Since 2015, the United Nations has been working toward Sustainable Development Goal 7 (SDG7), which aims to ensure access worldwide to affordable, reliable, sustainable, modern energy. SDG7 has particular relevance for sub-Saharan Africa, where 75 percent of the population lacks reliable access to electricity. The burgeoning economy is trying to attract investment, which is one reason why 24-7 power and connectivity are key to warehousing in Ghana, Mozambique, and Cote d’Ivoire.

Companies looking to do business in sub-Saharan countries such as Ghana, Mozambique, and Cote d’Ivoire need dependable power to support their logistics. As organizations embrace automated solutions and use data to drive their operations, they also want reliable digital connectivity. Electricity and internet go hand-in-hand in modern supply chain and warehouse management. That’s why 24-7 power and connectivity are key to warehousing in Ghana, Mozambique, and Cote d’Ivoire.

How 24-7 power and connectivity in Ghana, Mozambique, and Cote d’Ivoire warehousing modernize warehouse operation

According to the African Development Bank, Africa faces the largest man-made barriers to trade of any region in the world. Despite the obstacles, the US and other governments have pledged to continue economic engagement with African countries committed to self-reliance.

Importance of 24-7 power and connectivity in the supply chain

The purchasing power of Africa is growing rapidly, with a consumer market predicted to reach US$2.1 trillion by 2025. In the first ten months of 2021, US exports to Africa have increased 32 percent, and trade between China and African countries increased 40.5 percent in the first seven months of 2021.

Part of self-reliance involves the development of dependable electricity, which in turn lays the foundation for internet connectivity and industrialization. Internet access is especially critical to the development of e-commerce as well as construction of smart warehouses.

Smart warehouses

A warehouse management system that uses equipment and computers, instead of humans, to complete fulfillment and other operations is known as a smart warehouse. In other words, warehouse automation handles repetitive tasks, improving efficiency throughout the supply chain.

Although the US leads the world in warehouse automation, less-established markets such as the Philippines and Indonesia are catching up, according to the real estate firm JLL. Could the emerging markets of sub-Saharan Africa eventually follow suit?

Internet upgrades

In order to function, a smart warehouse must be able to connect to a 5G network. Reliable, secure internet is another reason why 24-7 power and connectivity are key in Ghana, Mozambique, and Cote d’Ivoire, and warehousing.

Already, high-speed subsea cables are improving connectivity for African coastal cities. In fact, a new submarine cable system across the Atlantic, MAREA, connects its hub in Spain directly to West Africa. This will facilitate high-speed data connections for warehouses in Abidjan as well as in Accra.

Digital infrastructure

According to the Financial Times, African countries are among the fastest-growing internet markets in the world. This presents opportunity for companies that wish to lease warehouse space in high-growth Ghana, Mozambique, and Cote d’Ivoire. Interest in digital transformation is on the rise.

Advantages to 24-7 power and connectivity

Technology plays a role in facilitating the movement of goods in the African supply chain. In smart warehouses, automation and proactive inventory help streamline warehouse operations.

Plus, 24-7 connectivity speeds the transition from paper to electronic documentation, optimizing the supply chain. The automation and digitization of routine tasks also eliminates the middleman, which reduces the potential for corruption in facilitating the passage of goods.

How to identify challenges in 24-7 power and connectivity in Ghana, Mozambique, and Cote d’Ivoire warehousing

In Ghana, power outages are so frequent that there’s actually a word for them in Akan, a language spoken widely there. The word, “dumsor” (pronounced doom-sore), roughly translates to “off-and-on.”

Shortages in power supply

Like in many nations of sub-Saharan Africa, demand for electricity in Ghana outpaces supply. The country has made significant progress in increasing electricity generation and access over the last ten years. However, the electrical grid continues to experience high distribution losses.

Specifically, Ghana experienced a 23 percent distribution loss in the World Bank’s most recent analysis. This means that 23 percent of electrical output in Ghana did not get to consumers. Other nations in sub-Saharan Africa, such as Mozambique and Cote d’Ivoire, fared slightly better, with distribution loss percentages of 15 and 14 percent respectively. By comparison, both the United States and United Kingdom experienced distribution loss in the single digits.

Need for reliable power

Unreliable power can cost companies up to 31 percent in lost revenue, according to a Center for Global Development study. Specifically, companies involved with perishable goods must have consistent power in order to use cold storage. Otherwise, a power failure in a warehouse can destroy a company’s inventory and disrupt the supply chain.

One potential solution is the decentralization of energy grids, according to the US Agency for International Development. For one thing, solar- and wind-generated power can circumvent central electrical grids that may still be in development. In general, smaller, decentralized energy grids can help reduce cost and increase availability.

How to implement 24-7 power and connectivity in Ghana, Mozambique, and Cote d’Ivoire warehousing

To solve the issue of distribution loss and related issues, the United Nations is encouraging access to clean fuel and technology. Slowly, investment in support of clean energy is increasing.

Finding solutions through technology

The United Nation’s Sustainable Energy for All initiative reports a 46 percent increase in international financial flows to developing countries in support of clean energy between 2010 and 2018. Furthermore, it is developing countries that are installing the majority of new renewable capacity, specifically solar and wind technologies.

Recognizing the importance of why 24-7 power and connectivity are key in Ghana, Mozambique, and Cote d’Ivoire warehousing, Agility features renewable energy in all its warehouse designs. For example, Agility warehouses feature solar panels on rooftops as well as wind-driven roof fans. Skylights reduce the need for lightning electricity during the day. And indoor and outdoor LED lighting reduces energy use as do solar-powered street lights.

Managing cost

A study published in the journal Energy Economics in 2012 found that it would require a US$160–$215 billion investment to provide consistent electricity to sub-Saharan Africa. Since then, the International Energy Agency has found that the least expensive way to achieve universal electricity access is to use renewable energy sources.

Cultivating local employees

The emphasis on 24-7 power and connectivity in warehousing has helped Agility attract skilled staff. Its well-lit, attractive warehouses appeal to potential local workers.

In turn, this helps benefit the economy by improving employment opportunities, since Agility hires locally for its logistics parks. This directly contributes to the growth of a skilled local workforce, which eventually feeds back into local modernization efforts to upgrade infrastructure and bridge the digital divide.

How 24-7 power and connectivity in Ghana, Mozambique, and Cote d’Ivoire warehousing support African supply chains

In 2021, the African Continental Free Trade Area (AfCFTA) launched, boosting intra-African trade. AfCFTA creates a unified market of 1.2 billion people with a combined gross domestic product of $3 trillion. As a result, warehousing in Ghana, Cote d’Ivoire, and Mozambique affects other African countries as supply chains become more interconnected through the removal of trade barriers.

Importance of modern warehouses in the supply chain

Modern warehouse facilities help drive economic growth, creating the conditions for highly efficient supply chains, the CDC Group reports. In particular, Grade-A warehousing supply businesses with the infrastructure they need to grow. The Agility Logistics Park in Mozambique, for example, features warehousing with round-the-clock power, reliable internet connectivity, electrical power, and backup.

As a result, local and international companies have leased warehouse space. Oil and gas, automotive, electronics, and other companies use the facility for distribution, storage, assembly, and processing.

Cultivation of business opportunities along the supply chain

Stable power and internet form the backbone of supply chain management in the region. For instance, the French hypermarket chain Carrefour is expanding in southern Africa on the ground and in e-commerce.

The CDC Group report found that Grade-A warehousing improved tenants’ ability to scale and resulted in improved margins. For example, companies using Grade-A warehouses saved 45–60 percent on storage cost per pallet. Companies also reduced turnaround times and significantly reduced inventory losses.

Development of untapped resources to stabilize the supply chain

Mozambique experiences one of the largest electricity access deficits among countries in sub-Saharan Africa, according to Science Direct. However, the country is rich in renewable energy resources with the potential to become a regional energy hub, Science Direct found. Opportunities for investment and rapid economic development abound, holding promise for a robust supply chain.

How to find out more about warehousing in Ghana, Mozambique, and Cote d’Ivoire

Power and connectivity in the region are slowly improving. Contact Agility today to find out more about why 24-7 power and connectivity are key in Ghana, Cote d’Ivoire, and Mozambique warehousing. Agility’s logistics parks can solve your reliability questions and provide solutions in warehouse management.

The physical and geographic features of a commercial real estate property determine its value. Rather than listing a long series of features, agents and brokers can summarize this value with a classification system ranging from A to C. At the high end are international-standard Class A warehouses.

