutions providers using our platform to develop fleet management solutions for their clients, across various markets and sectors. In Rwanda for instance,

Wialon-Gurtam

Wialon partner Afritrack uses the platform to help 3RAG, one of the leading bulk fuel transporters in Rwanda, to increase fuel efficiency by measuring eco-driving behaviour metrics such as harsh acceleration, braking and sharp cornering.

In a different example and scenario, Afritrack also helped one of its largest clients with the monitoring and maintenance of diesel generators in remote areas of Tanzania.

IoT devices installed by our partner and monitored on Wialon eliminated the (very costly) need for in-person checks and surveys.

With Wialon’s reliable and wide-functionality IoT and telematics software platform, fleet solutions providers help businesses that operate fleets across the continent to manage fuel consumption and insulate themselves from fuel waste, fuel theft and volatile fuel prices.

Staying on course - connectivity and connected fleets in Africa As mobile connectivity and adoption rates increase across the various regions

of Africa, we’ll likely see enhanced capabilities and benefits that fleet management solutions will bring; in addition to fuel consumption monitoring, and security for drivers, vehicles or goods, wider and deeper integration of GPS tracking systems will unleash further benefits to drive efficiency in operations for African fleets. The Wialon platform is built both for the present, and for the future, with its ultimate reliability, functionality and innovation for fleet management software and solutions.

With Wialon’s reliable and wide-functionality IoT and telematics software platform, fleet solutions providers help businesses that operate fleets across the continent to manage fuel consumption and insulate themselves from fuel waste, fuel theft and volatile fuel prices.

www.theafricalogistics.com

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FUEL MANAGEMENT

Fleet and fuel management

A

vehicle’s safe and efficient use is directly related to how it is utilised by the driver, making a bespoke fleet and driver management app critical for the running of fleets in today’s environment. Ctrack’s fleet management systems comprise welldeveloped hardware and software solutions that have been refined over 35 years of continuous research and development.

Improving the driver behaviour of your employees can benefit your business through better kilometres per litre, lower fuel bills, enhanced driver safety and reduced accident rates, as well as less fleet admin and vehicle maintenance costs.

“Ctrack is able to equip customers with the tools to easily and efficiently monitor a variety of factors that have a direct impact on fuel consumption,” says Hein Jordt, Chief Executive Officer of Ctrack.

Ctrack allows for real-time monitoring of vehicles from any device with an internet connection, while the Crystal fleet management platform offers a powerful user experience that ensures an effective way for fleet managers to keep an eye on the daily movement of assets. Keeping an eye on drivers and vehicles in real-time allows fleet managers to react with appropriate measures immediately.

The Africa Logistics

Ctrack offers a variety of camera systems that can monitor all areas of a vehicle, including the road ahead, the driver, the cabin and the load area. Overlaid with data harvested from the vehicle CAN bus system, as well as accurate tracking data, ensures a clear picture of how the vehicle is being used every second of the day.

Ctrack can, through its non-intrusive CAN touch sensor, connect to the CAN Bus and read the vehicle’s CAN information. This gives access to real-time data, including speed, odometer, engine speed, fuel level, fuel consumption, engine load, throttle position and engine temperature.

“Many of these parameters directly affect fuel consumption, and the monitoring thereof is extremely valuable for driver training and evaluation,” adds Jordt.

One of the most significant contributors to inflated fuel usage is excessive speed.

Ctrack is able to monitor speed in various ways and is also able to implement speed limiters that can prevent drivers from speeding entirely or limiting speed according to pre-determined Geo Zones.

Adopting a smooth driving technique is the most economical way to drive, as is maintaining a constant speed on the open road and sticking to the speed limit. Through effective data harvesting, monitoring, and

reporting, drivers can be coached on various fuel-saving factors, such as avoiding speeding up between intersections, excessively revving a vehicle or unnecessary vehicle idling.

The Crystal mobile app gives managers, and drivers enhanced control of their daily activities via a single application that offers a myriad of functionality and allows for safe navigation and effective time management.

One of the best ways to save fuel is to drive less, which can be done by better route planning. While the time of day a vehicle travels might be unavoidable in many cases, planning routes to avoid rush hour will mean spending less time in traffic, shorter travelling time and less fuel used.

The Crystal mobile app includes a built-in navigation system that will ensure that vehicles always travel on the optimal route while incorporating multiple stops in the most efficient manner. Optimal route planning is possible thanks to the use of historical route data and constant adaption according to traffic data.

The Crystal mobile app also facilitates a daily pre-trip inspection, assisting companies to stay ahead of vehicle maintenance. For example, underinflated tyres are a massive contributor to unnecessary fuel consumption. Tyres should be checked regularly and inflated according to the man-

ufacturer’s specifications for the load being carried.

Fleet managers can support positive driving behaviour by monitoring driver skills, driver training and scoring models that result in a reduction of CPK cost. The driver app gives fleet managers enhanced communication with drivers through twoway messaging, job listing, navigation, as well as post-trip coaching, which can be shared with drivers to encourage efficient driving.

