Organizations in Ghana appear to have strayed from the typical pattern of restocking after the December holidays, leading to a slowdown in logistics and procurement activities in the first quarter of 2024, according to the latest Ghana Managers Index.
The report indicates a decline in the overall logistics index value to 62.4 per cent in the first quarter of 2024, down from 63.3 per cent in the previous quarter. This index, which measures aggregate inventories, warehouse activities, carriage of goods, and other critical metrics in the supply and logistics value chain, suggests that reduced movement and high costs in specific areas contributed to the 0.9 percentage point drop in the sector.
Despite a slight decrease in warehouse prices from 77.2 to 76.7, warehousing utilization saw a significant 6.0 percentage point drop. Additionally, the report notes an increase in inventory costs, rising from the previous quarter’s 79.9 to 81.1.
The aggregate logistics cost remained high, with a recorded value of 245.4 for the first quarter of 2024, still well above the threshold of 150. This indicates persistent cost pressures within the logistics sector.
On a more positive note, the usage of electronic payment systems continued its upward trend for the third consecutive quarter, reaching a value of 71.2 in the first quarter of 2024. With Fintech gaining broader acceptance in the Ghanaian economy, the report projects steady growth for the logistics sector.
The Ghana Managers Index’s findings highlight the complexities and evolving dynamics of Ghana’s logistics landscape, underscoring the need for businesses to adapt to changing market conditions and cost structures.