More than simply storage buildings, international-standard Class A warehouses are the linchpin in modern, efficient supply chain logistics strategies. Read on to learn more about the characteristics and benefits of state-of-the-art Class A warehouses, the difference between a Class A warehouse and a Class A facility, and how to choose a Class A warehouse.

Characteristics of an international-standard, Class A warehouse

In short, international-standard Class A warehouses are state-of-the-art properties built specifically for warehousing and logistics. They have not been converted or renovated for this purpose. They are designed and built from the ground up to benefit the supply chain.

Before delving further into Class A characteristics, a brief look at other levels might prove helpful. A step down from Class A is Class B. Such a building may be a little older but renovated to have the latest and greatest technology. It will also have lower ceilings than a Class A building and may have multiple floors, which is not ideal for warehousing.

Class D and Class C buildings fall at the low end. They are typically older buildings converted from their original purposes, such as former hangars and manufacturing facilities. They often lack modern amenities, such as climate control and accessibility.

Building specifications and materials

Noncombustible or fireproof raw materials, flexibility, and mobility are essential aspects of Class A warehouse construction. Steel and sealed concrete are the most common structural elements with the possible addition of masonry, plaster, gypsum, or other noncombustible materials. Note that sealing concrete is essential to reduce dust that can cause wear and tear on equipment.

Glass, ceramic or stone tile, and stucco can enhance the aesthetic value of interior and exterior walls. Few people want to work in a bare steel and concrete box.

The warehouse might store a variety of inventory with different storage needs. To accommodate these needs, a Class A warehouse will have ceilings at least thirteen meters high, support columns at least twelve meters apart, and spans of at least twenty-four meters.

And that’s just inside the building—what’s outside is just as important. It must have at least one automatic docking gate for every five hundred square meters of interior space and sufficient outdoor space to maneuver large trucks and for employee parking.

Warehousing innovation

Technology and innovation are increasingly important in warehousing logistics. Four walls, support structure, and a roof are no longer sufficient. At a minimum, a Class A warehouse includes climate control, fire safety features, security monitoring and alarms, high-speed internet, and an electrical substation.

Beyond those requirements, automation is the future. An automated warehouse will include tech-based solutions such as drones that easily reach the highest shelves, robots (or “cobots” that work alongside humans), composite panels that improve the building’s energy efficiency, and more. Smart warehouses make smarter, more agile supply chains.

Location, location, location

The old adage that location is everything in real estate is particularly true with warehouses. Class A warehouses are located at the confluence of airports, railways, ports, and highways for quick access to major domestic and export markets.

Other building classes might not be as ideally located if their region has grown and changed since their construction. For example, industrial facilities built before 2000 are often converted and renovated, but they might be gridlocked within cities that have grown up around them.

Benefits of an international-standard, Class A warehouse

Because Class A warehouses are built specifically to suit a modern supply chain, the benefits are innumerable, ranging from optimized retail logistics to sustainability to safety. A few highlights include reduced carbon footprint and increased efficiency and accuracy.

Reduced carbon footprint

Inefficient heating and cooling systems—such as those you might find in a Class C building—mean high carbon emissions. Just by virtue of being new construction, Class A warehouses have the proper insulation and roofing materials to maximize indoor climate control.

Green warehouse design is also a common feature in Class A warehouses. Such sustainable design might include solar panels for alternative energy, skylights for daytime lighting, LED bulbs to reduce electricity consumption, xeriscaping to reduce water usage, and regionally sourced building materials to reduce transportation-related emissions. Individually and collectively, these features reduce the building’s carbon footprint.

Finally, a prime location reduces transit times and fuel use, giving you both increased efficiency and a reduced carbon footprint.

Increased efficiency and accuracy

Many of the features built into Class A warehouses increase efficiency right from the start. Smart warehouse management can then further reduce warehousing challenges and inefficiencies.

Optimal warehouse layout and layout flexibility, in particular, are huge time savers. High ceilings and wide spaces between columns and spans provide this flexibility. Stacking shelves higher puts related products in closer proximity. Wider aisles give people and equipment more room to maneuver quickly and safely.

Creating and adapting your rack design to your particular workflow ensures optimal movement throughout the space. A flexible layout also allows you to reorganize as inventory changes with supply and demand.

Zoning, both inside and outside the warehouse, is another important aspect of efficiency enabled by Class A space. With more automatic docking gates, some gates can be dedicated to receiving and others to dispatching to reduce traffic jams. Positioning popular products in proximity to dispatch areas gets them to market faster.

And as we all know, haste equals waste. Employees have more time to do their jobs thoroughly and effectively when efficiency is increased. Paired with warehouse automation, errors and waste are minimal.

Class A warehouse versus Class A facility

Unfortunately, building classification isn’t always consistent from market to market, and confusing language sometimes arises. Commercial real estate agents use the Class A designation on a variety of facilities, such as office space, light industrial space, distribution centers, and even warehouse space that doesn’t quite meet the criteria of a Class A warehouse.

In the case of warehouses in particular, distinguishing between these types of buildings is important. A large space dubbed a Class A “facility” instead of “warehouse” might have lower ceilings (at least ten meters instead of thirteen), which reduces options for shelving, and fewer automatic docking gates (one for every seven hundred meters of interior space instead of five hundred).

While these differences may seem small, each amenity can impact effective warehouse management and inventory management. In either case, however, “Class A” designates best-in-class property, and warehousing innovation can happen in a variety of settings.

How to choose a Class A warehouse

The first step in choosing a Class A warehouse is asking yourself and your team the right questions and sharing that information with your internal or external commercial real estate team. Here are just a few of the questions to consider:

• What functions will you perform on this property? Will it simply serve as well-staged storage for your company’s internal use? Will it be a distribution center with order picking, packing, and processing? Will you need co-located manufacturing facilities? Will you need a designated area for office space?
• How much space do you need now and in the next five to ten years? (Remember to plan for your success.)
• What type of inventory will you store and process, and will these goods have specialized storage needs, such as refrigeration or reinforced rack design?
• Do you already have a warehouse inventory management system, or do you need help creating one?
• How will you maximize warehouse efficiency? If you aren’t sure, consider consulting one of Agility’s experts.
• What warehouse technology and automation would be nice to have, and what do you absolutely require to meet your goals?
• What warehouse layout will you need to maximize traffic flow and safely maneuver people and equipment?
• Do you need rack design consultation?
• What location optimally positions your goods for your supply chain needs?
• What security features do you require to protect your assets (people and products)?
• Do you need a bonded warehouse or bonded space within a warehouse to manage dutiable goods?
• What’s your budget? Be sure to factor in how the features and benefits will offset your warehouse space’s costs.

Your answers will help determine the class of warehouse you truly need and prioritize the features and benefits of each promising property identified in your search.

Warehousing solutions simplified

Agility Logistics Parks designs, engineers, and operates the most advanced international-standard warehousing complexes and light industrial facilities in emerging markets. Our flexible solutions are ready. Contact our team to begin your search for an international-standard, Class A warehouse in the Middle East, Africa, or South Asia.

Mining companies in Ghana face complex and unique logistics challenges. From safely transporting different types of raw material to complying with various rules from Ghanaian government agencies, entering the Ghanaian mining community is not an easy task. 

The mining industry requires localized, integrated logistics solutions while operating in Ghana, and logistics parks may be the answer. By investing in these facilities, mining companies can reduce capital expenses, improve sustainability, and de-risk entry and expansion into West Africa.

This article will discuss logistics parks as ideal for gold mining companies in Ghana, their features, and how Agility Logistics Parks can help streamline the mining supply chain.

Features of logistics parks for mining companies in Ghana

Mining is a labor- and resource-intensive operation. Companies need space to store large, expensive mining equipment, manage inventory, and transport heavy materials to various ports. Managing these daily activities can be challenging without the proper infrastructure.

Using legacy supply chain systems, a mining company can harm efficiency and struggle to stay competitive. However, logistics parks streamline these complex processes so companies can focus on growth and innovation.

The current state of mining company logistics in Ghana

As of the second quarter of 2021, Ghana’s mining and quarrying sector contributed 4.9 billion Ghanaian cedis to its gross domestic product. The West African country is the largest producer of gold on the continent and a major producer of valuable materials like bauxite, diamonds, and manganese. There is also ample columbite-tantalite, feldspar, iron ore, limestone, quartz, and salt deposits. 

The mining industry is an economic pillar, and there are several gold companies in Ghana. Since the 1980s, Ghana’s mining production and logistics have been privatized, which has led to flourishing foreign investment. With this, significant infrastructure is available to support mining companies’ supply and distribution needs, including logistics parks. The best logistics facilities enable easy access to major airports, seaports, roads, rail networks, and capital cities.

