AfCFTA: Opportunity for the logistics sector

In the quest to improve intra-Africa trade, African countries and regional economic blocs have emphasized the pivotal role of the logistics sector. With the African Continental Free Trade Area Agreement (AfCFTA) marking its second year of operation, there is a collective determination to enhance trade between countries across the continent. Meshy Alois, the CEO of Sendy, a digital supply chain and technology company, sheds light on the evolving landscape of the logistics sector in Africa. Preceding the COVID-19 pandemic, the logistics landscape has witnessed significant transformations. Alois notes that the prominence of logistics in facilitating trade has grown exponentially. With an increasing shift towards online trade, businesses are exploring new avenues to reach customers amid the pandemic. Post-pandemic, logistics continues to play a crucial role in driving trade growth, aligning with the changing dynamics of the global market. Discussing the challenges hindering intra-Africa trade, Alois emphasizes the complexity of cross-border operations. By streamlining processes and leveraging technology, companies like Sendy aim to simplify the logistics chain, enabling businesses to navigate the intricate web of regulations and transactions seamlessly. The key focus lies in reducing the high costs associated with logistics, which often pose a barrier to SMEs looking to expand their operations. Alois underscores the significance of innovation in the logistics sector, particularly in the realm of e-commerce. As traditional players like DHL and FedEx venture into the digital logistics space, startups like Sendy emphasize operational efficiency to remain competitive. By collaborating with existing players and enhancing their digital platforms, Sendy strives to offer cost-effective solutions tailored to meet the needs of SMEs. Expansion remains a central theme for Sendy's growth strategy. Currently operating in four markets, including Kenya, Uganda, and Nigeria, the company envisions expanding its footprint across East and West Africa. By digitizing and formalizing traditional logistic providers, Sendy aims to scale its operations swiftly and efficiently. The platform's asset-light model allows for rapid growth without heavy investments in physical infrastructure. Looking ahead, Alois outlines Sendy's short-term and long-term plans. In the near future, the company aims to establish a presence in key markets in East and West Africa, such as Ghana, Senegal, Egypt, and South Africa. In the long term, Sendy envisions creating a comprehensive fulfillment service to cater to the diverse needs of businesses, akin to an Amazon-level fulfillment model. By integrating data, inventory management, and last-mile delivery services, Sendy aims to provide a holistic trade platform for businesses to thrive. As the logistics sector evolves to meet the demands of a rapidly transforming trade landscape, companies like Sendy are at the forefront of driving innovation and efficiency. With a keen focus on digitization, cost optimization, and expansion, Sendy is poised to unlock new trade opportunities and drive economic growth across Africa.