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Africa

African Port Growth Hindered By Poor Road, Rail Networks, Report Says

todayOctober 21, 2024

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Nairobi, Kenya — Africa has seen the capacity of its ports grow significantly over the years, but a report from the Africa Finance Corporation says the expansions, upgrades and investments have not led to better inland logistics and supply chains.

Since 2005, African ports have received an estimated $15 billion in investments, allowing them to accommodate larger ships and offload more cargo for transportation across the continent.

According to the African Development Bank, port development has led to increased traffic. Between 2011 and 2021, container units passing through African ports increased by nearly 50%, from 24.5 million to 35.8 million.

Gabriel Sounouvou, a Guinean specialist in logistics and supply chain management, said port investments have multiple benefits, including better integration with the global supply chain and a reduction in corruption.

“We cannot modernize the port without technology integration,” Sounouvou said. “So … when the government modernizes the port, they also create this transparency that reduces corruption.”

However, according to the Africa Finance Corporation’s 2024 report, “State of Africa’s Infrastructure,” the increased capacity at ports has yet to lead to an efficient logistical supply chain across the continent.

The researchers say African governments have neglected road and railway networks, which are unevenly distributed, of poor quality and underused, which limits their usefulness.