For example, the Agility Logistics Park (ALP) in Ghana is in the Tema Free Trade Zone, a major industrial city in the country. Tema is approximately twenty-four kilometers from the Kotoka International Airport in Accra, Ghana’s capital.

The 165,000-square-meter facility is adjacent to the Tema-Aflao road, part of a central corridor connecting Abidjan, Côte d’Ivoire, to Lagos, Nigeria. Additionally, the ALP is close to the Port of Tema, the largest seaport in Ghana, covering over 3.9 million square meters.

Benefits of logistics parks over legacy supply chain infrastructure

Historically, mining companies have managed their value chain across separate divisions, leading to siloed operations. Rather than host all supply chain activities for a region in one location, distributed teams manage individual tasks.

As a result, many mining companies face bottlenecks, poor communication, and other challenges while trying to stay ahead in a rapidly changing industry. However, logistics parks can help break down these silos and facilitate faster innovation and growth.

Logistics parks are large facilities that offer key amenities to support companies’ operations, including warehousing, laydown space, and even on-premises corporate offices. These modern facilities provide the storage, processing, and warehousing space mining companies need.

By investing in a logistics park, mining companies gain access to valuable features and amenities, including the following:

• Ample storage and warehousing space: Mining equipment can be large and heavy. Logistics parks provide ample and secure storage space for this equipment and raw materials. These facilities also include laydown space for temporary storage.
• Inventory planning and supply chain streamlining: Logistics parks enable a better way of managing inventory and supply. 
• Waste management services: For mining companies, the safe disposal of waste is a key regulatory consideration. Many logistics parks have full waste management and recycling services to support their operations and drainage systems.
• Full security: Many mining companies must invest in their security services, which can be expensive. Logistics parks feature fully secure and walled compounds and CCTV monitoring systems, preventing unauthorized users from entering controlled facilities.
• Data centers and IT infrastructure: Modern mining companies are more digitally connected than ever. As a result, the industry requires a fast, secure data infrastructure. Some logistics parks provide mining companies with data centers and other key technologies, providing complete supply chain visibility.
• Better connectivity: Logistics parks are typically situated in industrial belts near important airports and ocean ports. Because of this, companies operating in logistic parks benefit from maximum connectivity required to foster business growth.

Environmental benefits for mining companies using logistics parks in Ghana

Global mining companies face tight restrictions and increased pressure from governments, investors, and the public to reduce environmental harm. Mining news in Ghana points to these challenges. 

Mining has contributed to severe environmental damage in Ghana, particularly affecting water bodies. The country’s per capita availability of water resources decreases every day due to pollution from illegal mining and extraction-related waste. That has made it an urgent priority to clamp down on illegal mining in Ghana. 

The quarry and mining industry has also contributed to significant air pollution and land degradation in Ghana, affecting agricultural activities and public health. In response to the environmental impact, the Ghanaian government has implemented strict regulations for mining companies across the country.

It is crucial for mining companies to search for sustainable solutions when expanding into markets like Ghana. This fact has been long recognized, but most attempts to lessen the sector’s environmental impact have been internally focused. Mining companies are called to achieve corporate sustainable solutions, socially-sound practices, and environmental thinking to improve their supply chain and logistics design. 

By investing in infrastructure at a logistics park, the mining industry can facilitate regulatory compliance, as well as reduce its overall carbon footprint.

For example, the Agility Logistics Park in Ghana offers the following sustainability benefits:

• The ALP is close to major roads, seaports, and other distribution networks, reducing the distance that mining companies need to drive to transport their materials. This maximizes a company’s distribution efficiency as well, saving money.
• Agility Logistics Parks operates sustainable infrastructure to reduce environmental impact. Solar panels reduce energy costs and consumption, helping mining companies commit to sustainable change.
• Mining companies also have full waste management services when they invest in the ALP, helping them safely dispose of mining waste. Additionally, Agility Logistics Parks includes full recycling zones, helping further reduce carbon emissions.

These sustainable initiatives not only help companies reduce their environmental impact but also help them save money. In one case, Agility Logistics Parks helped increase a customer’s reuse rate from 47 percent to 72 percent through efficient waste management, unlocking $78,000 in savings.

How mining companies can find the right logistics park in Ghana

Logistics parks are ideal solutions for mining companies operating in Ghana. To find the right facility to support their operations, the Ghanaian mining community must consider compliance requirements, amenity availability, and options for sustainability.

There are several laws and regulations that mining companies must follow in Ghana. For example, the Minerals and Mining Act of 2006 is the primary piece of legislation governing the industry. This Act sets rules for mineral rights, small-scale mining, and other activities.

The Ministry of Lands and Natural Resources holds overall responsibility for the mining industry, while the Environmental Protection Agency sets environmental regulations. For example, mining companies must renew environmental permits every eighteen months in Ghana and follow key waste disposal and storage regulations.

The mining community requires deep expertise and knowledge of Ghanaian mining regulations to select the ideal logistics park. Additionally, companies should look for key features such as ample storage space, strong security, and entire property and facilities management.

A logistics park should also offer IT infrastructure for maximum connectivity and sustainable practices to enable efficiency. However, many logistics facilities do not offer these key amenities.

Agility Logistics Parks works to ensure strong sustainability, compliance, and reliability across its facilities. By investing in space at the Agility Logistics Park, mining companies gain strategic access to valuable distribution hubs and complete value-added services to support their supply chain.

Mining companies using logistics parks in Ghana

The mining industry is highly visible in Ghana. The Ghana Chamber of Mines is an organization of representatives of mining companies in the country. Some of its Represented Members, who have commercial operations in Ghana, include Asanko Gold Ghana, Newmont Ghana Limited, Golden Star Resources, and Perseus Mining (Ghana) Limited.

Forward-thinking mining companies and related operations rely on logistics parks to power their operations. For example, a gold company in Ghana, Weir Minerals West Africa (Weir) provides industrial equipment, such as pumps and valves, to support some of the world’s leading mining operations.

Weir hosts its West African storage and office operations at ALP, enabling the company to execute critical services in one location. Weir also used ALP offerings to bring its facility into compliance, satisfying its parent company’s safety standards.

It’s clear that migrating to a logistics park can provide key benefits and amenities to mining companies. However, leaders often want to establish a business use case before investing in a facility. To compare legacy systems to integrated logistics parks, track the following metrics fully:

• Resource usage and efficiency
• Shipping and distribution costs
• Ease of inventory management
• Speed to market in Ghana
• Capital expenses
• 24/7 power and security

Expand into Ghana with Agility Logistics Parks

“Logistics parks as ideal for mining companies in Ghana” is more than a thought experiment. These integrated facilities are vital for mining in Ghana, promoting sustainability, efficiency, and continued growth.

If your mining company wants to expand into Ghana, you need a strong infrastructure to support your complex operations. The Agility Logistics Park in Ghana has the space, amenities, and industry knowledge you need. Visit Agility today to learn more about this sophisticated facility and discuss your next steps.

In January 2021, Africa officially became a single free trade zone. Headquartered in the Ghanaian capital of Accra, the African Continental Free Trade Area (AfCFTA) created the largest free trade area in the world, measured by number of countries. Africa’s 1.3 billion people and combined gross domestic product of more than US$3 trillion now connect in a single market for goods and services.

In addition to AfCFTA, the explosion of e-commerce as well as infrastructure development are driving demand for high-quality warehousing throughout the continent. Agility, for example, is developing more than one million square meters of warehousing in burgeoning industrial areas. This includes new facilities in the sub-Saharan capitals of Accra, Maputo, and Abidjan. So how do you know if you are getting value for your money in Ghana, Mozambique, and Cote d’Ivoire warehousing?

Rapidly, African countries are making strides in logistics management. Warehousing used to rely on makeshift “godowns” for the storage of goods. Godowns typically lack certain basic features, such as reliable power, internet connectivity, security and sophisticated fire prevention and safety. Now, the need for modern warehouses is on the rise. With increased attention on attracting foreign investment in many African countries, here’s how to know if you are getting value for your money in Ghana, Mozambique, and Cote d’Ivoire warehousing.

What to look for in warehousing in Ghana, Mozambique, and Cote d’Ivoire

Common types of warehousing options in Ghana, Mozambique, and Cote d’Ivoire include:

• Public warehouses: Owned and regulated by government bodies that charge rent.
• Bonded warehouses: Owned by government or private companies with a government license.
• Private warehouses: Owned and managed by manufacturers or by specialized developers and logistics parks operators .

