Zimbabwe’s transport and logistics sector should urgently embrace environmental, social and governance standards and artificial intelligence technologies or risk exclusion from global supply chains, the Shipping and Forwarding Agents Association of Zimbabwe has warned.
Speaking during a seminar titled “ESG and Artificial Intelligence: Transforming Zimbabwe’s Transport and Logistics Sector” held in Harare last week, SFAAZ chief executive officer Washington Dube said the industry faced mounting pressure from rising operating costs, weak infrastructure and increasing international sustainability requirements.
“The industry faces immense pressure, high operational costs, inadequate infrastructure and international demands for sustainable practices,” Mr Dube said.
“However, the very tools being demanded, ESG and AI, also provide the pathway to overcome these challenges.”
Mr Dube said firms that failed to modernise risked losing access to international markets and foreign investment opportunities as global supply chains increasingly demanded sustainability compliance and digital integration.
“Failure to adapt means exclusion from global supply chains and escalating costs. Successful integration, however, promises reduced operational expenses, improved efficiency at borders and enhanced competitiveness for Zimbabwean exports.” he said.
The logistics sector plays a central role in supporting trade and industrialisation in Zimbabwe, a landlocked economy heavily dependent on regional transit corridors through South Africa, Mozambique and Tanzania.
According to Mr Dube, ESG compliance was no longer simply a reporting requirement or a reputational exercise, but had become a direct driver of operational efficiency and cost reduction.
“Fuel represents one of the largest operational expenses for logistics firms, especially now following global oil market volatility linked to the USA-Iran conflict,” he said.
“ESG frameworks encourage fleet optimisation, reduced idling time, efficient route planning and preventive vehicle maintenance. These actions directly reduce fuel consumption, vehicle wear and tear, insurance costs and carbon emissions.”
He added that stronger occupational health and safety policies could help companies lower labour-related costs by reducing workplace accidents, driver fatigue incidents and staff turnover.
“Implementing strong labour standards improves operational continuity while reducing compensation claims, recruitment costs and legal disputes,” Mr Dube said.
On governance, he said improved transparency and procurement systems would help protect firms from fraud, customs irregularities and regulatory penalties.
The pressure to adopt ESG standards was also intensifying both internationally and domestically, Mr Dube noted.
“Foreign investors and multinational customers now demand traceable supply chains, carbon reporting and environmental accountability,” he said.
“ESG compliance is rapidly becoming a prerequisite for market participation rather than a voluntary exercise.”
Mr Dube pointed to new sustainability reporting requirements introduced by the Zimbabwe Stock Exchange and the Victoria Falls Stock Exchange for listed companies as evidence that regulatory pressure was also increasing locally.
Artificial intelligence, meanwhile, was emerging as a critical tool for cutting costs and improving efficiency across transport operations.
“AI shifts transport systems from a reactive model to a predictive and prescriptive model,” Mr Dube said.
He said AI-powered route optimisation systems could significantly reduce fuel consumption and delays on major trade corridors such as Beitbridge-Harare, Harare-Chirundu and Harare-Mutare.
“AI engines analyse weather conditions, traffic flows, road quality and historical delays to identify the fastest and most fuel-efficient routes,” he said.
“This reduces idle time, transit delays and unnecessary fuel burn.”
Mr Dube said predictive maintenance technologies were also helping logistics operators avoid costly breakdowns and cargo spoilage.
“AI integrated with vehicle telematics can detect engine irregularities, brake wear and tyre deterioration before breakdowns occur,” he said.
“This is especially important for perishables and horticultural exports where delays can lead to significant losses.”
Warehouse automation and AI-powered inventory management systems were also lowering storage costs and improving order fulfilment efficiency, he added.
Border inefficiencies remain one of the highest hidden costs for regional trade, according to Mr Dube, but AI-enabled smart border technologies could help solve the problem.
“Intelligent border management systems support automated document verification, faster customs clearance and biometric driver processing,” he said.
“Machine learning also enables risk profiling, meaning compliant cargo can clear instantly while only high-risk shipments are flagged for inspection.”
Zimbabwe’s high logistics costs continue to undermine export competitiveness by increasing the final cost of locally produced goods in global markets.
Mr Dube said modernising the sector would require major structural reforms aligned with the country’s Vision 2030 agenda.
“The revitalisation of the National Railways of Zimbabwe is critical,” he said.
“Moving bulk freight from roads to rail will lower transport costs, reduce congestion, lower emissions and minimise road damage.”
He also called for full implementation of Zimbabwe’s electronic single-window system to integrate customs, immigration and standards agencies into one digital platform.
“This will eliminate paperwork duplication, remove non-tariff barriers and accelerate cargo clearance times,” Mr Dube said.
He added that Zimbabwe also needed modern green transport policies, cleaner fuel standards and data-driven regulation to support long-term transformation of the logistics industry.
“A modernised logistics sector is the backbone of trade, industrialisation and achieving Vision 2030,” he said.-herald