The app also allows drivers to manage themselves and see their own scores. Drivers who continually achieve good scores can be rewarded, and as such, a culture of good, efficient driving is fostered.

Vehicle maintenance can also have a substantial effect on fuel consumption.

Crystal’s improved asset control allows fleet managers to stay ahead of licensing, routine servicing, maintenance schedules, and vehicle usage, allowing for strategic planning around these needs to minimise downtime.

“Fleet management used to be a nice to have, but in today’s day and age, given the rising crime levels and ongoing fuel price increases, it is a critical tool for the effective running of fleets,” concludes Jordt.

www.theafricalogistics.com

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FEATURE

AfDB calls for increased Brazilian investme logistics

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n African Development Bank delegation to the 11th edition of the Brazil-Africa(link is external) Forum has stressed the need to strengthen collaboration with Brazil through the multi-partner Lusophone Compact, to attract more private capital and co-financing for private sector transactions.

The delegation from the continent’s premier multilateral development bank attended the forum, held in São Paulo, Brazil from October 31st to November 1st, under the theme Investment and Development: Brazil and Africa Engaging with the World.

The Lusophone Compact was launched in December 2018 as a cooperative platform for investment between the African Development Bank Group, Portugal, and The Africa Logistics

six African countries - Angola, Cabo Verde, Equatorial Guinea, Guinea Bissau, Mozambique, and Sao Tome e Principe, known as the PALOPS. Its objective is to attract substantial investment, design bespoke solutions for small island states and unlock private sector development and trade in, and among, the Lusophone nations.

Moono Mupotola, Chair of the Lusophone Compact Standing Committee who led the delegation, participated in a panel on market trends and opportunities between the two regions. “The Portuguese private sector should take advantage of the opportunities presented by the Africa Continental Free Trade Agreement and use the Lusophone Compact and Portuguese speaking countries as a gateway to the African market,”

ent in infrastructure and

she said.

During the two-day forum, the African Development Bank Group organized and moderated an investment roundtable that gathered 40 select investors. The session showcased three investment opportunities at bankability stage in the sectors of transport and renewable energy in Angola, Mozambique and Sao Tome and Principe. The projects are seeking over $200 million in debt and equity financing.

Nana Spio-Garbrah, Manager of the Client Solutions Division at the African Development Bank, participated in the panel titled, “PPPs and Investments in Infrastructure and Logistics Integration in the South Atlantic.” She emphasized the financial instruments including trade finance and political risk guarantees, available to mobilize

international investors into Africa given the preferred creditor treatment of the African Development Bank and its AAA rating.

“There is no longer any excuse for savvy investors to shy away from the continent.

The synergies between the two regions are undeniable and the returns of investing in manufacturing or infrastructure – whether aviation, ports, or railway – are attractive,” Spio Garbrah said.

Neima Ferreira, Chief Lusophone Compact Coordinator was a member of another panel session on “Women’s Economic Empowerment as a Driver of Global Trade.”

She described the impact of the Bank’s Affirmative Financing Action for Women in Africa (AFAWA) initiative on increasing commercial bank financing to female-led SMEs. Her presentation also touched on the success of the 50 Million African Women Speak platform(link is external) capacity-building project funded by the Japan, as a premier showcase of gender-responsive entrepreneurship support.

“Our goal here this week was to simply showcase Africa’s Portuguese-speaking countries as an attractive and emerging market for Brazilian investments. The Brazilian investor that sees Africa for its full potential and diversifies investments away from extractive industries, will have a significant first mover advantage,” Ferreira said.

In 2021, Brazil-Africa trade reached $16 billion, and this jumped nearly 40% in 2022, with Egypt being the top beneficiary. Nearly 4% of all Brazilian exports are destined for Africa.

Brazil’s President Luiz Inácio Lula da Silva in Angola earlier this year for the Brazil-Angola Economic Forum, and in São Tomé e Principe for the Community of Portuguese Speaking Countries Summit, where he reaffirmed his commitment to reignite Brazilian investment in Lusophone Africa.

The Brazil-Africa Forum is a major international conference that brings together African and Brazilian leaders to discuss trade, investment, development, and other global issues including climate change. The forum has forged important partnerships with African stakeholders from both the public and private sectors, including the African Development Bank, New Development Bank, and African Export-Import Bank as well as several representatives from African embassies based in Brazil. www.theafricalogistics.com

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TECHNOLOGY

Kenya-Uganda Express set to begin

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he African Development Bank (AfDB) through its New Partnership for Africa’s Development and Infrastructure Project Preparation Facility (NEPAD-IPPF) has approved US$1.4 million grant to EAC for the feasibility study of the Multinational Kenya/Uganda: KisumuKisian-Busitema-Busia Expressway Project.

