Can Logistics Firm Cainiao Help with the Distribution of COVID-19 Vaccines in Africa?

There are indeed ways in which Cainiao can help with the distribution of COVID-19 vaccines in Africa, but it faces real limitations and challenges that cannot be resolved easily.

Vaccine Availability. Neither Cainiao nor Alibaba can do much about the vaccine shortage issue African countries are facing. They may be able to help facilitate deals between Chinese vaccine developers and African countries to supply their COVID-19 vaccines to African countries, but the Chinese and international regulators are still working on their approval. It is unclear when and if they will be made available to the Chinese or African public.

Limited Cold Chain Infrastructure. Cainiao’s logistics optimization and management system are still based on logistics assets on the ground, so its system has its limits. Even Cainiao’s innovative solutions cannot overcome some problems such as insufficient logistics and supporting infrastructure. Cainiao and Alibaba’s investment in new logistics infrastructure in African countries in the short term is also likely to be limited.

Data Privacy. In order to optimize logistics solutions, Cainiao collects and analyzes a massive amount of data. There have been concerns over user privacy and data security. Some African countries are already taking steps to strengthen data protection and it is important for Alibaba and Cainiao to address these concerns.

Local Context. It remains a question whether Cainiao can replicate its success in Africa. Although Africa has roughly the same population as China, it is divided into 54 countries and countless jurisdictions. All of them have very different political systems, cultures, religions, levels of income and development, and languages. Devising logistics solutions for these areas is a major challenge. As we mentioned in our last article on Alibaba, Chinese companies operating in foreign markets often suffer from a lack of local knowledge. While Cainiao and Alibaba might aspire to standardize the logistics solutions it provides and develop global rules in this area, it is essential for them to take into account inputs from the African public and private sectors.

Collaboration with International Organizations and National Governments. International organizations and national governments in Africa are likely to lead the effort in distributing COVID-19 vaccines in Africa. International organizations, in particular the United Nations, have strict systems to register and manage their vendors, and donations to these agencies often come with additional requirements such as greater transparency and accountability. Much of any eventual success will depend on Cainiao’s ability to collaborate with them and follow their rules in the process.

There are still many things we do not know about COVID-19 vaccination in Africa such as when and what kind of vaccines will be available for distribution in African countries. Nevertheless, experts have already warned against difficulties ahead due to the lack of logistics infrastructure, resources, and solutions in African countries. Cainiao and Alibaba’s recent moves are steps in the right direction, and there is more they can do to help with COVID-19 vaccine distribution in Africa. But what they can offer is not a silver bullet. Their involvement could even cause backlash and new problems. Cainiao and Alibaba should work within the framework set up by international organizations in this area, as well as national governments, to make sure their impact is both positive and welcome. In addition to companies in Africa, other global logistics companies such as DHL and UPS should also pitch in to help. Facing an unprecedented challenge like this, international organizations, national governments, and the private sector will have to work together to build much-needed solutions.