The African logistics market has seen a steady growth between 2013 and 2018 registering to a single digit CAGR throughout this duration. The continent is tremendously rich with natural resources and augment in mining of coal has supported the market grow. The foremost exporting partners comprise United States, China and Japan. Infrastructure has been problematic for Africa and China has supported tremendously to curb the issue. China has made a number of investments to advance the the roads, ports and railways which has assisted in the growth of the market. The Freight Forwarding Market underwrites the most towards the complete logistics market of Africa.
According to the report analysis, ‘Africa Logistics and Warehousing Outlook to 2023- By Countries (South Africa, Kenya, Tanzania, Uganda, Nigeria, Namibia and Botswana), Mode of Freight (Road, Rail, Air, Sea and Pipeline), By End Users and by 3PL, By Type of Warehouses’ states that Most of the African regions have few dominant international freight forwarding players in the market. The shortage of infrastructure and capital make the local players resort to third party logistics, which is projected to be the similar in the future. Some of the foremost companies comprise Bollore Africa Logistics, Kuehne Nagel, DHL, Maersk, DSV Panalpina, CEVA Logistics and DB Schenker. The industry is at a growth stage in terms of parameters such as technology, proficiency and service portfolio but not pricing as the logistic cost is too high leading to contraction of manufacturing segment in the GDP.
Contract logistics is well-known as the propelling force for the freight forwarding market and is opted frequently. The market has observed a growth in its study duration resulting in a single digit CAGR. Food and beverages have been the market’s propelling the force as most of the consumer spending is towards the similar. Road freight was witnessed to be the most preferred mode of transportation owing to the enhancement in the road infrastructure; followed by sea and rail freight. Future trends in the market aim on Africa having less trade with developed nations and more with underdeveloped nations.
Furthermore, the warehousing market of the continent is at its increasing stage. The food and beverages market are the dominant user of the warehousing market across Africa. Open storage is preferred the most as associated to closed and cold storage warehouses. East Africa will lead in the requirement for industrial space, which is set to augment at six per cent annually in Ethiopia, and at 5.1 percent and 3.6 percent in Uganda and Kenya, respectively. In response to the augmenting requirement for warehousing, Africa North Africa is projected to experience a gradual growth over the next 10 years. Egypt and Morocco presently have higher requirement estimates than East and West Africa in terms of size but are set to augment at a slower rate.
The overall logistics and warehousing market of the continent is projected to augment by a single digit CAGR from 2018 to 2023. Growth in intra-regional trade and projects such as AfCFTA has assisted in the same. The major trigger of the logistics and warehousing market in the long run is the development of infrastructure and construction segment. This has caused a spree of developments in the country which has augmented the trade and warehousing activity in the continent. Investments in progressive technologies solutions such as autonomous logistics, real-time tracking and automation in order to deliver an improved customer service will also boost the market of Africa.
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Africa Logistics and Warehousing Market Revenue
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