The Expressway project is part of the Northern Corridor that runs from Mombasa to Burundi, Democratic Republic of Congo, Rwanda and Uganda through the port of Mombasa. It is the main corridor that transports the bulk of cargo that lands at the Indian Ocean ports inland to the five landlocked EAC Partner Sates.

Currently, the road sections forming the project consist of two-lane single carriageway bitumen sections that are heavily congested due to increased traffic movement for both cargo and passengers. This has resulted in increased travel times which results in higher vehicle operating costs and costs of doing business.

The objective of the feasibility study is to determine the economic viability of upgrading the existing multinational road sections from single carriageway to expressway The Africa Logistics

standards. The project has been prioritised by the respective Partner States and is expected to contribute to the delivery of economic infrastructure necessary for achieving tangible development outcomes for the region.

Speaking at the launch of the feasibility study, the EAC Deputy Secretary General (DSG) in charge of Infrastructure, Productive, Social and Political sectors, Hon. Andrea Aguer Ariik Malueth, thanked AfDB for supporting the EAC in the preparatory study of the Multinational Kenya/Uganda: Kisumu – Kisian – Busia / Kakira – Malaba and Busitema – Busia Expressway, which he said will catalyse the economy and development of the EAC region.

Hon. Ariik who represented the EAC Secretary General, Hon. (Dr.) Peter Mutuku Mathuki at the launch, said that the feasibility study will result in the development of a smart corridor beyond the traditional concept of transport corridor by incorporating digital technology as well as the social and economic needs of the citizens of the EAC as its core elements, adding that it will revolutionise the movement of goods and services between Nairobi to Kampala, and

sway project

beyond.

The DSG commended the continuous contribution of the AfDB through its NEPADIPPF facility in supporting the EAC integration agenda, which started way back in 2004.

Hon. Ariik disclosed that to date, eight (8) multinational road projects have been successfully prepared to bankability under the EAC Multinational Road Development Programme with five of them have proceeded to investment. He, however, said that the regional transport infrastructure in the EAC is still poorly developed due to missing links on cross-border transport corridors, hard and soft infrastructure on roads, railways, air transport and inland water ways.

The DSG further disclosed that that up to 80% of projects fail to take off due to inadequate preparation, that is insufficient feasibility studies being carried out to determine their economic financial, environmental, social and technical viability.

“Therefore, the grants provided by NEPAD-IPPF to the EAC has enabled it to prepare high-quality and bankable regional infrastructure projects that are able to attract public and private sector financing,” said

Hon. Ariik.

The DSG informed the Bank that the EAC will in soon organise the 5th Retreat of Heads of State to discuss infrastructure development and financing which will bring together the political leadership and investors at which regional priority projects will be showcased.

“Let me take this opportunity to invite the AfDB and NEPAD-IPPF to attend the event and highlight the progress made in supporting infrastructure in the region,” said Hon. Ariik.

On his part, the AfDB Acting Manager for Infrastructure and Partnerships Division, Mr. Epifanio Carvarlho de Melo, who spoke on behalf of the Bank’s Director of Infrastructure, Mr. Mike Salawou, reaffirmed AfDB’s commitment to work closely with the EAC ensure the success of vital projects that are poised to transform the economy of the region.

“Together, we have the unique opportunity to learn from one another, share experiences, and pave the way for a prosperous future for all residents of this region,” said Mr. de Melo.

www.theafricalogistics.com

23

TECHNOLOGY

Maersk unveils tech warehouse in Cam Maersk’s new warehousing & distribution (W&D) facility, spread over 16,000 sq.m. inside the Douala Port zone and powered by a cutting-edge system, will serve mainly the growing demand for FMCG cargo and, potentially, other strategic verticals in Central Africa.

A

.P. Moller – Maersk (Maersk), the global integrated logistics company, has opened its doors to a brand-new and technology-driven Warehousing & Distribution (W&D) facility in Douala, Cameroon. Situated within the Douala Port Zone, Maersk’s new facility is the ideal site for cargo moving in and out of one of the most important ports in the country along the West African coast, one that also serves as a gateway to several markets within Central Africa.

With the rapid expansion of the middleclass population in the region, there is a growing demand for goods, especially in 24

The Africa Logiistics

the FMCG sector. The Port of Douala plays a crucial role in meeting this demand, as it handles over 70% of imports into Cameroon, serving both the nation’s population and its landlocked neighbours within the Central African Economic and Monetary Community. The conversations with our customers have revealed a gap between the demand and supply for modern Warehouse & Distribution (W&D) facilities that can provide the additional capacity needed in this market.

As a response, we have decided to invest in a technology-driven Warehouse Management System (WMS) facility. This strategic move not only bridges the demand-supply gap, but also offers our customers a cost-

pallet positions. The facility will provide for dry warehousing and distribution with a focus on deconsolidation and fulfilment. Being a bonded facility, it will also provide for the storage of cargo in the customs clearance process. Maersk will also arrange value-added services at this facility, such as palletisation, packing and kitting.

The state-of-the-art facility with modern WMS will provide customers with accurate and real-time visibility of their inventory.