Logistics parks

A logistics park is an area specifically designed to consolidate and centralize storage, distribution, processing, assembly, light manufacturing and other activities, that require warehousing. Modern logistics parks integrate easily with transportation networks so that goods move easily to and from intended markets.

Ready-built warehousing

Logistics parks feature pre-existing warehouse space, known as “ready-built warehousing,” which offers more predictable expenses. The landlord has already absorbed the cost of land, permits, and other regulatory requirements.

For example, CDCI, the largest retailer in Cote d’Ivoire, relocated to a ready-built warehouse in the  Agility Logistics Park near Abidjan. The move upgraded CDCI’s operations to international standards and helped streamline and modernize its storage facilities. Since the move, CDCI has reduced overall logistics costs and lowered the rate of theft.

Flexible leasing

Another advantage to ready-built warehousing is support for flexible leases and space allowing businesses to scale. A flexible lease allows you to use or let warehouse space according to need. Agility Africa, for example, offers flexible leases from six months to five years with sizes from 500 square meters to more than 10,000 square meters.

Infrastructure reliability

International standards include 24-7 security, plus consistent electrical power, all included in the lease. Security includes controlled access as well as constant monitoring of the facility. Plus, the warehouse features sprinkler systems and other fire-prevention measures.

Increasingly, world-class warehousing involves internet connectivity and dependable backup service. Reliable internet service provides access to inventory, data analytics and insights that your company can use to build a resilient supply chain.

Prime location

The UN Centre for Trade and Development estimates that there are currently more than 180 special economic zones (SEZs) in Africa, with 51 more under development. SEZs are areas that provide tax incentives in exchange for a company’s investment. Many African governments are facilitating development of logistics parks within SEZs to attract foreign investors.

Ghana, for example, established the Ghana Free Zones Authority (GFZA) in 1995. The GFZA lets companies operate in certain zones without paying customs duties. The Agility Logistics Park in the Tema Free Trade Zone offers not only bonded warehousing in Ghana but also laydown yard. A laydown yard is an outdoor space within a warehouse area to store material and equipment, often convenient for mining companies as well as oil and gas businesses.

For instance, many international energy companies have set up shop in the Agility Logistics Park near Accra. Its warehousing meets international standards, important for oil and gas, mining, automotive, fast-moving consumer goods, and electronics companies.

Why invest in warehousing in Ghana, Mozambique, and Cote d’Ivoire

The World Bank’s Logistics Performance Index is a survey of operators who provide feedback on a country’s logistics “friendliness.” Its most recent scores revealed that countries in sub-Saharan Africa averaged a score of 2.20 out of 5 for logistics infrastructure. However, African countries are emphasizing infrastructure upgrades. In fact, the British property consultancy Knight Frank estimates US$400 billion worth of rail and road development is taking place across Africa.

Africa’s industrial corridors

African governments with the support of the World Bank are creating seven industrial corridors that connect African regions by rail, by road, and by sea. For example, the West Africa Growth Ring links Ghana, Togo, Burkina Faso, and Cote d’Ivoire. The West Africa Growth Ring has seven main ports, including Takoradi and Tema in Ghana as well as San Pedro and Abidjan in Cote d’Ivoire.

Elsewhere, the Nacala Corridor connects Mozambique, Malawi, Zambia, and Zimbabwe. It features the Nacala Railway, valued at US$4.4 billion. Also, its main port of Nacala, in Mozambique, is the deepest port in southern Africa.

The objective of Africa’s industrial corridors is to promote investment and development, laying the groundwork for more than a million square meters of purpose-built warehousing, Knight Frank predicts. Companies such as Agility have built logistics parks along these prime industrial corridors, offering ready access to major ports and roadways.

Growth of e-commerce

Even before the COVID-19 pandemic, the Economist Intelligence Unit had predicted e-commerce in Africa to drive a 3.2 percent increase in retail sales. The pandemic drove even greater economic growth in online goods, which in turn created a promising outlook for warehousing, according to a study by the Mace Group.

Specifically, online sales revenues across Africa increased by more than 28 percent from 2019 to 2020, according to Knight Frank. Furthermore, e-commerce revenue could nearly double to $46 million by 2025 from the 2020 value of $27 billion, creating further private sector demand for warehousing.

Return on investment

Africa’s increasing attraction to foreign investors is driving demand for logistics facilities such as warehouses. As a result, industrial assets such as warehouses offer an average 12 percent yield. That’s double the yield of residential and more than the 9 percent yield of retail or office space, according to Knight Frank.

How to identify potential hidden costs in warehousing

Despite the emphasis on attracting foreign investment, each African country differs in its regulations. That’s why relying on local know-how helps your company figure out how to know if you are getting value for your money in Ghana, Mozambique, and Cote d’Ivoire warehousing.

Careful land management

For instance, leasing warehouse space in an Agility Logistics Park avoids the potential pitfalls of identifying and purchasing the land yourself. The navigation of each individual local market throughout sub-Saharan Africa requires informed decision-making and in-depth knowledge of local regulations. Otherwise, taxes or other fees particular to the chosen location can cause unpredicted cost overruns.

Stability in pricing

Furthermore, land prices are rising due to declining availability of suitable, properly zoned and approved land combined with increasing demand for industrial space. A further advantage of leasing space in a logistics park involves stability in operating expenses, such as electricity or waste management.

Emphasis on operational efficiency

Warehouses that meet international standards also decrease capital costs and boost quality control. Proximity to roads, railways, and ports also helps speed distribution.

How to incorporate best practices for investing in warehousing in Ghana, Mozambique, and Cote d’Ivoire

Best practices in warehousing go beyond physical infrastructure as well as considerations regarding power supply, internet access, and security.

Training local workers

Logistics in Africa have increased employment opportunities in Ghana, Mozambique, and Cote d’Ivoire. In Tema, for example, Agility hires 100 percent of its employees locally. The company offers vocational and technical training to local students to create its own skilled labor force.

Paying attention to the environment

In keeping with the global movement toward sustainability, Agility warehouses meet international environmental standards. For example, Agility uses energy-efficient roof materials. Skylights provide natural lighting and accompany LED and energy-saving bulbs. Solar-powered streetlights and wind-driven roof fans also contribute to energy savings.

Using data-driven solutions

Reliable internet means companies can use technology to improve best practices in warehousing. Artificial intelligence (AI) can save companies time and reduce operating costs. For example, AI can free employees from routine tasks, such as modifying fulfillment orders that come through the warehouse.

How to find the future in warehousing

The prime warehousing and logistics market has seen increased activity in certain pockets of sub-Saharan Africa, notably Abidjan and Maputo, Knight Frank reports. There’s rapidly improving infrastructure and favorable government regulations. It’s important to determine if you are getting value for your money in Ghana, Mozambique, and Cote d’Ivoire warehousing. Contact Agility today for expert guidance on how to capitalize on these emerging markets.

Logistics parks with strategic locations in Mozambique offer a unique benefit to gas and oil companies. Warehouses near road networks, airports, and rail lines provide the quick access needed for safe, secure storage of equipment, vehicles, and construction materials necessary for production of natural gas and oil.

The economy of Mozambique, one of Africa’s poorest countries, is forecast to grow by 4% in 2022.  One reason is the country’s drive to exploit its sizeable deposits of oil and natural gas. Mozambique is currently the third-largest holder of natural gas reserves in Africa, with 100 trillion cubic feet of reserves. The country’s reserves position it to be an international exporter and one of the world’s leading producers of both oil and gas in the coming years.

The Rovuma Basin off the coast of the Cabo Delgado Province in Mozambique is considered the new home of oil and gas. Three large liquefied natural gas (LNG) projects underway in this area have greatly increased the demand for logistics parks:

• The Rovuma LNG project is a $30 billion LNG project and the largest of the three. The project has been on hold due to an insurgent attack in the area, but investors are confident the project will move forward soon.
• The Rovuma Basin also hosts the Mozambique LNG project ($20 billion) and the Coral Floating LNG project (worth $4.7 billion).

The following will demonstrate specific benefits of logistics parks for both oil and gas companies and what to look for when choosing a logistics park warehouse.

Benefits of logistics parks for oil companies in Mozambique

Oil companies face many challenges in today’s world, including the growing concern about fossil fuels and their role in climate change. Long-term energy transitions aim to improve energy efficiency and use of renewable energy to lower the environmental impact of fossil fuels.

Agility warehousing offers a unique opportunity for multinational energy companies operating in the booming market in Mozambique. For them, logistics parks are invaluable. Oil companies in particular face challenges when it comes to the storage of heavy equipment, pipes, and other materials needed to produce oil. Logistics parks help alleviate those complications and ensure oil companies keep costs down.

