Logistics fund introduced for innovative thinkers

By KBC Reporter

A logistics fund has been launched targeting to reward those offering solutions that would help reduce time taken to transport cargo in East Africa.

About 100 million shillings would be offered in grants to firms under the Logistics Innovation for Trade Challenge Fund.

The project also targets to help reduce transport costs that are as high as 75 percent of the value of imports in some East African countries.

East Africa has some of the highest freight and transport costs in the world, estimated to be 50% higher than those of the USA and Europe.

For land-locked countries, transport costs could rise to as high as 75% of the value of exports.

This coupled with the long transit time’s result in firms having to carry higher levels of stock, making them less efficient.

And with the Kenya Revenue Authority often missing revenue collection targets in recent years, innovation in the transport and logistics sector could help the taxman increase collections.

Speaking during the launch of the LIFT Challenge Fund that will provide grants of up to 100 million shillings to innovators in the transport and logistics private sector, Fund Manager David Mitchell urged government agencies to work closely with them as their projects would help reduce transport time along the main East African transport corridors by 15% by the end of the year.

The fund has so far provided grants worth 770 million shillings to innovators from Uganda, Kenya and Tanzania.

  

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