Full traceability using lot, batch, and serial numbering will ensure efficient movement of goods. Ultimately, the optimised operations using technology will aid in reducing waste and inventory errors and provide an improved experience to customers.

hnology-driven meroon

Maersk has a clear goal of being Net Zero by 2040, and every new investment being made has deep considerations in terms of the decarbonisation of logistics. The new facility by Maersk in Douala is no exception.

100% internal lighting will be done using low-consumption LED lights, and all external lighting will be powered by solar energy.

All forklifts required in the W&D operations will be battery-operated and charged using solar energy. At the beginning of operations, 15% of the site’s electricity requirements will be fulfilled by solar panels installed at the site itself, with a plan to scale up in the coming years.

The Port of Douala plays a crucial role in meeting this demand, as it handles over 70% of imports into Cameroon, serving both the nation’s population and its landlocked neighbours within the Central African Economic and Monetary Community.

Maersk’s customers will get several benefits by utilising this facility for bonded as well as non-bonded storage and distribution. Bundled with ocean transportation, customs clearances, intermodal transportation and other services, Maersk will provide truly integrated logistics solutions to its customers. Such a solution also adds greater control over supply chains and offers higher resilience. With everything put together, customers will get cost advantages, too, as all their logistics requirements get fulfilled under the same roof.

effective and efficient solution. We are expanding our logistics footprint in Southern West Africa and will scale up as per the customers’ demands. Maersk’s new W&D facility in Douala will be spread over 16,000 sq. m., including more than 12,000 sq. m. covered space that provides more than 8,000

Southern West Africa encompasses the following countries: Angola, Cameroon, Central African Republic, Chad, Republic of Congo, Democratic Republic of Congo, Gabon, Equatorial Guinee and Sao Tome and Principe.

www.theafricalogistics.com

25

FEATURE

T

he African Growth and Opportunity Act (AGOA) is a pivotal agreement between the US and Africa to support and help grow African industries and markets, says Standard Bank, Africa’s biggest lender by assets.

Speaking ahead of the 20th AGOA Forum taking place from 2-4 November 2023 in Johannesburg, Kenny Fihla, Chief Executive, Corporate & Investment Banking at Standard Bank Group, says a significant renewal of AGOA will help drive trade and support ongoing investment ties between the US and Africa. The benefits are profound, as it will also support sustainable growth, job creation and industrialisation.

This comes as Africa’s businesses are challenged by access, costs, risks and credit issues when trading across regional and international borders.

“African businesses and markets are becoming increasingly sophisticated and ready to go to the next level. Powerful initiatives like AGOA and the African Continental Free Trade Area (AfCFTA) are key to making this happen,” says Fihla.

Recent statistics show the significant impact AGOA has on trade. Total US AGOA imports were $9.4 billion in 2022, up 57% from $6.0 billion in 2021 and more than double 2020 values. Notably, AGOA nonenergy imports increased by 21% in 2022 to $5.0 billion. The top non-energy import categories included motor vehicles ($1.5 billion), textile and apparel ($1.4 billion), agricultural products ($679 million) and metals ($626 million).

As the leader in facilitating Africa-US trade, Standard Bank is leveraging its resources to enable access to and participation in regional and global value chains and to ensure partnerships with leading economies like the US continue to flourish. “We believe that active contributions to publicprivate dialogues like AGOA are essential to these developments and future growth,” adds Fihla.

AGOA grants duty-free, quota-free treatment for exports from eligible sub-Saharan Africa countries into the United States (US), with 35 countries eligible for AGOA benefits in 2022. AGOA is up for renewal in 2025.

“As the largest economy in the world, the US is an essential driver of global trade and investment. We are, as Standard Bank, in turn committed to driving Africa as an at26

The Africa Logiistics

AGOA vital to sustain industrialisation, say tractive investment market to all investors, including those from America,” continues Fihla.

Africa is a continent of traders Together with AGOA, Standard Bank is also optimistic about the transformative impact AfCFTA can have on inter-regional trade in Africa.

The US has expressed its support for the AfCFTA, which, once fully implemented, will be the world’s largest free trade area, bringing together 55 countries with a combined GDP of approximately $3.4trillion.

“The AfCFTA will create much-needed efficiencies across Africa’s trade borders. The potential with the world’s biggest economy is immense as financing for priority infrastructure projects, energy and other key investments take place,” articulates Fihla.

Standard Bank believes this single market holds the key to unlocking sustained levels of growth, reducing poverty and scaling up

nable growth, job creation and ys Standard Bank

“

We believe that active contributions to public-private dialogues like AGOA are essential to these developments and future growth.”

industrial capacity across the continent.

“We are committed to building trusted and efficient domestic/ regional value chains integrated into global supply ecosystems. Standard Bank is building finance and trade solutions to help address the tariff and non-tariff barriers required to realise the continent’s ambitions. Standard Bank is also leading efforts to reduce the impact of climate change by building sustainable solutions. The future is extremely bright – especially if we have the right partners on board,” says Fihla.