How oil companies can use logistics parks

Typical uses of logistics parks include storage, processing, distribution, and light manufacturing. They offer oil companies covered and outdoor storage for high-value equipment and parts, chemicals and lubricants, vehicles and other goods, in addition to providing space for fabrication and maintenance.

How does this relate specifically to oil companies? Large-scale energy projects like those in the Rovuma Basin require construction and engineering that must be synchronized and carefully sequenced. Logistics parks provide secure covered and uncovered space to stage materials, equipment and crew work required.  Another important aspect of a logistics park is that they provide a central location, which enables those processes to be more efficient.

Unique benefits of logistics parks

Logistics parks offer many unique benefits, including reducing costs and saving companies’ time. The strategic location of logistics parks helps to streamline the transportation and warehouse needs of oil companies, thus increasing supply chain efficiency.

The Agility Logistics Park in Maputo, Mozambique, for example, is located on Maputo’s Ring Road with ready access to the Maputo Port and the main roadways to South Africa. The proximity of this logistics park to the port provides easy access to stored vehicles and pipes needed for major oil projects. Having these items stored close to drilling sites enables oil to be moved from offshore Mozambique to northern Mozambique and beyond in a more efficient and cost-effective way.

Reducing company costs and increasing productivity

Oil companies face unique and complex challenges with the supply chain. Special equipment needs and the vast number of pipes needed in oil production requires the assistance of logistics and logistics parks to guard against service interruptions and protect investment. Problems with drilling equipment in need of repair or replacement can be easily remedied if there is additional equipment stored nearby.

Logistics parks like the Agility Logistics Park warehouse in Maputo are ideally located and connected to road, air, rail, and sea networks. A strategic, central location reduces unnecessary transportation. A secure storage site for everything needed to produce oil also keeps costs down by keeping expensive machinery and equipment safe, and providing maintenance, repair and engineering space. In Mozambique, this is critical.

Benefits of logistics parks for gas companies in Mozambique

Mozambique generates more electricity than it consumes, and South Africa receives a large part of the excess energy because the surplus is exported from Mozambique. Apart from proven oil reserves, there is additional  untapped potential in the energy sector, with an estimated hydropower potential of 12,000 MW and large natural gas reserves as well. 

Proven and estimated Mozambican energy reserves present huge opportunities for gas companies. To efficiently reap the benefits, a central storage location is needed to assist with the intense resource and manpower needed to produce natural gas.

Logistics park features for gas companies

Offshore natural gas production requires a lot of specialized, heavy equipment. Cranes and hoisting systems, large engines, and pumps are commonly required. Logistics parks offer the amount of space necessary to store and maintain this kind of equipment, as well as the construction material for production platforms.

Pipes are essential in virtually any oil and gas project because they are used in underground wells, embedded in the sea floor and used to construct pipelines.  Seventy-five percent of South Africa’s natural gas is transported via pipelines. Logistics parks are crucial to natural gas production because they provide laydown yard space for all the pipes needed for transport.

Why should gas companies use logistics parks for storage and distribution?

One of the challenges that gas companies face is ensuring that the requirements of demand and supply are met in an effective way. This is especially difficult in parts of Africa that lack the storage infrastructure needed to meet the demand.

Logistics parks and Agility warehouses provide the solution with safe, secure storage for gas production equipment and ideal locations for easy access. Gas companies can use logistics parks for storage of all the large equipment, tools, chemicals and other material necessary to extract and transport gas.

Improving gas company efficiency

South Africa has historically relied on coal as the main energy source for the country (comprising about 80 percent of the energy mix) but is moving towards natural gas, which emits less CO2. One of the biggest challenges that gas companies face in using natural gas and liquid fuels efficiently lies in the complicated supply chain.

Logistics parks increase the efficiency of the supply chain by cutting out unnecessary transportation time. With gas extraction equipment and pipes all in a central location, there are fewer steps in the chain.

How logistics parks in Mozambique help foster growth in international markets

Logistics parks help foster economic growth in international markets in several ways. First, logistics parks provide more efficient access to roads and ports. This helps encourage growth as it reduces transportation and shipping costs. Lower costs and easier transportation access both increase the opportunity to expand globally.

Logistics parks greatly help to streamline the supply chain process. Costs for gas and oil companies are reduced by using move-in ready warehouses as these businesses don’t have to plan and build their own storage facility. By helping to save costs and increase efficiency, logistics parks can help organizations grow and compete with multinationals.

Benefits of central distribution hubs

Mozambique offers tremendous opportunities in the oil and gas industries but lacks the infrastructure that is needed to process and distribute products. Logistics parks help boost the infrastructure by serving as central distribution hubs. These hubs have the following benefits:

• Lowered storage costs
• Increased efficiency of warehouse organization
• Lowered transportation costs
• Increased readiness to distribute products

Poor infrastructure results in disconnected supply chains, and logistics parks mitigate that risk. Companies wishing to enter a new market in an area with poor infrastructure can utilize the benefits of Agility ready-built warehousing. In short, centralized distribution hubs increase accessibility for oil and gas companies.

Reducing the carbon footprint

Lowering the carbon footprint of multiple industries is a global responsibility. Carbon footprint reporting is particularly important in African countries as they have a high vulnerability to climate change. Finding a balance between economic growth from energy operations and conservation of natural resources is no easy task.

The world has long been dependent on coal, and that has greatly contributed to high levels of greenhouse gasses. Moving from coal to natural gas serves to protect and increase energy investments while also meeting environmental goals and regulations. Logistics parks provide support for the transition to natural gas by providing centralized storage sites to make natural gas supply chains more efficient.

Fostering economic growth

An investment in Mozambique logistics parks will help foster economic growth in the region by supporting the manufacturing and extractives industries. Investing in logistics parks will help to support job growth and economic expansion in Mozambique.

Finding the right logistics parks in Mozambique

What oil companies should look for in logistics parks

There are several features that crude oil companies should look for in logistics parks when considering an investment in Mozambique. Of utmost importance is the location because having a strategic location is one of the best advantages of logistics parks. The lower transportation costs and streamlined distribution opportunities hinge on the location. Agility’s logistics parks, for example, are all located near capital cities and major roads and rail networks, seaports, and airports.

Cities like Maputo check all the boxes for location. The gas and oil exploration sectors in the Cabo Delgado Province have driven demand for an increase in air transport. This means that the area will most likely see an expansion in air transportation options. Mozambique already has four large commercial ports, including Maputo. Mozambique also has a rail network from the Port of Maputo to South Africa.

There is an inherent risk in investing in emerging markets with capital costs and efficiently meeting the market demand. Agility’s logistics parks help mitigate those risks with unique advantages. Agility offers services and expertise such as increased warehouse security, climate-controlled storage, and over forty years of facilities maintenance experience.

What gas companies should look for in logistics parks

Like oil companies, gas companies should look for certain traits in a logistics park. Location, experience, and type of warehousing offered are important. In addition, gas companies may want to consider sustainably-built warehousing.

As the world grapples with climate change and many countries attempt to make a move away from fossil fuels to renewable energy sources, natural gas extraction has presented itself as a transitional solution. Finding a logistics park that uses eco-friendly materials and waste management services will further support the environmental goals of responsible gas companies.

Agility offers a green warehouse design with recycling zones, low-emitting paint, and regionally sourced building materials. Agility warehouses also lower energy costs and environmental impact through solar panels, skylights, and LED lighting.

Regulatory requirements

Compliance with regulatory requirements is of paramount importance with gas and oil companies. As regulations for the extraction and production of gas and oil change, companies may need additional storage space for special equipment needed to meet requirements.

Depending on the area, there may also be many regulations surrounding the safe storage of hazardous materials used in energy production. Chemicals, drilling mud, and hazardous goods need a secure storage site, and Agility Logistics Parks can meet that requirement.

Contact Agility to learn more about the experienced, international-standard Agility Logistics Park in Mozambique. See how Agility warehousing provides high-quality, sustainably designed logistics parks with strategic access to transportation networks.

As a logistics hub for the World Food Program, the West African nation of Ghana has attracted attention in areas that support the movement of goods. Warehousing in Ghana has benefited from associated investments from private business as well as public-private partnerships.

With a population of more than 31 million, Ghana ranks as one of the fastest-growing economies in Africa, according to the World Bank’s Logistics Performance Index. Located just north of the equator in West Africa, Ghana’s coast runs 328 miles along the Atlantic Ocean, providing easy access to global shipping lanes.

