Factors Affecting Logistics Performance and Economic Growth of Landlocked Countries within East African Community

28 Jul

Authors: Nirere Martine, Li Zhaolei

Abstract: This study explores the factors affecting logistics performance and economic growth in four landlocked East African Community (EAC) countries Burundi, Rwanda, Uganda and Ethiopia. The research emphasizes on three key objectives: analyzing import delays, assessing economic growth trends and identifying logistics-related challenges impacting development. A mixed-methods approach was adopted. Import delay data, measured through port and consolidated dwell time, was analyzed over a six-month period (May–October 2022), while macroeconomic data covering 2015–2024 was drawn from reputable international sources. Statistical tools, including mean, median, and interquartile range, were used to evaluate logistics delays, and economic indicators such as GDP growth, inflation, trade balance, investment rate, and employment were assessed. Findings show Uganda had the longest consolidated dwell time (18.2 days), indicating inland logistics inefficiencies. Ethiopia had the shortest dwell times, reflecting port reforms, though inland logistics remained moderate. Rwanda recorded the highest port dwell time (14.6 days), suggesting dependency on foreign ports. Burundi exhibited inconsistent delays, with limited data suggesting weak monitoring systems. In terms of economic growth, Rwanda and Ethiopia demonstrated consistently strong GDP growth, supported by infrastructure investments. Uganda maintained stable growth, while Burundi lagged due to political instability and structural weaknesses. Common challenges across all four countries included persistent trade deficits, underemployment, high inflation, and low productivity, particularly in agriculture. The study concludes that logistics inefficiencies are a critical constraint on economic growth in landlocked EAC countries. Policy recommendations include infrastructure development, customs modernization, improved port access agreements, regional transport harmonization, and strengthened trade monitoring systems. These measures are essential for enhancing trade competitiveness and fostering sustainable development in the region

DOI: https://doi.org/10.5281/zenodo.16530155