Ghanaian logistics activities have weathered the storms of a near recession mid-2022 and have been resilient in the face of a challenging operating environment. Results from the 2023 first quarter Logistics Managers Index report reveal optimism that the logistics sector is rebounding.
The index recorded its highest reading to date, with an overall value of 67.1. A value above 50% indicates growth, and values below 50% are evidence of a contraction.
On May 23, LMI researchers held a webinar to present results and share critical insights from the latest survey of Ghanaian logistics managers.
The record-high rating is being driven by an increasing inventory level and a reduction in the cost metrics of inventory, said lead LMI researcher Emmanuel Quansah. Rising transportation and warehousing prices are also factors.
The Logistics Managers Index is a tool CARISCA created in 2022 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 quarterly growth or decline of Ghana’s logistics industry based on eight key components:
- Inventory levels
- Inventory costs
- Warehousing capacity
- Warehousing utilization
- Warehousing prices
- Transportation capacity
- Transportation utilization
- Transportation prices
Key findings from the Q1 2023 report include:
- Inventory levels have climbed up and businesses are restocking in anticipation of consumer spending in the second and third quarter.
- Logistics costs (inventory cost, warehouse prices and transportation prices) have declined and may continue on a downward trend leading into the second quarter of 2023.
- Warehouse capacity has increased slightly while transportation capacity has declined; however there is a significant increase in warehouse and transportation utilization.
- Predictions indicate further growth in logistics activities in the second quarter.
- The Electronic Payment Systems (EPS) index recorded growth in the first quarter 2023, and we are going to see more people transacting business using electronic payment systems as we enter the second quarter.
CARISCA will continue to capture, analyze and share LMI findings quarterly on its website, https://carisca.knust.edu.gh/LMI.
Senior executives and managers of Ghanaian organizations are invited to participate in the next quarterly LMI survey by visiting www.surveymonkey.com/r/Q2-23-LMI.