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Africa is fast becoming a logistics powerhouse, driven by surging demand, strategic positioning, and rapid growth. Valued at $967 billion in 2023, the Middle East and Africa logistics market is set to grow by 5.4% annually through 2032. A young, urbanising population is fueling this expansion, while Africa’s location along the Suez Canal, which handles 12% of global trade, strengthens its role in connecting Asia, Europe, and the Americas. As infrastructure projects and agreements like AfCFTA reshape the landscape, businesses are tapping into Africa’s potential as the next key player in global supply chains.
E-commerce Surge: The Driving Force Behind Innovation
The African e-commerce sector, valued at $33.3 billion in 2022, is projected to reach $46.1 billion by 2025. Platforms like Jumia and Takealot are expanding rapidly, driving demand for more efficient logistics systems. Third-party logistics (3PL) providers are leveraging digital solutions to optimise deliveries, reduce costs, and enhance service quality. Technologies such as last-mile automation and real-time tracking are meeting rising consumer expectations across the continent.
Infrastructure Investment: A New Era for Connectivity
Africa is witnessing monumental infrastructural growth, with major investments in transport networks such as ports, railways, and roads. Key projects like the Lamu Port in Kenya and Bagamoyo Port in Tanzania are designed to enhance intra-Africa trade by providing deep-water port capabilities to handle global trade flows. In addition, the Mombasa-Nairobi Standard Gauge Railway (SGR) is improving cross-border connectivity, reducing logistics costs, and increasing the speed of goods movement. While infrastructure gaps remain, these ongoing improvements are pivotal to boosting Africa’s logistics capacity.
AfCFTA: The Catalyst for Seamless Trade Across Africa
The African Continental Free Trade Area (AfCFTA) is transforming Africa’s trade by cutting tariffs and easing barriers, aiming to boost intra-African trade by over 50%. Signed by 54 nations, it is creating a unified market that streamlines cross-border logistics and lowers transport costs. AfCFTA is opening new trade corridors and driving growth in agriculture, manufacturing, and technology.
Private Sector Growth and Digital Transformation
The rise of logistics-focused startups such as Kobo360 and Lori Systems is modernising Africa’s freight and supply chain industries. These companies leverage advanced digital platforms to streamline operations and reduce costs by connecting truck owners, freight forwarders, and shippers. Additionally, international logistics companies are investing in African ports and freight networks, enhancing the continent’s logistics capacity and services to support growing demand for regional and global trade.
Looking ahead, Africa is not only set to serve its own markets but also plays a crucial role in global supply chains, creating significant growth opportunities for businesses. The future promises both growth and transformation, making it an exciting time for businesses to tap into its potential. DahNAY is leading this charge, with the opening of a new office to bolster regional support and drive innovation in logistics.
