Abstract

The importance of a reliable road network cannot be overstated. Roads serve as the primary mode of transportation for both passenger and freight movement in many regions around the world. They connect cities, towns, and rural areas, facilitating trade, economic growth, and social connectivity. The primary purpose of this study is to assess the effect of Road networks in transport and logistics systems on the performance of SMEs in Limbe municipality.

The study adopted a survey research design. Data for this study was obtained with the help of a structured questionnaire and analyzed using both descriptive and inferential statistics. Results from the regression result show that road surface condition and road safety performance have a significant positive effect on the performance of SMEs in the Limbe municipality while accessibility have an insignificant negative effect on the performance of SMEs in the Limbe municipality.

This study concluded that road surface conditions, accessibility and connectivity, and road safety performance have the potential to influence the operational performance of SMEs. This positive effect of road surface condition, and road safety performance is significant at 1% which is therefore more than 99% reliable for policy recommendations and decision making as seen from the regression analysis while the negative effect of accessibility is highly insignificant therefore, not reliable for policy recommendation and decision making.

Furthermore, this study recommended that SMEs in the Limbe municipality should work in collaboration with the city council to address the issues concerning road surface condition, and road safety since it will minimise the problem they are faced as a result of Road networks since these variables have proven to have a positive effect on the performance of SMEs operating within the Limbe municipality.

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

The development of road networks has played a crucial role in human civilization and economic progress for centuries. From ancient trade routes like the Silk Road to the construction of modern highway systems, road networks have facilitated the movement of goods, people, and ideas across continents. Over time, advancements in engineering, technology, and infrastructure have led to the expansion and improvement of road networks worldwide.

In Ghana, road transport accounts for 96 to 98% of the overall national delivery of people and goods (Naazie, 2014) The medium-term programme of the Ministry of Roads and Transport does not envisage any substantial realignment of the overall transport modal mix (Naazie, 2014). Thus, road transport remains the backbone of the national economy. As a result, the performance of the road transport system is of crucial importance for individual mobility, commercial activities, public welfare, and the economic growth and development of the nation. Bad roads impede development including transportation of goods and services from one location to the other.

According to Akuirene et al (2020), there is common knowledge that road traffic mortality is more prevalent in low- and mid-income countries compared to the developed nations and this is attributable to good roads as well as safety policy implementation that has yet to develop commensurably along with economic development. Nigeria recorded her first traffic accident in Lagos in 1906 and purportedly remained low over a long time in the country due largely to low vehicular population. It argued that from the 1970s following remarkable improvements in the economic prosperity of the country arising from the oil boom, the magnitude of the accident problem increased (Iyanda,2019) However, the effect of bad roads has yet to be evaluated in some of the oil-producing communities.

One of the key factors contributing to the historical state of Cameroon’s road network is the country’s colonial legacy. During the colonial era, road construction and maintenance were primarily focused on connecting resource-rich regions to coastal ports for the export of commodities. This imbalanced approach resulted in limited attention given to the development of an extensive and well-connected road network that could support SMEs in the transport and logistics sector (Epie, 2010; Kamga et al., 2019).

In the years after independence, Cameroon’s road system also suffered from neglect and insufficient funding. Inadequate funding, unstable political environments, and conflicting development agendas impeded the appropriate upkeep and growth of the transportation infrastructure. The difficulties experienced by SMEs were exacerbated as a result of numerous roads deteriorating and new infrastructure development projects being postponed or abandoned (Njoya et al., 2022; Tchamyou et al., 2021).

In addition, the road network in Cameroon was further taxed by the country’s recent fast urbanization and population increase. The efficiency of SMEs in the transportation and logistics industry was severely impacted by traffic jams and delays caused by the combination of rising transportation demand and insufficient road capacity. The difficulties were made worse by inadequate planning and growth of the road infrastructure to meet the expanding demands of SMEs and the general public (Bongbong et al., 2021; Fokam et al., 2021).

The Cameroonian government has realized in recent years how critical it is to fix the problems with the road system and how they affect small and medium-sized enterprises. Numerous initiatives, including public-private partnerships, foreign aid, and investments in road construction and maintenance projects, have been used to try to improve the quality of road infrastructure. For SMEs in the transport and logistics industry, these initiatives seek to improve connectivity, lower transportation costs, and encourage the effective flow of goods and services (Nkwetta et al., 2021; Kamgnia et al., 2020).

