Riding the Digital Wave: Technology leading logistics transformation in Sub-Saharan Africa

As anticipated at the start of the year, technology is an ongoing game-changer, ushering in a new era of business for supply chains as digitisation and automation continue to transform and optimise trade flows across the African market.

The increased adoption of solutions such as Artificial Intelligence (AI) and the Internet of Things (IoT) has boded well for the sub-Saharan Africa region, empowering it to overcome historical infrastructure challenges.

Globally, a “paradigm shift” is being witnessed wherein there is increased optimism about the use of technology, not merely as a supplementary tool, but in fact, as the backbone of supply-chain restructuring. As global supply chains grow more complex, businesses seek greater control and visibility, whilst also meeting rising customer demands for immediate and seamless shipping.

Supply chain management is therefore critical in improving operational efficiencies and driving customer satisfaction through cost-effective and reliable delivery of services.

According to the 2024 Trade in Transition report, led by Economist Impact and supported by DP World, for the 3,500 senior executives surveyed, technologies that improve supply-chain efficacy and resilience are by far the main source of optimism for the future of global trade.

AI is not only being integrated in supply chain management, but also in optimising the customer experience – and the results are noteworthy.

Businesses are experiencing a 33.5% reduction in overall trade operation costs, and a 32% enhancement in resource and supply chain planning. The report notes, “The scale of these optimisations indicates that the impact of AI on existing supply-chain operations has already been transformative for certain businesses”.

Through AI and IoT, end-to-end visibility is made possible for customers and provides businesses with data for predicting disruptions and making insights-driven decisions, including on production and transport capacity – ultimately making it easier for customers to bring their goods to market.

Ecommerce driving insights and growth

Africa’s growing youth population positions the continent as an ideal market for global players, and through enabling greater end-to-end visibility and flexibility, ecommerce is acting as the catalyst to more efficient supply chains.

The growing digital economy has further streamlined the supply chain process, with Africa forecast to surpass half a billion ecommerce users by next year (2025) according to the International Trade Administration. These platforms are streamlining operations, supplying real-time communication between suppliers and manufacturers, and providing valuable data-driven insights through analytics.

Blockchain a disruptive force for the supply chain

Blockchain technology is also gaining widespread appeal and adoption through ensuring the simplification and secure transfer of information. A key factor further driving this is that it aligns with emerging demands of transparency and accuracy, which serve to increase trust among consumers and partners.

A key take-out from the survey showed that 58.9% of businesses used blockchain technology by 2023, with an additional 27.5% planning to implement the technology this year. Through reducing fraud, errors and paperwork delays, and minimising courier costs – the value of this technology further lies in its ability to speed up processes whilst prioritising accuracy.

Blockchain is a potentially disruptive technology, offering a digitised ledger available to wider networks and cutting bureaucracy.

3D printing increasing agility

The automotive industry – critical in enhancing intra-African trade and connecting Africa and the world – is witnessing a pivotal shift in the use of 3D printing technology. The African logistics industry is expected to double over the next 3-5 years. However, this growth is tempered by complex dynamics within the region including high logistics costs and inefficient infrastructure.

Companies within the industry are turning to this technology for the design and production of new models, boosting the efficiency of supply chain operations. This is supported by survey findings highlighting that in the realm of product customisation and decentralised production, 3D printing was a clear standout for 58.5% of businesses using it in 2023.

The only constant is change within an ever-evolving supply chain ecosystem, and the digital wave blowing through it serves to integrate this change in seamless and efficient ways. Supply chain technology in this digital era is about simplifying the complex – and as DP World we strive to remain constantly ahead of the digital game by integrating these transformative technology services into how we build end-to-end supply chains, enhancing transparency, efficiency, and most importantly, sustainability.