Google has provided money to Nairobi-based Lori Systems, an e-logistics firm offering shippers ways to effectively manage their cargo and transporters and digitizing transportation, to enable it to continue to grow throughout the continent.
With a focus on flexibility, dependability, and cost savings, Lori Systems was established in 2016 to offer supply chain management solutions to cargo owners. The firm is currently operational in 13 countries, including Nigeria, South Sudan, Uganda, and Rwanda. So far, it has assisted thousands of shippers and carriers transport over US $10 billion worth of cargo around the continent.
In order to continue its growth into frontier markets throughout the continent and beyond, Lori has now added Google to its list of backers. In 2020, Lori obtained finance and support from Imperial, a supplier of comprehensive market access and logistics solutions with a focus on Africa and Europe.
“We’re excited to have Google as a partner as we continue to build the operating system for emerging market logistics. Our vision of the future of logistics in Africa is one that is digital, scalable and more efficient,” said Lori Systems CEO Uche Ogboi.
“We have been successful, achieving up to 20 percent price reduction for cargo owners and nearly 2x increase in truck utilisation for transporters on our platform. We are excited about this funding as it will allow us to continue driving superior efficiencies across logistics on the continent.”
The third investment from Google’s US $50 million Africa Investment Fund, which CEO Sundar Pichai announced in October 2021, also follows the opening of Google’s first product development centre in Africa, which is also located in Nairobi, Kenya.
“At Google, we understand the transformative power digitisation can bring to the African continent. There is so much potential in the region, but it’s only through innovation that this can be fully unlocked. Lori Systems is a great example of how technology can be scalable across Africa, and how, in turn, this can drive meaningful economic development. We’re excited to see where the future takes a business like this,” said Nitin Gajria, Google’s managing director for Sub-Saharan Africa.
In recent years, the global logistics sector has experienced a lot of innovation, according to Jean-Claude Homawoo, co-founder and CPO of Lori Systems.
“However global supply chains are in dire need of modernisation, with technologies yet to reach critical scale. On the continent, the African Continental Free Trade Area (AfCFTA) is expected to lead to an 81 percent increase in intra-African trade, providing a US$21.9 billion opportunity in untapped trade potential that the 54 ratifying countries are hoping to capitalise on over the next 5 years. Logistics is key to unlocking this opportunity,” he said.
