ICT-driven logistics platforms are fast becoming a burgeoning hub in the East African region, with tens of such companies emerging to serve the growing needs of the community and beyond. These platforms increase people’s reach to foreign markets and make transactions easier and faster.
In East Africa, some of the most dominant ICT-driven logistics platforms are Sendy, Lori, Kobo360, and Twiga in Kenya and Uganda. These companies have shifted away from traditional logistics, employing various ICT technologies to perform logistics tasks. For example, they oversee online payment and receipt issuance, which are easier and faster. They utilize the internet and technologies that enhance e-commerce and digital platforms to provide seamless services. ICT-driven logistics platforms manage inventory and storage of goods, track goods shipment, and more.
The advent of these ICT-driven platforms has brought numerous benefits to the East African region. Fraud-related offenses have drastically reduced in the logistics sector, as ICT platforms ensure accountability. Companies, particularly small and medium-scale enterprises like farms, gain access to a broader pool of buyers across the region and beyond for perishable goods like tomatoes. Kenyans can easily trade goods among themselves and with Ugandans, generating accompanying jobs for drivers, motorists, agents, logistics personnel, and others.
Despite the increasing presence of ICT-driven logistics platforms, challenges persist. Tight and inconsistent regulatory frameworks in East Africa, such as high tax regimes, hinder the easy expansion of logistics companies. Moreover, poor infrastructure, like inadequate roads in rural areas, threatens the operations of logistics platforms. Low patronage of digital logistics platforms due to limited education among citizens also poses a challenge.
ICT-driven logistics platforms have significant potential to thrive in the East African region; therefore, collective efforts are necessary to eliminate the barriers threatening their operations.