As long-term Africa bulls, Standard Bank is convinced that Africa is the growth story of this century.

“This week’s AGOA Forum is an important opportunity for the continent to showcase its value and growth prospects while it also allows the US to engage and see for itself what benefits this agreement continues to bring,” concludes Fihla. www.theafricalogistics.com

27

NEWS

Africa Finance Corporation exits stake in Ghana’s Takoradi Port to Yilport Holding

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frica Finance Corporation (AFC) (www.AfricaFC.org), the continent’s leading infrastructure solutions provider, has exited its 35% equity investment in Atlantic Terminal Services Limited (ATSL), the concessionaire for the expansion of Ghana’s Takoradi Port, to the global ports and container terminals operator Yilport Holding. This is testament to the Corporation’s ability to attract international 3rd party capital and exit strategic infrastructure assets built by derisking through AFC’s unique project development and construction offering.

In 2019, AFC committed to invest up to US$138 million in equity and debt for the TaThe Africa Logistics

koradi Port Expansion Project. The project, which is approaching the operational phase, reduces the cost of imports and exports to and from the western and central regions of Ghana and neighbouring landlocked countries by modernising a container and multipurpose terminal under a 25-year concession for its design, engineering, financing and construction. Through this transaction, AFC exits its shareholding, while Ibistek and Ghana Ports & Harbours Authority remain as shareholders in the project. AFC will continue to be lender to the project, fully committing to ensuring its success.

A vital seaport in Ghana’s Western Region, Takoradi plays a crucial role in the nation’s

economic growth and regional connectivity.

It offers shorter and less-congested links to west and central Ghana, including the Takoradi region, which boasts of substantial agricultural activity including 50% of Ghana’s cocoa production, as well as manufacturing, industrial and business parks, and a growing natural resources sector. The port is also well suited to provide linkages to neighbouring landlocked countries. The project forms part of the country’s national development plan to revitalize and industrialize the western region and enhance Ghana’s overall efficiency and competitiveness by reducing the cost of imports and exports, building local capacity and generating direct employment opportunities.

Samaila Zubairu, President & CEO of Africa Finance Corporation said, “This exit marks a significant milestone for AFC’s impact on the continent and we take pride in our pivotal role in driving the implementation and de-risking of the Takoradi Port Expansion. The project is reshaping West Africa’s economic landscape and partnering with a reputable investor like Yilport Holding aligns with our mandate to catalyse the inflow of global investment into Africa to transform supply chains, create local jobs and enable resource beneficiation.”

Yilport Holding, a subsidiary of Amsterdam and Istanbul-based Yildirim Group, has been building world-class, multipurpose port facilities since 2004, with a target to become a top 10 global port operator by 2030. Investment in Takoradi represents an ideal entry point into Africa for Yilport, which plans to transform the port and its adjacent area into a logistics and trading hub, ensuring high volumes of traffic.

“The acquisition of a stake in the Atlantic Terminal Services through AFC’s valued partnership marks a momentous occasion for Yilport Holding,” said Robert Yuksel Yildirim, Chairman and CEO of Yilport Holding. “This serves as a strategic gateway for us to establish our presence in the African market, and it aligns seamlessly with our commitment to fostering world-class logistics and trading hubs on an international scale.”

AFC is focused on developing long term infrastructure solutions that improve the resilience and sustainability of cost-efficient supply chain logistics. In the past year, the Corporation has completed construction of two new ports, Terminal à Conteneurs De Nouakchott (TCN) and the San Pedro (TIPSP) Multipurpose Industrial Terminal in Côte d’Ivoire.

www.theafricalogistics.com

29

OPINION

Collaborative Efforts Can Tackle Energy Sector Logistics Challenges

L

ogistics providers play a central role in distributing energy, a role which is poised to strengthen as new developments come online in Africa. During the African Energy Week (AEW) 2023 conference – organized by the African Energy Chamber (www.EnergyChamber.org)Africa Global Logistics (AGL), a logistics company operating in Africa, sponsored a session on the fundamental role of logistics in strengthening supply chains across the continent.

Koen Rombouts, Managing Director of AGL, outlined the company’s vision ahead of the panel.

“Africa is at the heart of our business.

AGL is dedicated to transforming Africa to the next level through strategic investments in ports, railways, and innovative tracking solutions,” stated Rombouts. “Our goal is to connect Africa to the world, embedding ourselves in local economies and promoting skills development and job creation.”

AGL’s recent accomplishments include the inauguration of the Port of Zanzibar and investments in supply bases on the continent.

During the panel discussion, the challenges that logistics companies experience in providing efficient services to the energy sector were highlighted, with Dennis Malkoc, Business Development Manager at Universal Africa Lines, noting that bureaucratic red tape, administrative hurdles, and inefficient corridors were hampering economic growth in Africa.

