NAIROBI, April 5 (Xinhua) -- Africa Logistics Properties (ALP), which is partly owned by International Finance Corporation (IFC), the World Bank's private sector arm, plans to build modern logistics parks across East Africa in order to improve supply chain efficiency in the region, officials said on Wednesday.
ALP CEO Toby Selman told a media briefing in Nairobi that the firm will deliver the first 140,000 square meters of warehouse space in Kenya in the next two years.
"We also have a number of pipeline projects in Uganda that will help reduce cost of logistics in the country," Selman said during the launch of the Broll Kenya Market Report 2017.
ALP will design, build, finance and lease the logistics parks to businesses in need of storage. Selman said that existing godowns in the region are very small, congested and not fit for purpose.
"As a result, the cost of logistics in the East Africa region is very high, making goods costly for consumers," he said.
Experts have indicated that logistics account for 40 percent of cost of goods sold in East Africa compared to a global average of less than 20 percent.
The logistics parks are part of efforts to reduce the cost of doing business in East Africa so as make the region a competitive producer of goods.
The warehouses will hold fast moving consumer goods as well as fresh produce.
ALP also plans to build modern logistics parks in West and North Africa.
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