CARISCA Events

Ghana’s second Logistics Managers Index reveals slow growth in logistics activities

Logistics Managers Index

The second quarter 2022 Logistics Managers Index for Ghana shows that growth in the logistics sector has slowed from the first quarter. This slower growth is due to economic pressures such as high inflation, the depreciation of the cedi against the dollar and the global supply chain disruptions impacting logistics in Ghana.

The Logistics Managers Index is a tool created by CARISCA to support decision-makers and improve businesses and livelihoods in Africa. By measuring combinations of inventory, warehouse and transportation activities and tracking the relationship between these variables, the LMI provides a timely measure of movement in logistics activities in Ghana.

The Ghana LMI is the first of its kind in Africa, and a significant step toward supply chain efficiency, visibility and transparency in the country. 

The LMI measures the growth or decline of Ghana’s logistics industry based on eight key components: 

  1. Inventory levels 
  2. Inventory costs
  3. Warehousing capacity 
  4. Warehousing utilization 
  1. Warehousing prices 
  2. Transportation capacity
  3. Transportation utilization 
  4. Transportation prices

Key findings from the second LMI report include:

  • The demand for warehousing continues to outstrip supply. For the second time in a row, warehouse capacity registered the lowest value among all the component indicators.
  • Inventory levels have decreased substantially from the first quarter levels. Businesses are stocking fewer inventories due to slowed consumer spending.
  • The economic situation is worrying because it seems to be having ripple effects on multiple sectors of Ghana’s economy and could lead to food shortages and the resultant hiking of food prices.
  • Interestingly, predictions by respondents indicate optimism for an improved future growth in logistics activities in Ghana in the next quarter.
  • A new metric in the second quarter report shows a growing use of electronic payment systems for logistics activities.

CARISCA will continue to capture, analyze and share LMI findings quarterly on its website, https://carisca.knust.edu.gh/LMI. 

Download the latest LMI Report

Senior executives and managers of Ghanaian organizations are invited to participate in the next quarterly LMI survey by visiting https://www.surveymonkey.com/r/Q3-LMI.