The latest global Logistics Performance Index (LPI) report released by the World Bank has revealed that South Africa, Egypt, Benin Republic, Botswana, Namibia, Djibouti, and Rwanda are better rated than Nigeria in terms of their ability to move goods across borders with speed and reliability.
The report, titled “Connecting to Compete 2023: Trade Logistics in an Uncertain Global Economy,” covers 139 countries and measures the ease of establishing reliable supply chain connections and the structural factors that make it possible, such as the quality of logistics services, trade, transport-related infrastructure, and border controls.
South Africa was ranked as the best in Africa and 19th in the world with a score of 3.4 percent, followed by Botswana and Egypt, which scored 3.1 percent each to place a joint 57th position globally. Benin Republic and Namibia are in the 66th position, while Rwanda is in the 73rd spot, and Djibouti (79th) is clearly rated ahead of Nigeria (88th) in the World Bank LPI report. Congo Democratic Republic, Guinea Bissau, Mali, and Nigeria share the 88th spot among the 139 countries assessed.
Nigeria posted 2.6 percent on customs, 2.4 percent on logistics infrastructure, 2.5 percent on international shipments, 2.3 percent on logistics competence and quality, 3.1 percent on timeliness, and 2.7 percent on tracking and tracing. The Nigeria Customs Service was also rated 90th among the 139 countries, behind their South African and Beninoise counterparts, ranked at 31st and 65th positions, respectively.
The report highlights the crucial importance of resilience and reliability in the performance of logistics. According to the Global Director for Trade, Investment, and Competitiveness at the World Bank, Mona Haddad, “Logistics is the lifeblood of international trade, and trade, in turn, is a powerful force for economic growth and poverty reduction.” The LPI helps developing countries identify where improvements can be made to boost competitiveness.”
The LPI 2023 report revealed that end-to-end supply chain digitalization, especially in emerging economies, is allowing countries to shorten port delays by up to 70 percent compared to those in developed countries. Moreover, demand for green logistics is rising, with 75 percent of shippers looking for environmentally friendly options when exporting to high-income countries.
The report also noted that most time is spent shipping, adding that the biggest delays occur at seaports, airports, and multimodal facilities. Policies targeting these facilities can help improve reliability, including improving clearance processes and investing in infrastructure, adopting digital technologies, and incentivizing environmentally sustainable logistics by shifting to less carbon-intensive freight modes and more energy-efficient warehousing.
The LPI report provides valuable information for policymakers and stakeholders involved in the logistics industry. It helps identify areas where countries can improve their logistics performance, thereby enhancing their competitiveness in the global marketplace.
