World Bank ranks Kenya second best in logistics on the continent after SA
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Construction works of the standard gauge railway in Voi. Improved performance of Kenya’s transport facilities is set to lift the country’s external trade profile. PHOTO | FILE
By Annie Njanja
Posted Tuesday, June 28 2016 at 16:48
In Summary
- The bank’s Logistic Performance Index (LPI) released yesterday ranks Kenya at position 42 globally after it scored an average score of 3.33 points.
- By comparison, the survey ranks Uganda and Tanzania at positions 58 and 61 respectively. Uganda has an average score of 3.04 while Tanzania has 2.99 points.
The World Bank has classified Kenya as the best logistics performer in East Africa as continued removal of administrative controls and improved infrastructure pay dividends.
The bank’s Logistic Performance Index (LPI) released yesterday ranks Kenya at position 42 globally after it scored an average score of 3.33 points.
By comparison, the survey ranks Uganda and Tanzania at positions 58 and 61 respectively. Uganda has an average score of 3.04 while Tanzania has 2.99 points.
The LPI rates performance from one (worst) to five (best) based on data collected from more than 1,200 professionals from 160 countries.
Kenya’s logistics performance is second on the continent after South Africa which took position 20 in the global survey with a score of 3.78.
The LPI shows that the country has greatly improved trade flow and reduced the cost of doing business for importers and exporters.
“Efficient logistics connects firms to domestic and international markets through reliable supply chain networks”, the World Bank says in a report titled Connecting to Compete 2016 which it released yesterday
It continues: “Conversely, countries characterised by low logistics performance face high costs, not merely because of transportation costs but also because of unreliable supply chains, a major handicap in integrating and competing in global value chains.”
The bank acknowledges that supply chains may be complex but insists their performance is largely dependent on country characteristics, “especially the soft and hard infrastructure and institutions that logistics requires to operate well, such as imports, regulations, procedures, and behaviours.”
Improved performance of Kenya’s transport facilities is set to lift the country’s external trade profile. A seaport state, Kenya has faced competition from Tanzania, Eritrea and Djibouti which are all eying landlocked countries in the region.
The number of police checks have dropped on the Northern Corridor, same as weighbridges which are now four, down from six.
The government automated the Mariakani weighbridge to cut on time used in clearance and to do away with cases of corruption — factors that have facilitated inland and foreign trade and Kenya’s competitiveness in a global platform.
Kenya has also recently automated the issuance of the certificate of origin. The LPI says rapid improvements can be achieved regionally if countries have a strong political will and align their efforts to implementing administrative reform.
anjaja@ke.nationmedia.com
