Logistics Challenges in Sub-Saharan Africa and Opportunities for Digitalization

TLDR

Logistics performance drives economic growth, and digitalization enhances global trade, yet Sub‑Saharan Africa lags due to weak policies, infrastructure deficits, and trade barriers that break supply chains. The study aims to investigate Sub‑Saharan Africa’s logistics challenges and digitalization opportunities. The authors performed a systematic literature review of 287 articles meeting predefined criteria and supplemented it with semi‑structured interviews of logistics service providers. The study identified common logistics challenges and solutions, noting that human‑capital training, infrastructure investment, and regulatory reforms are key to adopting digital technologies and boosting growth.

Abstract

Improvements in logistics performance are considered to be a significant driver of economic growth. Digitalization in logistics, which includes enhanced tracking systems, digitized flows of information, artificial intelligence and automation, has further enabled globalized trade. However, Sub-Saharan African (SSA) economies, majorly export-commodity-dependent, still lag behind, grappling with inadequate policy frameworks, huge infrastructure deficits and trade barriers which result in a broken supply chain that negatively impacts growth. This study aims to investigate existing challenges in Sub-Saharan Africa, the potentials for the region to leapfrog traditional supply chain practices and adopt digital technologies, by evaluating previous findings in a systematic manner and augmenting these findings through semi-structured interviews. Systematic literature analysis conducted on published academic literature within a specific period and based on predefined criteria resulted in 287 articles being used for the final analysis. The most common logistics challenges and potential solutions have been identified. Semi-structured interviews with logistics service providers in the region have been conducted to establish the findings highlighted in the systematic literature review. The interviews showed that human capital training is a major factor when adopting digital technologies, and a focus on infrastructure investments, regulatory and institutional framework improvements will boost economic growth in Sub-Saharan Africa.