AFRICA LOGISTICS OUTLOOK TO 2023
Africa Logistics Market Overview and Size
The African logistics market has seen a steady growth between 2013 and 2018 accounting to a single digit CAGR during this period. The continent is extremely rich with natural resources and increase in mining of coal has helped the market grow. The major exporting partners include United States, China and Japan. Infrastructure has been problematic for Africa and China has helped tremendously to curb the issue. China has made a number of investments to improve the roads, ports and railways which has helped in the growth of the market. The Freight Forwarding Market contributes the most towards the overall logistics market of Africa.
Africa Freight Forwarding Market
Contract logistics is known as the driving force for the freight forwarding market and is opted frequently. The market has experienced a growth in its study period resulting in a single digit CAGR. Food and beverages has been the market’s driving force as most of the consumer spending is towards the same. Road freight was observed to be the most preferred mode of transportation due to the development in the road infrastructure; followed by sea and rail freight. Future trends in the market focus on Africa having less trade with developed nations and more with developing nations
Africa Warehousing Market
The warehousing market of the continent is at its growing stage. The food and beverages market is the dominant user of the warehousing market in Africa. Open storage are preferred the most as compared to closed and cold storage warehouses. East Africa will lead in the demand for industrial space, which is set to grow 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 growing demand for warehousing, Africa North Africa is expected to experience a gradual growth over the next 10 years. Egypt and Morocco currently have higher demand estimates than East and West Africa in terms of size but are set to grow at a slower rate.
Most of the African countries have few dominant international freight forwarding players in the market. The lack of infrastructure and capital make the local players resort to third party logistics, which is estimated to be the same in the future. Some of the major companies include Bollore Africa Logistics, Kuehne Nagel, DHL, Maersk, DSV Panalpina , CEVA Logistics and DB Schenker .The industry