Africa’s growing population and the development of mega cities is set to put pressure on the continent’s ports according to Nosipho Mdawe, secretary general of the Ports Management Association of Eastern and Southern Africa (Pmaesa).
“The African population is growing at an annual rate of 2.25% compared to the global rate of 1.13%. It’s estimated that mega cities will increase by 25% by 2025 with an average growth rate of around 3.4%,” she said. “At least 60% of the African population will be urbanised by 2050.”
“The logistics and maritime sector will increasingly come under the spotlight as the populations grow and the demand for goods increases,” said Mdawe. “It is a sector that must be ahead of the population growth and if it is not then Africa is in trouble.”
Mdawe said now more than ever African needed smart ports and smart corridors to respond to the challenges.
“The cost of logistics in Africa is already higher than anywhere else in the world. Bringing those costs down is crucial. Transport is still the highest cost as we rely on road freight not only locally but across Africa. Fuel continues to be the highest component of the overall transport cost.”
She said looking at landlocked countries there were question marks over how they were going to become economically successful if cargo continued to be moved back and forth to ports at these high rates.
“Africa needs to find answers and implement solutions to these challenges. It cannot just continue the way it is at the moment,” said Mdawe, pointing out that it was already happening in certain regions.
“The northern corridor in East Africa is reducing cost simply by moving cargo differently,” she said.
And the time had come to focus not only on ports, she added. “The port is just one element in the value chain and we need to see more integration across the corridor networks, more rail solutions and better functioning dry ports. There has to be awareness of the cause and effect of the value chain relationship.”
Mdawe said far too much time and effort were being spent on ports without looking at the transit corridor as a whole.
“We need to change our approach and it needs to be done now or we will miss the opportunity to change the face of this continent.”