Beyond Trucking: Why recognising logistics as ‘infrastructure’ is key to beating inflation – Akinsomisoye

Across Africa, logistics companies move goods, support trade, and keep supply chains running, but they often operate without the capital needed to modernise or scale. Despite their central role in economic activity, funding gaps limit growth, innovation, and competitiveness.

In this interview, with Omowasola Akinsomisoye, managing director of Sunbeth Shipping and Logistics (SSL), he explains the tangible cost of underinvestment and the opportunities Africa could seize if capital were aligned with the sector’s potential.

Tell us about yourself. What drew you to logistics, and what keeps you engaged in this sector?

My background is in accounting, and I’ve always been drawn to understanding how systems work, where money flows, what drives costs, and where inefficiencies hide. When I got into logistics, I realized this sector needs that kind of thinking. We operate across sea, air, and land freight in multiple markets. Logistics is the backbone of trade and economic activity, and it intrigues me how central this is to the supply chain.

What keeps me engaged is knowing that when you get logistics right, the impact reaches far beyond one company, and how it affects entire supply chains, economies, and people’s livelihoods.

At what point did you realise that funding and infrastructure limitations were holding back African logistics?

The signs were always there, but it became undeniable last year when I saw the same pattern across the industry. Good local operators were losing contracts not on merit but on balance sheet, while foreign operators were winning because they could afford the technology, fleet expansion, and infrastructure investments that local companies couldn’t match.

Banks consider logistics as “too risky,” and development finance often comes in small and non-scalable doses. It’s far bigger than the struggle of one company. This is an entire sector starved of capital, and that shortage slows trade, raises costs, and limits Africa’s economic potential.

Why are traditional banks hesitant to lend to African logistics companies, and what misconceptions drive that reluctance?

Part of the problem is past experience. Some logistics operators failed to meet up with their obligations in the past, loans became non-performing, and that created lasting damage. Banks now treat the entire sector with caution because of those earlier failures, even when dealing with credible, well-run operators. There could also be a knowledge gap, not fully understanding logistics as the heart of trade and its impact on the economy. Without efficient logistics, inflation rises because goods can’t move around the nation affordably. It’s essential infrastructure, not just trucking and warehousing.

The irony is that credible operators are actually strong credit risks, but they can’t prove it without access to capital.

How has Sunbeth Shipping and Logistics navigated these funding challenges, and what growth opportunities have you had to delay because of capital constraints?

We’ve had to be strategic and disciplined, focusing on operational efficiency, strong customer relationships, and retaining talented people who understand the business.

However, there is no doubt that there are clear limitations. We see opportunities in expanding routes and entering niche markets, but without the capital to invest in the necessary infrastructure, warehouses, and equipment, we have to pass. So we grow incrementally when we should be scaling rapidly.

Despite these funding barriers, what strategic decisions has Sunbeth made to remain competitive and deliver value across African markets?

We’ve doubled down on what differentiates us, which is reliability and consistency. We deliver on time, every time. That’s our core promise. We’ve also invested in talent retention because experienced teams understand the nuances that systems can’t capture, and we’ve leveraged technology to provide efficient services to our clients.

Beyond that, optimizing within our constraints and building partnerships with government has helped us stay competitive. The goal is to position ourselves for when capital becomes available by building the operational track record and systems that make us credible. In imperfect conditions, resilience is the strategy.

How do cross-border complexities limit the trade opportunities that African logistics operators could otherwise serve?

Start with intra African trade under AfCFTA. The agreement creates a massive market, but high tariffs, inconsistent cross border procedures, language barriers, and fragmented customs systems make full participation difficult.

Efficient logistics could smooth these bottlenecks, but operators need capital to build the systems and infrastructure that make cross-border trade affordable and predictable. Until logistics operators access that capital, the promise of AfCFTA remains largely unrealized.

If logistics infrastructure were treated as a strategic economic priority, which interventions would deliver the greatest impact?

First, governments and lenders need to recognise logistics as infrastructure, not just a service. This means creating logistics-specific financial products like asset-backed loans and equipment financing.

Secondly, public-private partnerships are essential. Governments can’t fund everything, and private investors need risk-sharing structures. PPPs for ports, warehouses, and transport corridors create the backbone that operators can build on.

Thirdly, policy coordination is critical. Customs, trade, and transport policies are often disconnected. Harmonising regulations and simplifying cross-border processes would reduce costs and attract investment.

Finally, Africa needs logistics-focused financial institutions that understand the sector and provide patient capital. Real transformation takes long-term investment.

If adequate capital began flowing into African logistics today, what would become possible within five years that seems impossible now?

The landscape would change completely. We would see modern warehouses, fleet upgrades, widespread logistics technology, efficient cross-border movement, and faster delivery times. Intra-African trade would grow in practice, not just on paper.

Reliability would improve, and African logistics operators could compete globally on equal terms. Five years may sound ambitious, but capital is key. The talent, demand, and potential already exist. We’re simply waiting for investment to match the opportunity.

Juliet Onyema is a transport journalist who reports on Nigeria’s transport and automobile industry. She covers emerging Electric Vehicles (EVs), ranging from adoption to usage, automobile firms and transport policies which affect them, and also recurring trends affecting commuters’ mobility interstate and intrastate.

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