Ghana channels its exports through two principal seaports on the Gulf of Guinea, which is an embayment of the Atlantic. Tema is located fifteen miles east of the capital city of Accra. Takoradi is in the other direction, about 113 miles west of Accra. In addition, Ghana has four international airports, including Accra’s Kotoka International Airport.

While the COVID-19 pandemic has disrupted economic activity in Ghana and worldwide, it also has forced African nations to find innovative solutions for trade. The continent is undergoing rapid change. After a six-month delay due to the pandemic, the African Continental Free Trade Area (AfCFTA), headquartered in Accra, launched in January 2021.

AfCFTA created the largest free-trade area since the formation of the World Trade Organization. Africa’s 1.2 billion people and combined gross domestic product of $3 trillion now create a single market for goods and services. Aspects of AfCFTA include reductions in tariffs, the free movement of people, and the emergence of new trade routes.

The signatory countries expect AfCFTA to boost trade within Africa and promote industrialization. Like other African governments, the Ghanaian government is determined to drive investment into its logistics infrastructure to support the emerging continental market. This includes improvements to ports, road systems, and warehousing in Ghana.

Benefits to renting warehouse space in Ghana

Several government initiatives have spurred the development of logistics in Ghana since the 1990s.

Investment incentives

 To promote real estate investing in Ghana, the government passed the Ghana Investment Promotion Centre Act in 1994. The act established a government agency (the Ghana Investment Promotion Centre) specifically for encouraging and promoting investments in Ghana. In particular, the agency seeks to provide a transparent and attractive investment environment by facilitating the following:

• An investor registration process
• Work and residence permits for employees
• Import duty exemptions for machinery
• The acquisition of permits and approvals

Free zones

In 1995 the Ghanaian parliament passed the Free Zone Act, which established the Ghana Free Zones Authority (GFZA). The GFZA regulates certain special areas within which companies can produce, receive, and store goods without paying customs duties. In addition, real estate developers receive an exemption from property tax for their first eight years of operations.

The World Bank has recognized Ghana’s efforts. Its report Doing Business 2019: Training for Reform noted the following improvements:

• Easing trade across borders: Ghana has improved electronic document processing and submission for imports. Also, it has enhanced customs administration and inspections for imports and exports.
• Strengthening construction quality control: Ghana has imposed stricter qualification requirements for professionals in charge of inspections.

Location

By virtue of its location, cargo and travelers in Accra can reach Europe or the Americas by air in around eight hours. In addition, Ghana has an underdeveloped inland water transport system with great potential. Lake Volta winds 250 miles past important Ghanaian towns and connects to the Atlantic Ocean. Despite numerous constraints that affect industrial development, cargo ferries and barges carry an estimated 255,000 tons of products every year.

Furthermore, the Ghana Shippers’ Authority (GSA) has completed feasibility studies for warehousing projects at Buipe, a town in northern Ghana. Buipe sits on an inlet of Lake Volta. The GSA hopes to make use of its location to provide warehousing facilities to shippers, especially those from landlocked countries.

New terminals

Ghana has undertaken additional projects to attract logistics providers. For example, in 2016 the Ghana Airport Cargo Center (GACC) opened at Kotoka International Airport in Accra. A public-private partnership funded the 10,000 square meter (108,000 square foot) warehouse. The GACC features high-speed internet as well as solar water heaters and an in-house water filtration plant. The warehouse also has LED lighting and panoramic lifts for handling air freight and other cargo.

In addition, the Ghana Ports and Harbour Authority, a container terminal operating company, and a French logistics firm partnered on a new container terminal in Tema. The $1.5 billion investment increases the access of Ghana to the global trade market.

Infrastructure investment

An additional project focuses on expanding the road between Accra and Tema to a six-lane modern highway. The project is a collaboration between an international container terminal operating company, the government of Ghana, and a nonprofit road safety organization. The project also will improve connecting roads and access points between Tema and inland destinations.

e-Commerce

A report by the McKinsey Global Institute indicates e-commerce activity in Africa could reach $75 billion by 2025. The report designates Ghana as an “emerging” nation in terms of its internet economy and foundations for future performance.

The expansion of e-commerce depends on the availability of warehouses that meet international standards. According to the World Economic Forum, e-commerce logistics requires four times the warehouse capacity of a traditional fulfillment model.

Improvements to warehousing space in Ghana

For years, African countries relied on “godowns” for the storage of goods. A godown functions as a sort of makeshift warehouse that a retailer may use to store its own goods. Godowns lack certain basic features that meet international standards, such as reliable power, internet connectivity, security and protection from weather and the elements.

But as the Ghanaian government recognizes the importance of upgrading infrastructure, it has emphasized simplifying the development of commercial property.

Procedure simplification

The Ghana National Single Window program allows importers and exporters to file all necessary documentation in one place. Previously, a tangled web of paperwork contributed to inefficiencies in logistics management. Centralizing these requirements into one online repository simplifies the process for a logistics company seeking to operate in Ghana.

Warehouse certification

In 2019, the Ghana Commodity Exchange (GCX) launched a program to promote the use of warehouse receipts for trading and financing. After a farmer stores goods in a warehouse, the GCX produces an electronic receipt. The farmer may then use the receipt as collateral to secure a loan or as a commodity for trade.

Warehouse receipt finance has underpinned development of several countries in Africa, most notably Ethiopia, South Africa, and Tanzania. The GCX hopes to see similar growth in Ghana, where agriculture is a key sector of the Ghanaian economy. Agriculture accounts for up to 20 percent of the gross domestic product and 60 percent of employment, according to Ghana Talks Business.

The government of Ghana owns the GCX and provided the setup capital for the warehouse program. The GCX trades contracts for immediate delivery of white maize, yellow maize, sesame, sorghum, and soya bean through several warehouses.

The Ghana Grains Council, an industry association supporting the grains industry in West Africa, lists twelve GCX certified warehouses throughout the country. It also lists twenty-two community warehouses still operating under manual warehouse receipt.

Waste reduction through warehousing in Ghana

The government of Ghana has been working to establish itself as an important gateway to the West African market. Ghana Vision 2020 was the government’s economic plan to promote the flow of foreign capital into Ghana and provide international-quality infrastructure services.

Perishable goods

Globally, about one-third of food gets lost or wasted, according to the Food and Agriculture Organization of the United Nations. In Africa, poorly managed storage contributes to much of this loss.

To reduce waste, modern warehouse facilities in Ghana utilize temperature regulation as well as pest control and security measures. In addition, consolidating warehousing for commodities and agriculture allows local processing to take place in facilities used for storage.

For example, an aviation company developed the Air Ghana Perishable Centre (AGPC). The AGPC has features designed for the handling of perishable cargo designated for export out of Ghana. The facility has a refrigerator measuring 165 square meters (about 1,800 square feet) that can adjust to various temperatures.

In addition, the aviation company manages a 6,000 square meter (64,500 square foot) cargo facility in Accra. The warehouse has an automated storage retrieval system that can store up to 2,800 tons of goods. The facility also has three refrigerators offering various temperature ranges, all of which have sensors and alert systems to protect perishable goods.

Support for small and medium enterprises

A Ghanaian food producer consolidated its operations into a single production location. The company used a support program for small and medium enterprises (SMEs) to move into a ready-built warehouse that meets international standards. Thanks to the SME program from Agility, the company did not have to provide financial guarantees or raise capital. It moved into its new facility with just three months’ rent as a deposit.

Best practices for warehouse space in Ghana

In response to the COVID-19 pandemic, Agility offered free warehouse space to the World Health Organization (WHO). The WHO used Agility warehouses to stockpile medical supplies and the COVID-19 vaccine in Ghana and its other centers.

Setting the standard with Agility Ghana

Agility Ghana operates a forty-five-acre state-of-the-art industrial park in the Tema Free Trade Zone. The Ghana Agility Distribution Park is the first of a planned network of logistics parks Agility plans to build across Africa. The network has already expanded to include logistics parks in Mozambique, Ivory Coast and Nigeria.

Agility has a lease agreement with various types of tenants. Agility rents to multinational companies seeking to enter the market of West Africa. Also, small- and medium-sized Ghanaian companies looking to expand light manufacturing and their import-export businesses have a lease agreement. Agility is building seven more warehouses at the Ghana park, and it offers build-to-suit options for companies with specific requirements for rental property.

Sustaining environmental awareness

All Agility distribution parks meet international environmental standards. For example, the Ghana facility uses an energy-efficient roof and side-insulated panels as well as wind-driven roof fans. For lighting, it has skylights, LED and energy-saving bulbs, and solar-powered streetlights. Agility offers ecofriendly waste management services: the site recycles paper, plastic, metal, and carton waste.

