Africa’s e-Logistics platforms are expanding across the continent looking to streamline cross-border supply chains.
In a region of 17 landlocked countries embedded in long and often complex supply chains, the continent faces a number of unique logistical challenges.
Companies like Ghanaian startup Jetstream, which announced Tuesday (Jan. 10) that it secured $13 million in a pre-Series A funding round, are looking to tackle those inefficiencies by digitizing African logistics networks and connecting importers, exporters and freight companies.
Jetstream’s platform enables importers and exporters to book shipping across air, sea and land freight, as well as access trade finance and insurance, all through a single digital interface.
To create its integrated logistics solution, the startup has also forged several partnerships. For example, Societe Generale provides some of the capital used to finance trades while pan-African digital insurance broker Lami helps provide coverage for Jetstream’s clients. FinTech firm MFS Africa is another partner taking care of cross-border payments.
Another African firm that collaborates with Jetstream on logistic services is Ivorian company Kamtar, a digital marketplace for road transport services in West Africa which customers can use to book one of 8,000 multipurpose trucks.
Like Jetstream, Kamtar deals with insurance and payments, while providing a single digital interface from which clients can manage logistics and track their goods in transit.
To help keep trade flowing, Kamtar offers carriers, which range from independent truckers to large fleet operators, an advance upon verification of collection and full payment once they have unloaded at their final destination.
Kamtar’s model is similar to those being pursued by other eLogistics platforms looking to shake up the way African businesses access road freight services, while also helping drivers and fleet operators secure new business. Other players in the space include Lori Systems and AmiTruck from Kenya, as well as Nigeria’s Kobo360.
Marketplaces Digitize African B2B Commerce
In addition to the more pure-play logistics startups that have arisen in recent years, fully integrated end-to-end supply chain platforms are also proving popular.
B2B marketplaces have developed digital solutions that take much of the hassle out of juggling multiple suppliers and distributors by creating Amazon-style eCommerce and delivery platforms for businesses.
Instead of businesses having to shop around with multiple suppliers and having to stay on top of their various delivery partners, the new generation of B2B eCommerce platforms are simplifying procurement processes for African companies while looking to add value with the addition of payment and credit services.
From the hospitality sector to big business corporate procurement, B2B firms like Wasoko, Dooka and Vendease are increasingly leveraging their position as key middlemen and trade enablers to collect data and build additional products and services that their business clients can benefit from.
As Tunde Kara, co-founder and CEO at Vendease, told PYMNTS, “data helps [restaurants and other food businesses] to run their businesses as efficiently as possible,” and the ability to “track everything they buy on our platform” means “there’s reduced waste [and] better management of how food flows within the organization.”
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