“Planning and efficiency are key. By workThe Africa Logistics

ing closely with partners and authorities, we aim to reduce costs and ensure smoother logistics operations. Africa is going to experience significant growth in these sectors, and the more exploration takes place, the easier our job becomes to connect the different countries through transport,” Malkoc stated.

Filippo Bof, Head of Business Development in Africa and the Mediterranean at Shell Trading and Shipping Company, further emphasized the importance of collaboration with local producers. “We support local energy companies by providing efficient logistics solutions. We focus on less capital-intensive methods, helping local businesses reduce credit exposure and enhance their cash flow. This approach fos-

ters sustainable economic development,” he commented.

Asked whether free trade agreements on the continent would ease the logistical challenges, Rombouts concluded that while companies were seeing efforts for these agreements falling in place, many countries still had a long way to go.

“We are optimistic that with the right commitment, Africa’s interconnectivity will significantly improve. It is important to support it, support the authorities to make it happen. Africa is not one country, the regulations change rapidly, and as the economies are developing, the regulations need to be adjusted. If we don’t invest in the right infrastructure, then we will not be able to develop trade. All this will connect Africa, this

is the only thing that will ensure economic growth,” stated Rombouts.

He concluded that the continent was heading for exciting times. “From an energy point of view, there is a lot of things happening on the continent, so we will invest further, strengthen our position and relationships with local partners and our employees to grow with the energy sector.”

We support local energy companies by providing efficient logistics solutions. We focus on less capitalintensive methods, helping local businesses reduce credit exposure and enhance their cash flow. www.theafricalogistics.com

31

The Role of Supply Chain in Knowledge Transfer: A Case Study of South African Automotive Industry

F

oreign direct investment (FDI) in developing countries can help increase the productivity of local firms by transmitting advanced technology and management know-how. In a recent study, researchers analyzed firm behavior in the South African automotive industry, finding that the supply chain has a The Africa Logistics

diamond shape, indicating that the benefits of knowledge transfer facilitated by FDI do not reach local firms. Their findings could have important implications for industrial development in Africa.

Unemployment among the youth is a serious problem in many developing countries, especially in Africa. This issue stems

OPINION

in great part from a stagnant manufacturing sector. Firms in African countries have failed to grow significantly over the past decade, leading to fewer job positions for the youth.

Foreign direct investment (FDI) is a promising avenue for addressing this challenge.

Local firms in developing countries can learn advanced technologies and management strategies from multinational companies. This transmission of knowledge, in general, helps make local companies more productive, leading to economic growth in the manufacturing sector. However, the flow of foreign technology and management know-how depends on the structure of production networks (supply chains), which means local firms may not automatically benefit from FDI. Against this backdrop, a research team led by Associate Professor Yuki Higuchi from the Faculty of Economics at Sophia University, Japan, has recently shed further light on the relationship between FDI, knowledge transmission, and firm behavior.

They used the South African automotive industry as a case study, peering into the relationships between the behavior of vehicle assemblers and parts suppliers, which represent foreign companies and local firms, respectively.

Their paper, published in The World Economy on 23 August 2023, was co-authored

by Dr. Justin Barnes of the Gordon Institute of Business Science at the University of Pretoria, Dr. Anthony Black of the School of Economics at the University of Cape Town, and Dr. Keijiro Otsuka of the School of Economics at Kobe University.

The team collected firm-level data from the South African Automotive Benchmarking Club, containing information about the location, ownership, and “tier level” of automotive firms in South Africa. In this study, the “tier” of a firm refers to its relative position in the supply chain. Put simply, firsttier firms supply products directly to the foreign assemblers, whereas second-tier firms supply products to first-tier firms, and so on. Most of the lower-tier firms were local, whereas some of the first-tier firms were foreign-owned.

The researchers conducted various statistical analyses using annual observations from 162 firms between 2002 and 2017, focusing on key performance indicators representing business performance, man-

agement, and growth. Through regression analysis, they gained insights into how multinational assemblers and local suppliers responded to the expansion of the automotive industry in South Africa. “Our approach serves to illustrate the presence, or lack thereof, of the transmission of technology and knowledge from foreign assemblers to other firms,” explains Dr. Higuchi. “It is a novel analysis regarding FDI spillovers from foreign assemblers to various layers of local suppliers.”

These analyses revealed that while the production of first-tier suppliers increased with the expansion of automobile production in South Africa, a similar growth was not observed among lower-tier suppliers. This suggested that the automotive supply chain in South Africa cannot be represented by a pyramid, as typically observed in Southeast Asia, especially in Thailand, with assemblers on top and the rest of the tiers occupying the wider layers below. Instead, it would have a diamond shape, with a comparatively smaller share of second- and lower-tier suppliers.