Agility logistics parks also feature laydown yards. These are open spaces within the site to store a wide range of products, from vehicles and engineering components to oil and gas industry equipment. An online stock management system controls the movement of goods in and out of the laydown yards.

Agility’s laydown yards sit inside a separate fence within the Agility outer compound wall and feature constant security monitoring. In fact, all of Agility’s rental property, including the Ghana Agility Logistics Park, feature twenty-four-hour security and reliable power and connectivity. Thus Agility sets an example for quality logistics infrastructure with its warehousing in Ghana.

Investing in the labor force

Beyond the development of physical infrastructure, Agility has invested in human resources. It has developed leadership programs throughout Africa for local employees and university graduates. These programs provide training in management and skills related to logistics. Participants in the program have the opportunity to gain experience by working with Agility in Ghana and around the world.

Contact Agility to find out more about the Ghana Agility Logistics Park. Find out how the logistics hubs that Agility is building across the continent can help your company with a logistics infrastructure that meets or bests international standards.

Africa has struggled for years with industrial development. A lack of infrastructure and funding in African countries has limited the continent’s ability to compete with titans of production such as those in Asian countries. The lack of trade, in return, has limited funding for infrastructure.

However, companies from China, Europe, the United States and the Middle East are now looking to Africa as a burgeoning market and as a new frontier for logistics infrastructure to support growth there. With foreign investment, Africa is building warehousing and industrial parks.

While each country’s ability to sustain these parks is different, research shows that the whole continent benefits. With the economic growth and new employment that international investments have brought, Africa is on its way to becoming a competitor in the global market.

Highest concentrations of industrial parks and warehousing complexes in Africa

There are active industrial parks in forty-seven African countries, with the largest percentages in Morocco, Ethiopia, and Uganda. Agility currently has logistics parks in four African countries: Cote D’Ivoire, Mozambique, Ghana, and Nigeria.

With plans to build more, Agility has seen the potential for providing secure, efficient warehousing for supply chain and manufacturing companies. Now, Africa is reaping the rewards of this investment, as some industrial parks have grown to house over one thousand companies.

Industrial real estate booms in eastern Africa

Ethiopia’s Growth and Transformation Plan aims to make the African country a major manufacturing hub. It began to realize this goal through Chinese investments: China funded several parks and a railway connecting Addis Ababa to the Djibouti port. This plan is increasing the country’s revenue, and Ethiopia will build its newest agro-industrial park without foreign aid.

In Kenya, Nairobi Gate is a centrally located warehouse and logistics park built with efficiency in mind. It is expected to attract business with its “built to suit” approach  offering tenants flexible and customizable spaces. Agility’s logistics parks feature both built-to-suit warehousing and facilities, along with ready-built structures that are move-in ready. Industrial parks are also gaining popularity in Uganda because they offer more space at cheaper prices than traditional warehouses located in the cities.

Opportunities along the coast

With Africa heavily dependent on maritime trade, landlocked Ethiopia and Uganda rely on other countries for access to shipping ports. These two countries will need infrastructure improvements to fully participate in the global marketplace, but those on the coastline have already benefited.

Morocco’s Tanger Med in particular boasts a location along multiple major maritime trade routes and connections to 186 ports. South Africa and Egypt are also hubs where many international shipping routes connect, and Djibouti is a notable subregional port. All four of Agility’s warehouse parks are on coastlines as well: three in western Africa and one in the south.

Benefits of warehousing and industrial parks in Africa

African leaders know that industrialization is key to improving economic conditions in all countries. It not only creates jobs but will also eventually enable African countries to compete in the global manufacturing market. The key is for international companies to bring their business to Africa. With foreign companies eager to invest, it is truly a winning situation for all parties involved.

Incentives for international companies to develop industrial parks

Africa provides many incentives for manufacturers looking to save production costs and establish new supply chains. Lower wages and a growing population of workers make African countries an attractive alternative to historically Asian production centers, and new legislation could lead to a major shift.

The impending African Continental Free Trade Area promises a continental market with unified standards between member countries and lower tariffs, eliminating several current barriers to foreign direct investment. The young population and high unemployment rate also create the opportunity for long-term employment and economic growth, especially if companies train their workers.

The Agility Logistics Park in Tema, Ghana, for example, runs a program to provide local students with vocational and technical training, directly contributing to the growth of a qualified, skilled local workforce. In fact, Agility hires 100 percent of its Ghana employees locally.

Incentives for African countries to develop industrial parks

The presence of industrial parks has already increased foreign direct investment in many African countries. A significant percentage of national exports comes from industrial parks, increasing overall trade and economic performance for those industries and related sectors.

Local communities enjoy more employment opportunities, and the presence of warehousing and industrial parks provides potential for skills improvement for local workers. These parks have been notably effective at increasing the population of women in the workforce and supporting job creation in highly skilled sectors. They also create jobs indirectly through the infrastructure required to build and sustain them, such as road development and power supply.

Warehousing and industrial park regulations in African countries

A major drive for the construction of these parks is that current African warehouses do not meet international standards. Even beyond official regulations, countries need updated facilities to attract business. Manufacturing practices need improvement, especially with the increasing focus on sustainable production.

Widespread standards for warehousing and industrial parks in Africa

With the push for more environmentally friendly production standards, the African Development Bank has created policies based on the concept of sustainable development. Some key points for industrial parks include diversifying energy sources and improving public health through proper waste management practices.

The United Nations has also set guidelines for the development of industrial parks to ensure the well-being of both humans and the environment. These include global standards for industrial, environmental, and social infrastructure.

Countries’ responses to warehousing and industrial park regulations

Many African countries currently benefit from creating sustainable manufacturing solutions. Morocco, for example, has attracted foreign investors with its ambitious goal to generate 52 percent of its energy renewably by 2030. Thanks to these investors, the country is already running its special economic zone carbon neutrally. South Africa is also pursuing industrial energy efficiency as a solution to its currently strained power grid.

However, strict sustainability standards are not realistic across the continent, as not every country has the same capability to meet them. Ethiopia has been a topic of discussion for the past several years, as it lacks comprehensive zoning and land-use regulations. Without these factors, the government cannot enforce sustainable building practices for industrial parks.

Technological advancements in warehousing and industrial parks in Africa

African countries’ varying ability to implement rising standards also blocks new technologies that simplify and cheapen supply chain logistics. Artificial intelligence (AI) is increasingly popular in the logistics industry, reducing time and costs, and the COVID-19 pandemic accelerated this transition.

AI technology in the supply chain industry

Though AI technology is not perfect, it is still an improvement over human error. Self-driving cars may still need a human supervisor, but AI can complete many routine tasks such as modifying orders without intervention, leaving employees free to focus on more important and complicated tasks. The whole operation runs more efficiently and, in many cases, safely.

Obstacles to implementing warehouse automation in Africa

Because African countries are just starting to build warehousing and industrial parks, many workers require basic training before employers can consider introducing AI and machine-learning technology. Even worldwide, educational programs are only now beginning to teach the fundamental skill set that AI technology requires, and these are especially scarce in Africa. While company training programs can help fill this gap, traditional education systems also need improvement.

Lack of necessary education is not the only obstacle that stands in Africa’s way. Others include the following:

• Reliance on electricity and internet for AI—two things that are not always consistently available or affordable
• Concerns about ethical use and data collection
• Possibility of bias in algorithms, especially those written in countries with a predominantly white population
• Limited access to large sets of data

However, with increased revenue and economic growth from warehousing and industrial parks, many countries may soon invest in programs, policies, and infrastructure. In turn, these will help remove obstacles and reduce the gap between Africa and more industrialized nations.

The future for warehousing and industrial parks in Africa

Many challenges remain for Africa to become truly industrialized, and each country will likely progress at its own rate. However, the continent as a whole is benefiting from foreign investment into warehousing and industrial parks in Africa. Many countries have seen significant economic growth in the past several years, and foreign direct investments created jobs and educational opportunities.

As more international companies take advantage of low wages and sustainability measures that ensure efficient production costs, Agility plans to expand its existing operations. It currently operates in twenty-two countries across Africa, providing freight forwarding, airport services, liquid fuel logistics, camp construction, catering, remote life support, and more. In the future, Agility plans to build more logistics parks to client specifications.

Establishing business in Africa may seem overwhelming. There are potential risks—from unmet infrastructure and sustainability standards to the cost of building large facilities and developing employee training programs. Contact Agility today to help mitigate these risks and design the right solution for your company and its products.

