The logistics business is the most hit of the nearly worldwide lockdown due to the COVID-19 pandemic, caused by the novel coronavirus which has disrupted almost all sectors and doing business in Africa. As a result, young Nigerian E-logistics entrepreneur, Obi Ozor, Group CEO and co-founder of E-logistics startup Kobo360 had to go back to the drawing board.
According to Obi;
When COVID-19 hit Africa, our initial response was to safeguard our employees by following the guidelines set by the World Health Organisation (WHO) and the governments of countries we operate in, such as providing hand sanitisers and working from home. Alongside these measures, we were charged with securing the essential goods for the millions of Africans that rely on our service. We began speaking to our network of port authorities, suppliers, drivers and manufacturers, even struck key player partnerships to pool our resources to ensure that movement could continue, from cross-border, to intra-state and last-mile deliveries. Keeping Africa moving went from being an informal motto to an actual agenda.
We officially launched our Global Logistics Operating System (G-LOS), a blockchain-enabled platform which provides remote access to the entire supply chain, allowing for business continuity during the crisis by facilitating a steady stream of trips. G-LOS facilitates the social distancing practice as drivers can secure their jobs with cargo owners through the app. To keep costs low for drivers, we have subsidised their fuel, tyres and spare parts for maintenance.
Our drivers need to be in trucks, on the road and on the move. That is how we, as a logistics company, set out to face the challenges that coronavirus had presented us with; by ensuring that essential supplies are being transported from point A all the way to point B, we can avoid the very real threat of food shortages and civil unrest.
Unfortunately, due to the recent lockdown in Nigeria and the lack of clarification from the government on what was deemed to be essential movement, 3,000 of our trucks were “parked” as drivers feared being arrested, attacked or having their goods impounded by law enforcement. The dialogue between us and the government bodies that we so urgently requested early on has now begun to allow for fluid movement. We want to engage in serious discussion with them, then more importantly, put into place even more serious actions.
Not only are we trying to navigate the bumps in the road caused by unclear announcements, there are other issues which are completely out of our hands and that will hit our industry pretty hard. The volume of goods across the continent has reduced by 30%, the biggest drop being non-essential goods such as construction stock by 50%. Seventy percent of vessels have delayed their arrival time by as much as 40 days. These figures are rapidly changing and significantly affecting all industries, not just logistics. But essentially, the whole supply chain has been shaken to the core.
Kobo360 entered the market to revolutionise the logistics industry, COVID-19 has further demonstrated just how important technology is in the 21st century, in terms of moving goods, connecting people (safely) and powering industry, where possible. Our e-logistics platform has enabled us to continue movement across the continent in a way that protects our drivers, employees and the community, whilst minimising the risk of abrupt disruption to our business.
Africa’s recovery from the symptoms of this pandemic will undoubtedly be buoyed by our resilient disposition.
Source: African Business Magazine
