Botswana rated second best in logistics
Botswana Unified Revenue Services ( BURS)’ s efficiency, among other competences, has spurred the country’s ability to move goods across borders with speed and reliability.
World Bank’s latest global Logistics Performance Index ( LPI) has rated Botswana as the second best economy in logistics after South Africa.
Covering 139 countries, the LPI measured the ease of establishing reliable supply chain connections and the structural factors that make it possible, such as the quality of logistics services, trade, transport- related infrastructure, and border controls.
The report, which is based on a maximum score of 5.0, adjudged South Africa as the best in Africa and 19th in the world with a score of 3.4 per cent, followed by Botswana and Egypt which scored 3.1 per cent each to place a joint 57th position globally.
However, Botswana is better rated than Egypt due to the performance of its customs.
According to the Global Director for Trade, Investment, and Competitiveness at the World Bank, Mona Haddad, Logistics are the lifeblood of international trade, and trade in turn is a powerful force for economic growth and poverty reduction.
“The LPI helps developing countries identify where improvements can be made to boost competitiveness.”
The LPI 2023 report revealed that end- to- end supply chain digitalisation, especially in emerging economies, allows countries to shorten port delays by up to 70 per cent compared to those in developed countries. Moreover, demand for green logistics is rising, with 75 per cent of shippers looking for environmentally friendly options when exporting to high- income countries.
“While most time is spent in shipping, the biggest delays occur at seaports, airports, and multimodal facilities. Policies targeting these facilities can help improve reliability,” said Christina Wiederer, Senior Economist with the World Bank Group’s Macroeconomics, Trade & Investment Global Practice and the report’s co- author.
It pointed out that policies targeting these facilities can help improve reliability, including improving clearance processes and investing in infrastructure, adopting digital technologies, and incentivising environmentally sustainable logistics by shifting to less carbon- intensive freight modes and more energy- efficient warehousing.
On average, across all potential trade routes, 44 days elapse from the time a container leaves the port of the exporting country until it enters the destination port, with a standard deviation of 10.5 days.
That span represents 60 per cent of the time it takes to trade goods internationally.
The LPI report provides valuable information for policymakers and stakeholders involved in the logistics industry. It helps identify areas where countries can improve their logistics performance, thereby enhancing their competitiveness in the global marketplace.