Google has announced its latest investment in Lori Systems, a Nairobi-based e-logistics company providing shippers with digital solutions to manage cargo and transporters. The company is yet to disclose the actual size of the stake, but this marks Google’s third investment from its $50 Million Africa Investment Fund announced in October 2021. This fund is part of Google’s bigger plan to invest $1 billion in tech-led initiatives over the next five years.
The cost of moving goods in Africa is one of the highest in the world, as on average 75 per cent of product costs goes to logistics – compared to just 6 per cent in the US. The African Continental Free Trade Area (AfCFTA) is expected to lead to an 81 per cent increase in intra-African trade, providing a $21.9 billion opportunity in untapped trade potential that the 54 ratifying countries are hoping to capitalize on over the next 5 years. Logistics is key to unlocking this opportunity.