Africa’s small and medium-sized businesses are the driving force behind the continent’s economy. They create jobs, drive innovation, and move trade. But this growth often hits a logistics roadblock. According to Nelson Teixeira, managing director of Operations for sub-Saharan Africa at FedEx the South African logistics industry is at a critical juncture where improved infrastructure, technology and bureaucracy are vital to ensure the continent’s success as a global logistics player.

“Many SMEs striving to reach regional or international markets see every shipment as a potential challenge,” says Teixeira. “Missed deadlines mean lost sales, extra costs pile up. Customers, and the economy in general, get frustrated.”

With evolving customer expectations for on-time deliveries, transparency, and reliability, there is a need for the modernization of logistics operations from both government and industry to strengthen international trade. 

A new World Bank report reveals that transportation inefficiencies are causing significant food losses in Africa. Around 37% of locally produced food is lost in transit due to slow processing times, poor infrastructure, and non-tariff barriers. Initiatives like the African Continental Free Trade Area (AfCFTA) aim to reduce trade barriers, but without improvements in logistics, many small businesses remain locked out of larger markets.

Fortunately, digital tools are starting to level the playing field. “Real-time tracking lets businesses know exactly where shipments are,” says Teixeira. “Online customs platforms reduce errors and speed up approvals. Flexible delivery options give SMEs more control. Now you get less uncertainty, faster trade, and endless opportunities for small businesses.”

Tools like automated customs clearance software, cloud-based shipment tracking, and integrated e-commerce shipping platforms are helping SMEs gain visibility and control over their supply chains. Even basic digital solutions can shave days off delivery times and reduce errors, enabling small businesses to plan with greater confidence.

Affordable and reliable delivery networks are another game-changer. Where SMEs may have historically struggled to reach regional or global customers, they can now expand without inflating delivery costs. Digital platforms and integrated networks allow them to compete with bigger firms on speed, service, and reliability – a fact that Teixeira believes will continue to transform this sector.

However, challenges are in no way uniform across the continent. Landlocked countries face longer transit times and higher costs, while sectors like perishable goods and e-commerce face unique pressures. Addressing these sector-specific issues requires both flexible delivery networks and targeted digital solutions.

In South Africa, government has committed to modernizing key logistics infrastructure and regulatory frameworks through the National Freight Logistics and Roadmap. This roadmap aims to turn policy commitments into reality by introducing radical structural reforms and opening up space for private sector investment. 

Efficient logistics are the lifeblood of SME growth. Public-private collaboration is essential to addressing these crucial infrastructure barriers. SMEs relying on a trusted logistics provider allows them to move goods faster and navigate trade processes more easily.

The takeaway is simple: the current logistics landscape on the continent doesn’t have to be a barrier. With the right provider, smarter supply chains, and a government that is committed to actionable change, African SMEs will fuel the continent’s next wave of economic growth.