The researchers suggested that the benefits of FDI and the associated technology transfer have not reached second- and lower-tier firms. “While South Africa’s industrial policies might have aimed to increase local content, they instead enabled downstream firms, including foreign assemblers and first-tier suppliers, to replace locally produced parts with imported ones,” points out Dr. Higuchi. “Such policies have resulted in a missed opportunity for employment creation as the production of parts suppliers in the lower tiers is labor-intensive.” Moreover, the firm-level data suggested that only multinational, and not local, first-tier suppliers benefited from knowledge transmission, which further exacerbates the current problems.

Overall, the present findings bring pertinent issues to light and can serve as a starting point for working toward feasible solutions. Dr. Higuchi states: “I am currently working with the Japan International Cooperation Agency to provide training in Japanese-style Kaizen management to parts suppliers in South African automotive industry. I hope that this project will increase their productivity and contribute to industrial development in Africa.”

www.theafricalogistics.com

33

OPINION

A Roadmap to Progress: The Critical role of regulations in East Africa’s logistics industry

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n East Africa, a region known for its dynamic markets, the logistics sector faces a labyrinth of challenges. Among them, the pressing need for comprehensive regulations stands tall.

The vitality of regulations Logistics is not just about the movement of goods; it is an intricate web that must ensure the safety of consumers and the welfare of various stakeholders, including road users.

As an industry closely tied to thirdparty logistics (3PLs), it’s essential that these entities are properly registered, and their vehicles are duly inspected, maintained, and insured.

The Africa Logistics

The safety net widens when we consider the drivers, who should be adeptly trained, licensed, and devoid of any substances that can impair their abilities.

However, regulations don’t operate in a vacuum; they need an apparatus for enforcement. This necessitates personnel and the financial muscle to sustain them. The common approach is through taxes and fees.

East Africa’s prospects In East Africa, tourism reigns supreme as one of the top three sources of government revenue. The symbiotic relationship between the government and the tourism sector has seen barriers being removed, security being rein-

forced, and attractions meticulously maintained. The question then arises, why can’t we replicate this model for logistics?

The crux of the problem An Achilles’ heel in the logistics sector in East Africa is the shadowy nature of operations. It is estimated that up to 80% of freight brokers in East Africa are unregistered, thereby bypassing the tax net.

This evasion isn’t limited to freight brokers; it’s a ubiquitous issue, extending to makeshift repair shops and more. While it’s easy to castigate the players for not paying taxes, we must also acknowledge the public’s general distrust in governmental appropriations of funds.

Government-driven initiatives, while welcome, often have a revenue-centric perspective. Take, for example, the Single Customs Territory (SCT) being executed in East Africa, designed in part to plug tax leakages.

Carrot or stick?

The predicament requires nuanced handling. It’s vital for 3PLs to adopt self-regulation to curtail issues like theft and fraud.

This is where Apexloads steps in with its

However, regulations don’t operate in a vacuum; they need an apparatus for enforcement. database of verified 3PLs. This verification system, providing 3PLs with a unique numeric identifier, creates a transparency layer that is desperately needed.

However, the conundrum lies in incentivizing the 3PLs to participate in the verification process. Experience shows that voluntary participation is sluggish at best.

The “stick” approach seems more effective, but is it sustainable?

A collective way forward A collaborative approach is essential.

The onus is on the 3PLs to realize that selfregulation paves the way for long-term sustainability.

By working with verified partners, we can cultivate trust among cargo owners and foster a reliable network.

However, choices are integral. When brokers and transporters have an array of options, they are more likely to choose verified partners. In an ideal scenario, East African governments could mandate verification and the issuance of an EAC for all 3PLs. While it is evident that the logistics industry requires regulation, there needs to be a balance. A blend of government mandate and self-regulation could be the golden mean we seek.

Let’s not wait for the stick. Let’s be the change, and let’s steer the logistics industry in East Africa towards a horizon of progress and prosperity.

Charles Thuo is the Chief Executive Officer and Founder of Apexloads Inc.

www.theafricalogistics.com

35

Afreximbank issues the first-ever multi-border transit bond in Zambia under the Afreximbank African Collaborative Transit Guarantee Scheme (AATGS)

A

freximbank (www.

Afreximbank.com) announces the historic issuance of the first-ever multi-border transit bond. The US$10 million transit bond issued in favour of Innovate General Insurance (IGI) of Zambia is expected to provide counter guarantees and boost IGI’s capacity to issue bonds to Clearing and Forwarding Agents in Zambia.

The Afreximbank African Collaborative Transit Guarantee Scheme (AATGS) was designed by the Bank to promote the seamless movement of goods across multiple national customs borders, as a means of improving efficiency The Africa Logistics

As a Pan-African Multilateral Financial Institution, Afreximbank is able to provide capacity to national sureties to enable them to issue bonds.

and shortening the time for border clearances. The US$1 billion Collaborative Guarantee Scheme is expected to accelerate cross-border trade in Africa and save the continent about US$300 million annually in transit costs.

As a Pan-African Multilateral Financial Institution, Afreximbank is able to provide capacity to national sureties to enable them to issue bonds at affordable rates and facilitate intra-African trade under the African Continental Free Trade Agreement (AfCFTA).

