When China's logistics efficiency allows consumers to enjoy the convenience of next-day, same-day, or even 30-minute delivery, what is Africa's logistics industry like?

With the rapid development of e-commerce and living services in major African countries, the international, inter-city, and intra-city logistics needs of consumer and corporate customers will continue to grow. It is expected that the African logistics market will have the most growth potential in the next two decades. One of the industries. According to World Bank data, prior to the 1980s, most transport companies, railways, buses and freight companies, airports, seaports and civil aviation in sub-Saharan Africa were public and strictly regulated.

These enterprises are linked to government financial support, have low cost recovery rates, and often operate at a loss. For many aid projects, the local lacks the ability to maintain, poor governance, and unsustainable investment.

The transport sector in sub-Saharan Africa has undergone major changes since the 1990s. Most of the transportation business has been deregulated, and the transportation policy has been modified to allow enterprises and private individuals to participate in the operation and management of transportation business. Most bus and freight companies have been privatized, and the government has generally agreed to make concessions to rail, port and airport management rights. Nevertheless, a 2014 report by the African Development Bank stated that 53% of roads in Africa are unpaved (that is, most trucks are impassable) and the roads are old. For example, many roads in Kampala, Uganda, were still built in the 1960s.

At the same time, political and economic barriers between different countries within Africa are also one of the major obstacles to logistics development in the region. In addition, the logistics industry across the African continent must face the natural barriers brought by the geographical environment. Africa's geographical form is complex, with higher areas in the south and east forming a strong contrast with lower elevations in the west and north.

All these factors have led to high logistics costs in Africa.

If you transport a car from Paris, France to Lagos, Nigeria, the cost will be much lower than transporting a car from Accra, Ghana, in the Gulf of Guinea, West Africa, to Lagos. According to World Bank analysis, the cost of transporting goods in Africa is about 2-3 times that of developed countries. According to the Global Logistics Index, the average African logistics index in 2018 was 2.44, lower than the world average of 2.87, and there was a large gap with developed countries. Africa's 16 landlocked countries rely heavily on neighboring coastal countries for their logistics development. The average distance between major African cities is 4,100 kilometers, and the average flight time between major cities (populations over 4 million) is 12 hours, making it the longest time-consuming area in the world.

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