Organizations appear to have shifted from the usual trend of restocking after the December holidays, with logistics and procurement activities slowing down in the first quarter of 2024, according to the Ghana Managers Index.
During this period, the overall logistics index value dropped to 62.4% from the previous quarter’s 63.3%.
The index, which measures aggregate inventories, warehouse activities, the carriage of goods, and other key metrics in the supply and logistics value chain, indicates that low movements and high costs in certain areas contributed to this 0.9 percentage point decline in the logistics sector.
The report highlights that aggregate logistics costs remain high, recording a value of 245.4 for the first quarter of 2024, well above the threshold of 150. Although warehouse prices slightly decreased from 77.2 to 76.7, warehousing utilization saw a 6.0 percentage point drop.
Additionally, inventory costs increased from the previous quarter’s 79.9 to 81.1.
For the third consecutive quarter, the use of electronic payment systems rose significantly, with the first quarter of 2024 recording a value of 71.2.
With Fintech gaining broader acceptance in the Ghanaian economy, the report projects steady growth for the logistics sector.