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Posted: January 24th, 2024
Evaluating the Determinants of Port Productivity in Africa
Evaluating the Determinants of Port Productivity in Africa
Ports are vital for the economic development of Africa, as they facilitate about 95% of the continent’s international trade (UNCTAD 2023). However, many African ports face challenges such as congestion, low berth productivity, inadequate infrastructure, and poor logistics. These factors affect the efficiency and throughput of ports, which in turn have implications for the growth potential of African countries. Therefore, it is important to evaluate the determinants of port productivity in Africa and identify the best practices and policies that can enhance it.
Port productivity can be measured by various indicators, such as port calls, dwell time, container handling, cargo volume, and value added. According to Ayesu et al. (2022), seaport efficiency and port throughput have a direct significant positive effect on economic growth in Africa. Specifically, a 1% increase in seaport efficiency (port throughput) improves economic growth between 0.014 and 0.038% (0.028% and 0.043%). They also find that seaport efficiency is vital for port throughput to have its greater effect on economic growth in the continent. Therefore, improving seaport efficiency should be a priority for port policies in Africa.
Some of the factors that influence seaport efficiency and port throughput are infrastructure, technology, governance, competition, regulation, and trade facilitation. For instance, Walkenhorst (2010 – Essay Writing Service: Write My Essay by Top-Notch Writer) argues that modernizing port infrastructure, enhancing port technology, improving port governance, promoting port competition, streamlining port regulation, and simplifying trade procedures can improve port performance and reduce trade costs in Africa. He also suggests that regional integration and cooperation can foster port development and trade expansion in the continent.
In conclusion, port productivity is a key determinant of economic growth in Africa, as it affects the volume and value of trade that passes through ports. Therefore, evaluating the determinants of port productivity in Africa and implementing policies that can improve it are essential for enhancing the competitiveness and development of African countries.
Works Cited
Ayesu EK, Sakyi D, Darku AB. Seaport efficiency, port throughput, and economic growth in Africa. Maritime Economics & Logistics. 2022;25:479–498.
UNCTAD. Review of Maritime Transport 2023: Facts and Figures on Africa. UNCTAD; 2023.
Walkenhorst P. Ports, Logistics and Trade in Africa: An Overview. IFC PPP Ports Conference; 2010 – Essay Writing Service: Write My Essay by Top-Notch Writer.
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