However, despite these ongoing efforts, challenges remain, and the historical legacy of a Road network continues to affect the performance of SMEs in Cameroon’s transport and logistics system. The factors that have shaped the current state of the road network and highlight the need for sustained investment and strategic planning to overcome the long-standing challenges faced by SMEs in the sector (Atemnkeng et al., 2018; Ngaleu et al., 2020)

The road sector received the largest percentage of the total granted to the transport sector under the fifth five-year plan, which is around 68%, in recognition of the vital role that roads play in overland transportation. In 1982, there were 64,000 kilometresc of domestic road networks, of which about 33,000 kilometres were prioritized and categorized as national, state, and provincial infrastructure.

Of the priority routes, about 2,500 kilometres, or 8%, were paved, with the remaining great majority being dirt roads. Road surfaces had to be maintained in a way that was suitable for vehicle traffic, so frequent service and maintenance were necessary. In addition, there was a continuous need for the rehabilitation and maintenance of heavily muddy roads, which frequently occurred as a result of constant flooding throughout the rainy season.

However, the nation’s repair and maintenance system were deficient in both labor and supplies. A 32-kilometer route connected the two seaside towns of Limbe and Buea, which could be reached in 40 minutes by car and 50 minutes by a larger vehicle. The Kumba-Mundemba road, which is reported to be 114 kilometers long, was the worst route to drive on at any time of year since it took up to 3 hours 40 minutes for small bus passengers to get to their destination and up to 4 hours 30 minutes for lorries.

The approximately 156.7-kilometer Kumba-Mamfe roadway might be travelled in two hours and thirty minutes if traveling in a motorcar. This was probably due to some rehabilitation work done on the latter road. In light of these problems, the government of Cameroon declared the enhancement of road maintenance and rehabilitation systems a top priority issue concerning the road sector under the fifth five-year plan.

1.2 Statement of the Problem

One major issue that has a negative impact on the operations, competitiveness, and overall growth potential of Small and Medium Enterprises (SMEs) in Cameroon is the poor road network in the transport and logistics sector.

Majority of road in the country are around 60years are expired, adequate road infrastructure and poor accessibility make it difficult to move goods and services efficiently, which drives up transportation costs, enable delays, and creates operational inefficiencies for SMEs in the industry. For SMEs, the poor state of the road surfaces in the Limbe municipality presents a challenge. Uneven surfaces, potholes, and cracks make driving challenging and raise the expense of car maintenance.

When SMEs depend mostly on road transportation to deliver goods, they run the risk of experiencing delays, vehicle damage, and higher operating costs because of the frequent repairs required. Inadequate transportation infrastructure and road conditions make it more difficult for people and goods to travel throughout cities, according to Naazie (2014). Inadequate infrastructure may also deter foreign and local investors from investing in our metropolitan areas. City-level productivity barriers, such as inadequate infrastructure, decreased business and household productivity, which had an impact on the economy’s overall productivity.

The accessibility and connection of SMEs in the Limbe municipality are severely impacted by a poor road network. It is challenging for enterprises to access markets, suppliers, and customers due to limited or poorly maintained roads. SMEs may have trouble effectively reaching their target market, which could lead to product delivery delays, higher transportation expenses, and less customer satisfaction. Additionally, inadequate road infrastructure restricts the expansion of SMEs into new markets and hampers their growth potential.

The presence of a Road network in Limbe municipality compromises road safety for SMEs. Poorly maintained roads, lack of proper signage, inadequate lighting, and insufficient road markings increase the risk of accidents and injuries. SMEs involved in transportation and logistics operations face safety concerns for their drivers, vehicles, and cargo. Road accidents not only pose a threat to human lives but also result in financial losses for SMEs due to vehicle damage, cargo loss, and potential legal implications.

These challenges related to road surface condition, accessibility and connectivity, and road safety directly impact the operational performance of SMEs in the Limbe municipality. Delays in delivery, increased operating costs, limited market access, and safety risks all contribute to reduced efficiency, lower profitability, and hindered growth potential for these businesses. Thus, has cut the attention of this researcher to carry out a study on the effect of Road networks in transport and logistics systems on the performance of SMEs in the Limbe municipality.

1.3 Research Question

1. What is the effect of road surface conditions on the operational performance of SMEs in the Limbe municipality?
2. To what extent does accessibility affect the operational performance of SMEs in the Limbe municipality?
3. What role does road Safety performance has on the operation performance of SMEs in the Limbe municipality?

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