Greening Africa can lead to zero emission trade

On 23-25 March, the global freight and logistics industry experts gathered in Amsterdam, the Netherlands, for the second annual Smart Freight Week, hosted by Smart Freight Centre (SFC).

That was a huge step towards greening Africa’s trade, featuring critical stakeholders like the Northern Corridor Transit and Transport Coordination Authority (NCTTCA), the Central Corridor Transit Transport Facilitation Agency (CCTFA), the Federation of East African Freight Forwarders Associations (FEAFFA), the Shippers Council of Eastern Africa (SCEA) and TradeMark Africa (TMA).

The theme of the conference, “A Journey to an Efficient and Zero-Emission Logistics Sector,” underscored the alarming rise in greenhouse gas (GHG) emissions from freight activities along Africa’s major trade corridors.

Despite Africa’s low global emissions, at less than three per cent, and relatively minimal per capita emissions, its rapid increase in emissions threatens its trade potential with the global market demanding environmentally friendly products and is an urgent call for immediate and decisive action.

The continent is ranked third under the fastest-growing emissions category, as indicated by the Intergovernmental Panel on Climate Change (IPCC) in its “6th Assessment Report.”

With freight emissions projected to double by 2050, driven by a tripling in global freight demand, reducing emissions is not a choice but necessity.

Moral obligation

The necessity is twofold: First, it is a moral obligation from global commitments like the 2015 Paris Agreement and a practical imperative for market access. Africa’s export markets, especially the EU, valued at €21 billion in 2021, are hungry for sustainably produced goods and services.

This demand is driven by regulations such as the EU Green Deal, the Carbon Border Adjustment Mechanism (CBAM) and the EU Deforestation Regulation, which seek to achieve the EU’s carbon neutrality by 2050.

Secondly, carbon footprint is a key competitiveness metric, with research showing that over half of European adults are willing to pay more for such ‘green’ products. Therefore, by reducing its carbon footprint and enhancing the climate competitiveness of key exports, Africa can secure a niche market and pave the way for a more sustainable future.

Africa stands at a crossroads. The choices made today will determine its future position in the global market and its role in combating climate change. By embracing green trade practices, Africa can not only meet global market demands but also lead by example in the global effort to achieve a sustainable, zero-emission logistics sector.

The journey may be arduous but the destination—a greener, more sustainable future—is not only possible but also promising and well worth the effort.

Mr Olum is TMA director, Green Trade. [email protected].