Djibouti makes huge strides on Logistics Performance Index

Djibouti has moved up 44 places within two years in the logistics performance Index in 2018 making it one of the most improved countries in the world.

The latest report shows that the country has moved from 154th in 2014 to 90th this year, and is listed as one of the top 10 most improved economies in the World Bank’s ‘Doing Business’ report.

Djibouti, a tiny east African nation has revamped three of the most modern ports in Africa in US$ 15 billion expansion, including the Doraleh Multipurpose Port, which handled over 24,000 TEU in its first six months of operation.

World Bank says that the LPI score depends primarily on industry perceptions of relative performance. Also being considered is respondents’ own experiences and the types of cargo they handle.

High-income countries, on average, surpass low-income countries by 48 percent in their LPI scores.

This is supported by the fact that among the 30 top-performing countries, 24 are members of the Organization for Economic Co-operation and Development (OECD), a proportion that has not changed much over the past LPI reports.

Nonetheless, the issue of income might not be a perfect yardstick for the LPL. Countries such as China, India, Rwanda, Thailand, and Vietnam outperform their income group peers (figure 1.4). That is why income alone cannot explain why performance varies widely among countries in certain income groups.

South Africa tops the African table in the logistics index at number 33 while Ivory Coast is at number 50. Kenya on the other hand is at number 63.

Germany tops the  logistics performance Index in 2018 followed by Sweden Belgium and Austria in that order.