Being one of the AfCFTAflagship initiatives, the Collaborative Guarantee Scheme is being implement-

FEATURE

ed in partnership with the AfCFTA Secretariat as well as Regional Economic Communities. The facility to IGI, which is expected to facilitate the transportation of goods across its almost 5,700 km of borders with its eight neighbouring countries, is a realisation of the broader partnership between Afreximbank and COMESA Council of Regional Customs Transit Guarantee (RCTG-Council) Prof Benedict Oramah, President and Chairman of the Board of Afreximbank, commented: “This milestone is a realisation of the aspirations of Africa’s foreleaders about six decades ago at the inaugural meeting of the Organisation of African Unity (OAU). We have, through this breakthrough, inched closer to the emergence of a single continental integrated market and dismantling the 110 borders that divided the continent into atomistic countries.”

Mr Luwa Luwabelwa, Director, Innovate

General Insurance, stated that “the capacity provided by Afreximbank is timely and will allow the issuance of more affordable transit bonds to its clients, who are Clearing and Freight Forwarding Agents and most of them are Small and Medium Enterprises.”

Also talking about the partnership, Mr Trodson Keith Chemu, President of Zambia Freight and Forwarders Association (ZAFFA), thanked the Bank for the first-of-its-kind intervention to support the Customs Brokers and avail affordable transit bonds to facilitate the movement of goods in transit. He added that the freight forwarder industry in Zambia is working tirelessly to implement a Regional Electronic Cargo Tracking System to provide real-time monitoring of goods in transit to ensure the transit bonds issued are protected.

www.theafricalogistics.com

37

OPINION

A COMPANY WITH GLOBAL REACH LOCATED AS CLOSE

AS POSSIBLE TO

OUR CLIENTS SNF Mining Markets

21

MAUNUFACTURING FACILITIES

Andrézieux Plaquemine Riceboro

Iron Ore Coal and Fly ash Ferrous and non Ferrous metals Industrial minerals: Titanium, Phosphate & Potash

The Africa Logistics

NEWS

USING FACIAL RECOGNITION, SITA AND FRAPORT ENABLE A CONTACTLESS TRAVEL EXPERIENCE FOR ALL AIRLINE PASSENGERS

S

ITA and Fraport are enabling all airlines at Frankfurt Airport to jointly use face biometrics as identification from check-in to boarding the aircraft. Frankfurt is the first airport in Europe to offer biometric touchpoints to all airline passengers, enabling streamlined, frictionless passage throughout the airport.

Using SITA’s Smart Path biometric solution, powered by NEC, your face becomes your boarding pass. Passengers can securely register in advance on their mobile device through the Star Alliance biometric app or directly at the check-in kiosk with their biometric-enabled passports. The whole registration process only takes a few seconds.

Once registered, passengers pass through the facial recognition-equipped checkpoints without showing any physical documents. The new technology is already in use by more than 12,000 passengers at check-in, boarding pass control, and boarding gates.

Dr. Pierre Dominique Prümm, Fraport AG’s Executive Director Aviation and Infrastructure, said: “Together with Lufthansa and the Star Alliance airlines, we have been offering this innovative service since 2020, an experience – with the help of SITA and NEC – which will now be extended to all airlines. We are the first European airport to offer all passengers a contactless and convenient passenger journey using biometrics. Our goal for the coming months is to equip at least

50% of all check-in kiosks, pre-security, and boarding gates with the new and pioneering technology.”

David Lavorel, CEO of SITA, said: “We have seen that the more we can automate the passenger journey in the airport, the better the experience. Biometric touchpoints significantly speed up the mandatory steps in the airport, giving passengers more time to relax before the flight rather than waiting in line. We know from our research that where biometrics are introduced, more than 75% of passengers will gladly use them. Therefore, we are pleased to bring the benefits of a faster airport journey to Frankfurt Airport.”

Naoki Yoshida, Corporate Senior Vice President, NEC, said: “As a pioneering biometrics technology partner of Star Alliance and SITA, we are proud to be able to support Fraport’s innovative and ground-breaking approach to streamlining passenger facilitation by creating a seamless travel experience throughout one of Europe’s most important gateways for travel.”

SITA’s biometric solution leverages the NEC I:Delight digital identity management platform, ranked the world’s most accurate face recognition technology in vendor tests conducted by the US National Institute of Standards and Technology (NIST). This means passengers who have opted to use the service can be identified quickly and accurately, even on the move. www.theafricalogistics.com

39

The Africa Logistics

www.theafricalogistics.com

41

A COMPANY WITH GLOBAL REACH LOCATED AS CLOSE

AS POSSIBLE TO

OUR CLIENTS SNF Mining Markets

21

MAUNUFACTURING FACILITIES

Andrézieux Plaquemine Riceboro

Iron Ore Coal and Fly ash Ferrous and non Ferrous metals Industrial minerals: Titanium, Phosphate & Potash

The Africa Logistics