Browsing: African logistics market

An expanding middle class and significant advances in internet and mobile adoption have strengthened the belief that African countries are ready for e-commerce success.

The African logistics market has proven itself ahead of the curve in many areas, with endless potential and opportunities lurking just beneath the surface.

  • Investors have mostly failed to capitalise on Sub-Saharan Africa’s e-commerce opportunities due to logistical hurdles and infrastructural inefficiencies.
  • Development finance institutions must take the lead in investing actively in asset-heavy logistics firms, while venture funds should keep focusing on asset-light firms.
  • As the African market expands, global corporations and local enterprises will exploit the logistics market gaps and emerging opportunities.

It is no doubt that Africa has its share of issues.

Talent retention, a lack of suitable logistical infrastructure and continual modifications and assessments of the regulatory environment remain significant challenges in the world’s fastest-growing continent. But not all is dread and gloom since with expansion comes riches.

The immense potential in the African logistics market

The year 2020 marked the start of a new…

The demand for quality warehousing in Africa has been skyrocketing, especially with the rapid mushrooming and proliferation of e-commerce platforms across the continent.

However, the supply has scarcely risen to meet the burgeoning demand. In 2021, the African e-commerce industry grew by 31 per cent to US$28B in revenues from US$21.4 in 2020; whilst in 2022, the industry is predicted to produce US$33.3B in revenue.

This upward trajectory has largely determined the steady growth of the warehousing and logistics market in the continent. Overall, Global Smart Warehousing Market is valued at USD 14.46 Billion in 2020, and is expected to reach USD 31.57 Billion by 2027 with a CAGR of 11.8 per cent over the forecast period. With the implementation of the African Continental Free Trade Area (AfCFTA) going on its second year, the sector is projected to register robust growth due to increased intra-African trading on a macro-level.