The Logistics Africa 2016 report, issued by Knight Frank, a property management company, found that international retailers have increasingly demanded properties suited to the efficient fulfilment of online orders, geeskaafrika.com reports.
The growth is driven primarily by the increased penetration of smart mobile devices into the continent’s markets. Knight Frank estimates that warehousing and logistics sector grew by 24% since 2005 in Africa.
Poor transport infrastructure and traffic congestion continues to be a serious issue for the ecommerce sites as well as the logistics companies they have partnered with for deliveries. The poor quality of road and rail networks forces companies to transport most of their cargo by air increasing the cost to customers.
The cost of moving goods in Africa can represent 50-75% of the retail price of goods. Firms are trying to circumvent the transportation crisis by using drones to make deliveries.
At least 1.000 applicants are seeking regulatory approvals to operate unmanned aerial vehicles for film shooting, relief services and other commercial purposes from the Kenya Civil Aviation Authority.
The delay in approving use of drones has been occasioned by the National Security Advisory Committee which is yet to okay the regulations on commercialisation of the aerial devices which will limit civilians to flying them at a height of not more than 400 feet.
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