Kenya-based e-logistics company Lori Systems has secured funding from Google's $50-million Africa Investment Fund launched in October 2021.
Lori Systems, which has helped thousands of shippers and carriers move over $10-billion of cargo across Africa since its founding in 2017, is a pioneer in e-logistics on the continent, lowering the cost of goods by eliminating pain points along the cargo journey.
Across the continent, logistics operators navigate several challenges, from fragmented supply and demand markets, to inconsistent pricing, paper documentation and little or no access to financing.
According to Knight Frank’s Logistics Africa report, 75% of the price of a product in Africa is attributed to logistics, compared with just 6% in the US.
Lori Systems mitigates these challenges by seamlessly connecting shippers to transport; providing shippers with solutions to efficiently manage their cargo and transporters; and digitising their entire transport operations from sourcing transport to documentation and payments.
“At Google, we understand the transformative power digitisation can bring to the African continent. There is so much potential in the region, but it is only through innovation that this can be fully unlocked,” says Google sub-Saharan Africa MD Nitin Gajria, highlighting that Lori Systems is a great example of how technology can be scalable across Africa, and how, in turn, this can drive meaningful economic development.
“We are excited to see where the future takes a business like this.”
“In recent years the global logistics industry has seen much innovation. However global supply chains are in dire need of modernisation, with technologies yet to reach critical scale,” adds Lori Systems cofounder and chief product officer Jean-Claude Homawoo.
According to Homawoo, the African Continental Free Trade Agreement is expected to lead to an 81% increase in intra-African trade, providing a $21.9-billion opportunity in untapped trade potential that the 54 ratifying countries are hoping to capitalise on over the next five years.
“Logistics is key to unlocking this opportunity.”
“We are excited to have Google as a partner as we continue to build the operating system for emerging market logistics. Our vision of the future of logistics in Africa is one that is digital, scalable and more efficient,” says Lori Systems CEO Uche Ogboi.
“We have been successful, achieving up to 20% price reduction for cargo owners and nearly two-time increase in truck use for transporters on our platform. We are excited about this funding as it will allow us to continue driving superior efficiencies across logistics on the continent.”