WHAT ARE LOGISTICS?
First of all, it is important to understand what logistics are. In this article, logistics will refer to the planning and putting into place of often complicated systems in order to provide and distribute goods and services.
WHY ARE LOGISTICS A PROBLEM?
Many of the biggest challenges that African businesses face are logistics related. Within cities, congestion and overpopulation make it very difficult and very inefficient to provide goods and services. On the other hand, transportation between cities and across borders can prove equally challenging due to distance or lack of necessary structures like roads or bridges.
WHAT MAKES LOGISTICS A BUSINESS OPPORTUNITY?
As is so often the case in business, one person’s challenge is another’s opportunity. Providing logistics support in order to overcome these difficulties is a rapidly growing sector of the African economy. What’s more is that by making markets more accessible and therefore profitable, more businesses will want to take advantage of the logistics solutions provided.
This creates a positive cycle, encouraging the growth both of local businesses and the services which provide them logistics support and make those businesses possible. It is however important to recognize that these challenges are real and can be difficult to overcome.
WHAT ARE SOME EXAMPLES OF LOGISTICS SUPPORT?
Across Africa there are already many business ventures finding profitable ways to solve logistics related issues. For example, Twiga Foods in Kenya is trying to help retailers in cities deal with the issues of congestion. Crowded streets can make getting products from a market to your store a long and difficult process. By providing a service which delivers these products in bulk directly to suppliers, Twiga Foods has raised over 10 million dollars all while making it easier for these local retailers to do business.
In conclusion, there is an ever growing market for logistics solutions, like the ones provided by Twiga Foods, all across Africa. Not only is providing these logistics solutions a sound financial move, it allows other businesses to grow and prosper, helping the economy as a whole.