The transportation and logistics industry in Africa is at a pivotal crossroads. As global sustainability efforts intensify, companies across the continent must adapt to greener practices despite challenges such as outdated infrastructure, high costs and regulatory uncertainties. A recent webinar on sustainable practices, hosted by Creamer Media Webinars in partnership with dmg events Transport Evolution Africa, provided valuable insights into how African companies can transition toward more sustainable operations while balancing economic realities.

University of KwaZulu-Natal Chair and Director for the KZN DoT in Sustainable Transportation Professor Mohamed Mustafa outlined the slow and uneven progress in Africa’s transport and logistics industry.

“Many companies have begun adopting greener technologies but still view sustainability as a costly side project rather than a core business strategy. Challenges such as outdated rail systems, heavy reliance on fuel-powered vehicles, and regulatory hurdles further slow the transition,” he pointed out.

However, sustainability is increasingly seen as a survival tactic rather than an optional initiative, with policies like the Carbon Tax Act encouraging companies to cut emissions.

Nigeria-based Emzor Pharmaceutical Industries Group Head for Supply Chain Ikponmwosa Egharevba highlighted the innovation and drive toward sustainability in South Africa and other African nations.

“The Paris Agreement and advancements in renewable energy, including electric and hydrogen-powered trucks, are significant catalysts for change,” he said. “However, the high costs associated with these technologies, coupled with the slow implementation of supportive policies, remain substantial barriers.”

The transition from electric to hydrogen-powered trucks, in particular, poses financial challenges, with many companies still heavily reliant on traditional diesel-powered fleets.

Danish shipping and logistics company A.P. Moller – Maersk Head of Logistics & Services Procurement Sophia Sibanda emphasised practical strategies for minimising the industry’s carbon footprint.

“Key measures include route optimisation and the adoption of Transportation Management Systems to reduce fuel consumption and emissions. Asset-light strategies, which involve optimising fleet sizes and avoiding unnecessary expansion, can also contribute to sustainability,” she said.

Climate leadership group C40 Cities Head of Zero Emission Freight Lusanda Madikizela reinforced the need for waste minimisation across operations, from route planning to packaging and vehicle size optimisation.

Meanwhile, moderator Joshua Low, from organiser dmg events, prompted panelists to provide guidance on the initial steps companies should take toward sustainability.

Madikizela advised setting clear sustainability targets aligned with long-term business objectives. Sibanda recommended starting with simple actions such as improving route planning and waste management before gradually scaling up efforts. Both emphasised the importance of appointing a dedicated team or sustainability officer to oversee initiatives and drive change.

Policy and Legislative Frameworks for Sustainability

Madikizela discussed the crucial role of government policies in fostering sustainable practices. “Financial incentives and regulatory support are essential to encouraging companies to transition to greener operations,” she noted.

Legal advisor Pinsent Masons Legal Director Margo-Ann Werner underscored the need for policy certainty to provide businesses with a clear roadmap for sustainability efforts. The panelists further highlighted South Africa’s green transport strategy as an existing framework aimed at reducing greenhouse-gas emissions and promoting eco-friendly transport solutions.

Werner detailed the competitive advantages of sustainable business practices, noting that “companies that prioritise sustainability can gain preferential access to certain markets and enhance their brand reputation among environmentally conscious consumers”.

“Moreover, aligning with sustainability goals can improve access to financing and investments, as many lenders now prioritise businesses that demonstrate a commitment to sustainability,” she said. Additionally, she noted that integrating green initiatives into corporate strategies can help attract and retain top talent, particularly among younger generations who value environmental responsibility.

Role of Technology in Sustainable Practices

Sibanda highlighted the transformative impact of technology in driving sustainability, pointing out that innovations such as alternative fuels, green technologies and renewable-energy sources are revolutionising the industry.

“AI and machine learning play a critical role in optimising logistics operations and reducing emissions. Examples of emerging technologies include hydrogen fuel cells, lithium battery-operated trucks, and solar and wind energy solutions. However, the widespread adoption of these innovations requires a comprehensive evaluation of both cost implications and environmental benefits,” she noted.

Meanwhile, the feasibility of achieving net zero emissions in Africa remains a topic of debate. Mustafa argued that while net zero is a commendable goal, it must be approached realistically, considering economic constraints. “Gradual steps such as improving fuel efficiency and investing in cleaner technologies are essential for progress,” he said.

Egharevba stressed the importance of energy transition, infrastructure development and public-private partnerships in achieving sustainability goals, while Sibanda emphasised the need for equity in the transition process, urging larger corporations to support smaller businesses in their sustainability efforts.

Further, geopolitical dynamics play a crucial role in shaping sustainability efforts. Mustafa noted how events such as the US’s withdrawal from the Paris Agreement have influenced global sustainability policies, but that the European Union’s firm commitment to sustainability presents opportunities for African companies to align with international trends and potentially replace American firms in the European market.

The panellists agreed that the transition to sustainable practices in Africa’s transportation and logistics sector presents both challenges and opportunities.

“While infrastructure limitations and financial constraints pose hurdles, companies that embrace sustainability can gain long-term economic and competitive advantages,” said Low.

Through strategic investments, supportive policies and technological innovations, the industry can achieve a more sustainable and resilient future. As sustainability becomes an imperative rather than an option, African transport and logistics companies must take proactive steps to stay ahead in the global market.