By Silvia Nyambura
Trademark East Africa (TMEA) has announced the second round of its Logistics Innovation for Trade (LIFT) Challenge Fund support for innovators and entrepreneurs working in the logistics and transport sector. LIFT is a US$ 16 million grant-based financial mechanism that supports innovators with good ideas for products or services that can reduce the costs of transport and logistics in East Africa. The fund will provide grants ranging from US$ 150,000 to US$ 1 million to winning proposals from innovators from across the world whose project ideas will be implemented in the East African Community (EAC). The launch follows a successful inaugural round that saw 9 awards to projects that are touted to deliver a significant reduction in time and transport costs in their area of operations
East Africa is reported to have the highest freight and transport costs in the world; over 50% higher than the USA and Europe per kilometer. Transport costs for landlocked countries in the region can be as high as 75% of the value of exports. Transit times have the most significant effect on exports and also result in firms having to carry higher levels of stocks making them less efficient.
Successful LIFT projects will contribute to TMEA’s objective of reducing transport time along the main East Africa transport corridors by 15% by the end of 2016.
Speaking during the launch, TMEA Senior Director for Logistics Abhishek Sharma, said, “LIFT is a valuable financial instrument that supports private sector ‘can-do’ to develop and test new ideas that should reduce the cost and time of transport and logistics in the EAC. TMEA is essentially co-investing with the private sector in projects that are seen as being too risky to undertake without external sponsorship or support.
