At the AfCFTA Business Forum held in Kigali, Rwanda, Dr. Daniel McKorley — Executive Chairman of the McDan Group — made a compelling call for African governments and businesses to prioritise reducing the cost of cargo movement across the continent, warning that high logistics costs remain one of the biggest barriers to realising the full potential of the African Continental Free Trade Area.
The Problem: High Cargo Costs
Dr. McKorley highlighted that the cost of moving goods across Africa is among the highest in the world, significantly undermining the competitiveness of African businesses in global and regional trade. Key cost drivers include:
- Port handling and demurrage fees
- Inefficient customs procedures and border delays
- Limited inter-African shipping routes forcing cargo through European hubs
- Poor road and rail infrastructure connecting ports to inland markets
- Lack of direct shipping lines between African ports
"If we want AfCFTA to work, we must make it cheaper to trade with each other than to trade outside Africa. Right now, it is often cheaper to ship goods from China to Ghana than from Ghana to Kenya." — Dr. Daniel McKorley
Proposed Solutions
McKorley presented concrete proposals to address these challenges, drawing on the McDan Group's own operational experience across more than 2,400 ports worldwide:
A new dedicated inter-African shipping line to reduce freight costs by creating direct cargo routes between West, East, and Southern African ports — eliminating the need to re-route through Europe.
A complementary shipping company offering competitive freight services specifically designed for African businesses operating under the AfCFTA framework, with competitive pricing models.
Investment in real-time cargo tracking technology and digital customs documentation to reduce delays, lower administrative costs, and increase transparency across trade corridors.
Ghana as a Trade Hub
McKorley positioned Ghana — and specifically the McDan Logistics Hub in Tema — as a natural gateway for AfCFTA trade in West Africa. The hub already provides:
- State-of-the-art warehousing for perishable and non-perishable goods
- Real-time cargo tracking and customs interface
- Multimodal connectivity — sea, road, and air
- Direct connections to landlocked Sahelian countries
The Bigger Vision
Dr. McKorley's advocacy extends beyond his own business interests. He believes that logistics reform is foundational to African economic integration — and that the private sector must lead where governments are slow to act.
By reducing cargo costs, millions of African small and medium enterprises (SMEs) would be able to access new markets, compete more effectively, and contribute to economic development across the continent.
"AfCFTA is Africa's greatest economic opportunity in a generation. But opportunity without infrastructure is just a promise. We must build the roads, the ports, the ships, and the systems that make trade possible." — Dr. Daniel McKorley
