Ghana’s economy post-COVID-19 is on the rebound, and one of the sectors facilitating this turnaround is logistics, a major contributor to Ghana’s GDP.
Previously, logistics activities in Ghana were not measured or monitored. This situation changes with the introduction of Ghana’s first Logistics Managers Index (LMI).
Developed by the Center for Applied Research and Innovation in Supply Chain – Africa (CARISCA), based at Kwame Nkrumah University of Science and Technology, the LMI measures the growth or decline of Ghana’s logistics industry based on eight key components. These are inventory levels, inventory costs, warehousing capacity, warehousing utilization, warehousing prices, transportation capacity, transportation utilization and transportation prices.
“African businesses need more reliable local data,” says Nathaniel Boso, CARISCA director and a co-author of the index. “Information on business activities in Ghana and other countries in sub-Saharan Africa is limited. The LMI will help track the movement of logistics activities in the business sector to fill the present information gap.”
CARISCA’s first Logistics Managers Index shows a rise in logistics activities in Ghana. This increase is welcome news, as it indicates the opening up of the Ghanaian economy after the pandemic. The LMI is calculated as a percentage value that reveals whether logistics activities are increasing or decreasing. The mid-value/threshold is 50.0%. A value above 50% indicates a growing logistics industry, while a value below 50% indicates a shrinking logistics industry.
The first-quarter report indicates that the overall Logistics Managers Index (LMI) for Ghana stands at 64.7, which is indicative of growing logistics activities in the country. According to the report, logistics costs are generally high, with three cost-related indicators (warehouse prices, inventory cost and transport prices) recording the highest values of all the indicators.
The report also reveals a need for more warehousing and customer fulfillment facilities close to major cities and towns, as demand for warehousing outstrips supply. Current inventory levels are high, reflecting strong demand for goods and services in the country. The report projects that there will be continuous growth in logistics activities over the year, which will have spill-over effects on the entire economy.
The LMI provides insights for the government, business decision-makers, market analysts and investors. According to Mr. Mark Amoamah, national president of the Chartered Institute of Logistics and Transport, “this new index by CARISCA provides a timely measure of movement in logistics activities in Ghana and identifies prevailing trends. The data should improve the visibility and efficiency of Ghanaian supply chains.”
This tool is the first of its kind in Africa. It provides supply chain managers in Ghana with evidence-backed data and information to enable effective supply chain planning. The LMI is based on a survey of logistics, supply chain and procurement managers across multiple industries in Ghana.
CARISCA is inviting senior executives and managers of Ghanaian organizations to participate in the quarterly LMI surveys: ttps://www.surveymonkey.com/r/3RJ3FCX.
Latest Stories
-
Appiatse reconstruction: Support Bawumia to do more for Ghana – Richard Ahiagbah to Ghanaians
21 mins -
I wanted Harry Kane at Man United – Ten Hag
23 mins -
Ayorkumi: Stage play on slave trade premieres on May 11
24 mins -
Majority defends GRA-SML deal, insists no wrong was done
31 mins -
Church Of Pentecost disburses educational sponsorships worth ¢14,281,540 million
32 mins -
Money Summit: Fidelity Bank’s Atta Gyan calls for a rethink on investment strategies
47 mins -
WPL 2023/24: Battle for glory as Northern and Southern zone clubs chase playoff spots
55 mins -
Ghana’s Press Freedom Index improvement nothing to write home about – Sam George
1 hour -
Ghana Wellness and Healthcare Awards slated for June 14
1 hour -
OSP begins investigation into alleged bribery of EC staff by Kwadaso MP
1 hour -
Ghana FA laud Coach Zito with standing ovation after Dreams FC’s exploit in Africa
1 hour -
Asantehene worried over brain drain in African contemporary arts
1 hour -
Hearts of Oak legend berates current players for poor form
2 hours -
Unless EC has rules against officials receiving lunch money, nothing can be done in ‘envelope scandal’ – Prof Agyeman Duah
2 hours -
Singer Ayra Starr releases artwork, track list for ‘Sophomore Album’
2 hours