Serigne Ndanck Mbaye
Africa-Press – Ghana. The World Bank projects Sub-Saharan Africa’s economic growth to reach 4.3% in 2023, with further expansion expected at 5.1% in 2024 and 5.2% in 2025. While Ghana’s growth rate is somewhat weaker in comparison, its economy is still experiencing a positive upswing. This is particularly true in industries such as oil and gas, agriculture, manufacturing, and professional services, which rely heavily on logistics.
As Ghana’s economy expands, logistics plays an increasingly crucial role in facilitating trade, enhancing supply chain efficiency, and establishing connections to both domestic and international markets. In this article, we explore the vast potential of logistics to act as a catalyst for economic growth and development in the country. Ghana, ranked among the fastest-growing economies in Africa, is experiencing a surge in its middle class’s consumption levels. This has led to unprecedented demand for freight forwarders and warehousing capacity in the country. To capitalise on and meet this demand, Ghana must invest in developing modern ports, infrastructure, and advanced warehousing facilities.
The substantial investment in the country’s two main seaports, Tema and Takoradi, is an excellent example of how Ghana can boost its economy. Notably, the port of Tema stands as the largest, receiving an average of over 1,511 vessel calls annually. Alongside the Takoradi port, it handles an incredible 85% of the country’s trade.
Enhancing transportation networks can significantly boost connectivity and minimise transportation costs. Additionally, a reliable and efficient logistics infrastructure will entice investors and bolster the growth of diverse sectors, playing a pivotal role in the country’s overall economic development.
Harnessing the digital economy
Ghana boasts a vibrant digital landscape, with over half (16.8 million) of its population as active internet users. Of these, 9.8 million regularly engage on social media platforms (DataReportal, 2022). These statistics offer logistics players an excellent opportunity to leverage the abundant data generated from these digital channels to improve their offerings. Embracing digital technologies will significantly enhance the transportation of goods and services, leading to improved efficiency, cost savings, and a better customer experience. Ghana’s budding digital entrepreneurship and e-commerce platforms have already created economic opportunities, with logistics playing a critical role in ensuring overall fulfilment, including last-mile delivery and enhanced customer satisfaction.
Ghana can fully exploit the digital economy’s potential, expand market access, and stimulate economic growth by strengthening logistics networks, implementing digital tracking systems, and fostering collaboration between logistics providers and e-commerce platforms.
Cargo tracking in farming communities
Effective logistics management is vital for Ghana’s agricultural sector, which employs a significant portion of the population and contributes to both domestic consumption and export revenues. By investing in transportation infrastructure, storage facilities, and cold chain systems, Ghana can reduce post-harvest losses, enhance product quality, and expand access to both domestic and international markets. Such investments will foster rural development, increase agricultural productivity, and generate employment, ultimately contributing to overall economic growth.
Improved cargo tracking is a pressing need for the estimated 1 million smallholder farmers in marginal areas of Ghana, who heavily depend on cocoa for their livelihoods. A digital instrument like IoT can empower farmers to monitor tracking and interact with assets effortlessly, providing them with faster, more efficient, and predictable supply chains.
A central IoT platform allows logistics providers and customers to track all assets in real time, offering full visibility into shipment tracking. Advanced analytics software enables storing, processing, and analysing shipment data, unveiling hidden patterns, and optimising resource and cost management.
With this data, carriers and their customers can enhance route planning, reduce fuel consumption, automate manual tasks, improve efficiencies, and strengthen shipment security. Such a monitoring system empowers businesses to take immediate action, enabling timely deliveries and freeing up valuable time previously spent on cumbersome paperwork for shipping companies.
Logistics is the lifeblood of trade activities
Logistics is a fundamental enabler of Ghana’s economic growth, playing a pivotal role in facilitating cross-border trade, bolstering agriculture and manufacturing, propelling infrastructure development, and embracing the digital economy.
Ghana’s strategic location on the Gulf of Guinea provides it with a competitive edge as a regional trade hub. Establishing a strong logistics network encompassing ports, airports, and transportation infrastructure is paramount to facilitating seamless import and export processes.
By optimising customs procedures, enhancing cargo handling, reviewing local content law currently excluding international companies like DHL to participate in the upstream sector and elevating overall logistics services, Ghana can attract much-needed foreign investments, bolster the exports of locally produced goods, create jobs, and drive substantial and inclusive economic growth.
A connected future
In Ghana’s economic recovery journey, IoT supply chain solutions will be instrumental in shaping a connected future with expanded capabilities. These solutions promise increased capacity, wider reach, faster speeds, improved energy efficiency, and reduced costs, effectively addressing operational challenges for businesses entering the market.
Source: News Ghana
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