A growing Transportation and Logistics Industry in Africa represents opportunities for our investors and experienced developers
At ThinkBig Africa,our high priority is placed on the development of Transportation and Logistics-related infrastructure in African emerging economies.
Regional transport networks will improve due to a number of regional and national-level transportation infrastructure development projects. Long-term business growth prospects include multi-modal transportation, cold chain logistics, intelligent transportation systems, warehousing and freight forwarding. Growth in e-Commerce will transform e-Logistics delivery models, and the online freight services market will gain traction. The adoption of digital technologies will accelerate growth in the warehousing segment during our forecast period.
Africa’s poor transport infrastructure although a major challenge for logistics operators, presents us a real opportunity on the back of the numerous large-scale projects across Africa which aim to improve transport networks.
- Drone Technology has the potential to help logistics operators overcome transport infrastructure challenges, and several projects are underway exploring the use of drones in Africa.
- Future demand for logistics property will be shaped by the rapid growth of online retailing in Sub-Saharan Africa, which is being driven by the increased penetration of smart mobile devices. The African online retail sector is estimated to be worth US$50 billion, representing a six-fold increase in value in the space of five years.
- Around 90% of Africa’s trade happens by sea, making its ports crucial locations in logistics networks. Several major new ports are under construction across the continent and sites near to ports are highly desirable for logistics property development.
As Sub-Saharan Africa undergoes a wave of modern commercial property development, the logistics sector is emerging as a focus for activity. Already some leading Middle Eastern developers have targeted the sector; Kuwaiti based Agility has ambitious plans to create a network of logistics hubs across Africa, while Dubai’s DP World has been granted a concession to develop and operate a new logistics centre in Kigali, Rwanda.
GCC countries such as the United Arab Emirates and Saudi Arabia have gained global prominence with their world-class infrastructure and transport systems. Combining their strength in developing high-spec warehousing and sophisticated infrastructure, with the growth potential that the African logistics market offers, the opportunities cannot be emphasized enough.
We realise however that for this to materialise, efforts need to focus on improving security, increasing transparency and combating corruption, along with establishing robust legal frameworks.