Warehousing in Saudi Arabia could play a crucial role in the global warehousing market. The country is at a crossroads between Asia, Europe, and Africa. And by improving its warehousing, it can establish its place as a powerhouse in global trade.

The Saudi warehousing market is growing, and emerging technology and services provide the country with more options to expand. To capitalize on this potential, Saudi Arabia must take stock of its current warehousing market and look for ways that logistics partners like Agility can help it grow.

Status of the warehousing market in Saudi Arabia

In 2016, Saudi Arabia announced its plan to reduce the country’s dependence on the oil market and diversify its economy with a strategy called Vision 2030. To develop the country into a global trading hub, Saudi Arabia is improving its logistics market, including warehousing, and has made strong steps forward in logistics management.

Current warehousing market

According to Ken Research, the Saudi dry warehousing market grew by 2.8 percent between 2015 and 2019 and will continue to grow until at least 2025. The industrial and retail industries are responsible for the largest percentage of this expansion.

The warehousing market is largest in the cities of Jeddah, Riyadh, and Dammam. While Jeddah has a majority of the warehouse revenue share, all three cities play a key role in the expansion of warehousing in Saudi Arabia.

• Jeddah: Jeddah is a port city on the Red Sea. Its warehousing district is close to the Jeddah Islamic Port. Here, the warehouse and logistics supply districts stretch 26.1 million square meters.
• Riyadh: Located in the center of the country, Riyadh is the capital of Saudi Arabia and its main financial hub. Its warehousing districts are primarily near Riyadh’s dry port. The city dedicates 24.5 million square meters to warehousing and logistics parks.
• Dammam: The Dammam metropolitan area is on the Persian Gulf. Its warehousing and logistics parks cluster among four zones to the north, east, south, and west of the city. Currently, the city uses 20.9 million square meters for its warehouses and logistics parks.

Dry freight forwarding

Dry logistics refers to the transport of freight that cannot get wet. The dry logistics market in Saudi Arabia centers primarily in Riyadh and Jeddah. These cities mainly use road transport for dry logistics, with air, sea, and rail following as alternate freight modes.

Dry freight forwarding is a newly stable industry in Saudi Arabia. Between 2015 and 2019, an oil price slump and subsequent economic downturn caused the dry logistics industry’s compound annual growth rate to decline.

However, market analysts from Ken Research forecast that the dry logistics and freight forwarding markets will grow by 1.3 and 0.8 percent, respectively, until the forecast period ends in 2025. This growth is due in part to Vision 2030’s efforts to improve the country’s logistics management.

Warehousing advancements in Saudi Arabia

As the warehousing market in Saudi Arabia expands, companies are developing innovative solutions to streamline their supply chains and increase functionality. Because of this, Saudi Arabia’s warehousing sector is set to keep pace with the rising demand for goods moving in and out of the country.

Key warehousing advancements

To meet the goals outlined in Vision 2030, the Saudi Arabia warehousing market expanded and introduced a number of inventive solutions to push the industry forward.

• Cold storage: In the wake of the COVID-19 pandemic, the need for a safe and effective way to transport and store vaccines was apparent. To meet global demand for a vaccine, Saudi Arabia built a series of warehouses dedicated to storing pharmaceuticals and other perishables. These refrigerated warehouses enable the country to maintain a cold supply chain.
• National Industrial Development and Logistics Program (NIDLP): Saudi Arabia launched NIDLP to improve infrastructure and design new policies related to economic growth. By dedicating financial support to logistics development, NIDLP aims to build Saudi Arabia’s role as a regional logistics hub and improve warehousing.
• Al Khomrah Logistics Zone: The Saudi Arabian ministry of transport opened a logistics zone in Jeddah to support shipping, freight distribution, and transport. This is the largest logistics zone in the country.
• On-demand warehousing: On-demand warehousing enables companies in Saudi Arabia to access warehouse solutions on a temporary basis. On-demand warehousing services negotiate with warehouses to build a network of facilities to increase supply chain efficiency. Companies can lease on-demand warehouse space as a way to cost effectively address shifting demand.

Important technology for warehousing advancements

One of the most crucial elements driving Saudi Arabia’s warehouse market is the country’s embrace of technological advances. These developments help streamline the supply chain and improve warehouse management.

• Saudi blockchain technology: Saudi Arabia aims to implement smart systems to facilitate efficient trade and storage—particularly at seaports, which account for the majority of its trade. To that end, Saudi Customs successfully launched a blockchain pilot to help strengthen the country’s shipping logistics infrastructure. The technology will offer a digital reference of all stages of trade in order to increase transparency across the shipping supply chain.
• Application programming interfaces (APIs): APIs help different order fulfillment, inventory management, and warehouse management software to communicate with each other. This streamlines the warehousing process and enables warehouses to connect with other elements of the supply chain.
• Internet of Things (IoT): The IoT is a boon for warehouse managers, enabling improved inventory management systems and real-time tracking. IoT devices embedded into shipments help companies see where their transported assets are in real time, anywhere in the supply chain. This leads to a faster, more efficient, and more visible flow of goods. By quickly exchanging data with the IoT, warehouses can make all processes more economical.

Challenges with Saudi Arabian warehousing logistics

To emerge as a major player in global logistics, Saudi Arabia must face several obstacles to warehousing expansion. By understanding these challenges, the country is better suited to overcome them.

Major challenges for logistics managers

• e-Commerce: The use of e-commerce has expanded globally and among Saudi Arabian citizens. The market is fast growing, which exposes weaknesses in Saudi Arabian supply chains. Urban centers in Saudi Arabia are not as compact and densely populated as urban environments elsewhere. That lack of density limits efficiency in distribution from the warehouse to the customer. Because of this, suppliers are sometimes unable to meet the demands of e-commerce shoppers for fast shipping.
• Supply chain interruption: COVID-19 revealed vulnerabilities in supply chains. Because their success is dependent upon a variety of uncontrollable variables, warehousing facilities have little power over supply chain interruptions. This means facilities are vulnerable to delays that can result in canceled orders and a lack of customer trust.
• Aging warehouses: Modern, automated warehouses come at a cost. Because of this, many warehousing districts, particularly in Riyadh, contain a large number of aging and outdated structures These are less suited to meet demand and can slow the throughput of goods. Saudi Arabia will need to upgrade these aging warehouses in order to keep up with the global warehousing market.

Solutions for common challenges with warehousing in Saudi Arabia

As challenges arise in warehouse management, companies must develop solutions to meet them. As Saudi Arabia seeks to overcome these challenges, there are many solutions that can help its warehousing networks thrive.

Close proximity to suppliers

Minimizing the distance that materials and goods need to travel can help reduce logistics inefficiencies. Large distances between a company’s suppliers, warehouse facilities, and consumer centers increase lead times, transportation costs, and the risk of supply chain disruption.

Strategic positioning of warehouses can prevent these complications. By positioning warehouses close to suppliers and consumer centers on road, air, and sea transport routes, companies can improve supply chain efficiency. Making these decisions upfront helps companies to cut inefficiencies out of their supply chain before they become a problem.

Warehouse automation

With a growing global demand for goods, it is essential that warehouses effectively manage their inventory, personnel, and equipment. Without reliable warehouse inventory monitoring, companies risk using unreliable data to manage inventory levels.

Additionally, inaccurate personnel or equipment tracking may lead to inefficient warehouse processes. As a consequence, these companies risk failing to deliver goods on time and costly setbacks. Automation in warehouse inventory management systems can alleviate these issues.

The most common way warehouses can implement automation is through warehouse management systems (WMSs) and warehouse control systems (WCSs). While there is some functional overlap between the two, WMSs primarily work to manage personnel and inventory while WCSs focus on equipment.

These systems provide more reliable data on stock levels and workflow to ensure swift order fulfillment. By embracing these systems, Saudi warehouses can more efficiently manage their inventory and product flow.

Logistics parks

One of the most challenging parts of any warehousing operation lies in infrastructure development. Existing logistics parks ease the burden by supplying a fully developed warehouse and logistics infrastructure to companies that need it—logistics parks provide complete logistics services in the storage and distribution of products.

Agility holds over one million square meters of space in Riyadh, Jeddah, and Dammam. Agility’s warehouses in Saudi Arabia are strategically located for easy access to seaports and airports, making them accessible to international customers. These modernized facilities can help companies optimize their logistics.

How Agility can help

Understanding warehousing in Saudi Arabia can help warehouse management companies make a plan for seizing the potential this region has to offer. To meet your warehousing requirements, contact Agility Saudi Arabia, a leading logistics provider in the region.

With Agility Saudi Arabia, regional and global clients can connect with suppliers and markets around the world.