Imagine this: It costs an average of $2,150 to $4,850 to transport a 40-foot container from China to Lagos, Nigeria. However, moving that same container from Apapa Port in Lagos to Lagos Mainland costs about $4,000. This means that it costs the same amount to transport a container halfway across the globe as it does to move it within Lagos. But why is this so?
The answer lies in the transport costs and ‘fees’ that arise as goods move through the city. In fact, logistics costs account for 70% of a product’s price in Africa, compared to 6% in the United States. It’s clear that logistics in Africa face significant challenges, and these challenges are not limited to just one area.
The logistics sector in Africa is a massive market, with a revenue of $344.2 billion in 2020
Statista
One of the major challenges is poor infrastructure. Africa has bad roads, inefficiencies, and limited port capacity, which leads to containers being left at the ports for months before they’re moved. Another challenge is fragmented supply chains. With 54 different countries, each with its own regulations, taxation laws, and customs procedures, creating a transparent and efficient supply chain becomes a herculean task. Logistics management in Africa still relies heavily on pen and paper, making it difficult to efficiently track and manage deliveries. And truck drivers often struggle with the high cost of fuel and vehicle maintenance. Many of them are unbanked or underbanked, which makes accessing financing a major challenge.
However, there are innovative startups like Coche Ride that are using technology to revolutionize logistics. They are developing technology-driven platforms that enable companies to track and optimize last-mile deliveries. Coche Ride aims to become the powerhouse of heavy logistics across Nigeria and Africa, a sector that relies primarily on pen and paper. By leveraging data from deliveries, companies can optimize their fleets to operate more efficiently. This not only reduces costs but also contributes to a more sustainable logistics industry.
Coche Ride aims to become the powerhouse of heavy logistics across Nigeria and Africa, a sector that relies primarily on pen and paper
Despite the significant challenges facing Africa’s logistics landscape, there are also many opportunities. The logistics sector in Africa is a massive market, with a revenue of $344.2 billion in 2020. Coche Ride is a logistics platform that connects businesses to transporters and truck drivers, facilitating the movement of goods across Nigeria. What sets them apart is their commitment to customer satisfaction and security by addressing issues related to tracking and management. Coche Ride offers goods in transit insurance for every booking on its platform, ensuring the protection of customer interests.
In a landscape where logistics costs have long been a hindrance to economic growth and competitiveness, companies like Coche Ride are a beacon of hope. With their innovative solutions and a strong focus on customer needs, they are contributing to the transformation of African logistics, one delivery at a time.
