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High logistics costs hinder Africa’s perishable exports

Logistics costs in Africa remain elevated compared to other regions. "Our transport costs are between $5 to $8 per kilometer per TEU, compared to $1 to $2 per kilometer in Asia," states Agayo Ogambi, CEO of the Shippers Council of Eastern Africa (SCEA). These costs are attributed to poor road conditions, traffic congestion, and a lack of dedicated lanes for perishable cargo. Both air and sea freight rates are high, impacting business competitiveness, especially for SMEs.

Kenya's reliance on air freight for exporting fresh produce to Europe is significant. Okisegere Ojepat, CEO of Fresh Produce Consortium of Kenya (FPC Kenya), notes, "The cost of freight is the single most expensive part of this business." Seasonal fluctuations and airline priorities often lead to air cargo capacity shortages, as airlines focus on more profitable routes like China and the U.S.

Raphael Kiptis, Head of Finance at Sian Roses, highlights air freight capacity as a major challenge. "In peak seasons, space is scarce, and freight rates surge, squeezing margins for growers," he explained. In 2024, a drop in air cargo capacity from Nairobi to Europe caused disruptions. "We had the product, we had buyers, but we had no way to move it. This kind of disruption leads to waste and financial losses," Kiptis noted.

FPEAK is advocating for more foreign cargo carriers to ease freight bottlenecks. "We have pushed the government to reduce landing costs at Jomo Kenyatta International Airport (JKIA) to attract more airlines, but progress has been slow," says Patrice Ngenga, Technical, Standards and Compliance Officer at FPEAK.

Kenya's cold chain infrastructure remains underdeveloped, leading to high post-harvest losses. Ojepat emphasizes the need for public-private partnerships to invest in solar-powered cold storage units. "Without proper first-mile cooling, we risk compromising the quality of our produce before it even reaches the pack house," he noted.

Kenya's push for more sea freight exports is hindered by infrastructure gaps, particularly in rail connectivity to the Mombasa port. "Only 20 wagons on the SGR are equipped for refrigerated cargo, which is insufficient given the volume of fresh produce moving to the port," Ngenga said.

Efforts to diversify markets beyond Europe are ongoing. Despite challenges, the UAE and South Korea are emerging as promising markets. Ojepat believes diversifying to India, China, and the Middle East is critical for long-term sustainability. Africa's perishable exports face logistics hurdles, but with strategic collaboration and infrastructure investments, the potential for growth remains.

Source: Logistics Africa