BIG PROBLEM OF LOGISTICS INEFFICIENCIES IN UGANDA | Sowoll

Release time: Tuesday, September 11, 2018
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In Uganda, and East Africa, logistics bottlenecks and inefficiencies are present at multiple stages in the supply chain, including loading, delivery and warehousing, packaging and waste management. Traffic congestion, along key transport corridors, roadblocks and checkpoints pushes up time and costs of logistics, which are passed onto the shippers.Such costs are borne by the consumers.The results of these inefficiencies are high logistics costs.

Logistics inefficiencies in import and export of goods, in Uganda,are estimated to cost $827 million (Shs3.1 trillion) each year and logistics costs account for 18 percent to 20 percent of the sale price of goods.

Inadequate infrastructure, lack of access to affordable finance, high costs of logistics services, lack of an agency within government that is responsible for logistics, creates uncertainty on legislation in the logistics industry.



It is estimated that Uganda loses 30 per cent of its major staple crops harvest which is damaged every year by the inability to store and move them appropriately.What does the future hold for the logistic sector?

There is likely to be considerable employment growth within the Ugandan logistics sector. As Uganda shifts towards an efficiency-driven, middle income economy with more sophisticated manufacturing and service industries, the nature of its logistics sector will also evolve and become more sophisticated.

Uganda also lacks modern warehousing facilities. Much of the warehouse capacity is rather dated, lacking computerised stock supervision systems or the ability to use multiply racking systems. Many warehouses have unsealed loading platforms which expose food products to ambient air temperatures during loading/unloading.

So,a more efficient logistics sector would offer Uganda increased potential for economic diversification and growth. Businesses in Uganda requiring transport and logistics services are in every sector of the economy, from producers of natural or raw materials, to manufacturers of semi-finished or finished goods, processors, exporters and importers, plus wholesalers and retailers.
 
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