How Can African Ports Overcome Structural Challenges?

In the previous article, we explored common challenges faced by the African ports sector, which, though multifarious, are often interrelated and create a self-perpetuating cycle. For example, lack of finance to fund port projects is the cause of poor infrastructure and outdated equipment, which in turn adversely impacts productivity and efficiency levels, which then deter Carriers from calling at the port and the EXIM community from utilising the port, making it difficult for the port authorities to raise finance for upgrades and expansions (due to uncertain financial viability and future prospects).

Cumulatively, these factors constrain the growth of the ports sector, acting as an impediment to African trade and preventing economies therein from achieving their latent potential.

A careful perusal of the nature of these challenges makes it abundantly clear that some are controllable while others (the extrinsic ones, emanating from macroeconomic and geopolitical developments) are beyond the port’s control.

This article examines the initiatives that ports and terminals can undertake to overcome these challenges, as well as steps to mitigate the impact of macro-level and geopolitical factors.

This article is the first of