Digitalization of logistics in East Africa: Potentials and bottlenecks

Abstract

Digitalization is increasingly shaping the logistics landscape in East Africa, offering opportunities to enhance trade efficiency while also posing challenges that hinder its full adoption. This study examines the digital logistics ecosystem across key East African trade corridors, focusing on Single Window Systems (SWS), Port Community Systems (PCS), and cargo tracking platforms. Guided by four specific objectives, the research maps existing digital platforms, assesses their impact on customs clearance times, port dwell periods, and overall cargo transit duration, estimates their effect on freight and transaction costs, and evaluates operational reliability through system uptime and downtime performance. A mixed-methods approach was employed, combining quantitative data from 385 logistics operators, importers, exporters, and port officials with qualitative insights from key stakeholders. Findings reveal that digital platforms have significantly improved operational efficiency, reduced cargo transit times, and lowered costs, particularly where system reliability is consistently high. Nonetheless, limited interoperability among platforms, infrastructure gaps, and occasional system downtimes continue to constrain the full potential of digital logistics. The study underscores the transformative power of digitalization in enhancing trade competitiveness and highlights the importance of complementary investments in infrastructure, human capacity, and regional integration. These insights offer practical guidance for policymakers, port authorities, and private sector actors seeking to strengthen the digital logistics ecosystem and promote more seamless, cost-effective, and reliable trade operations in East Africa. Specifically, the policy makers are recommended to harmonize regional digital trade policies, expand digital infrastructure along key corridors, and incentivize SMEs to adopt digital tools, strengthen cybersecurity frameworks, and build a skilled digital logistics workforce. Port authorities are recommended to fully automate port operations, reduce human interaction points, integrate port systems with national and regional platforms, invest in smart equipment, and improve last-mile connectivity. Private sector actors (transporters, freight forwarders, warehouses, and shipping lines) are recommended to adopt digital tracking and fleet management tools, integrate business systems with national digital platforms, digitize internal workflows, strengthen digital literacy among staff, invest in cyber-resilient operations, and participate in regional digital innovation ecosystems. Finally, all stakeholders are recommended to promote interoperability above all else, strengthen public–private dialogue, leverage big data for decision-making, and adopt green digital logistics practices.