“On the back of the new Intra-regional trade and improving foreign trade ties, the logistics sector in Africa experienced a growth in 2018.”
Analysts at Ken Research in their latest publication “Africa Logistics and Warehousing Outlook to 2023- By Countries (South Africa, Kenya, Tanzania, Uganda, Nigeria, Namibia and Botswana), Freight Forwarding (Mode of Freight (Road, Rail, Air, Sea and Pipeline), By End Users and by Contract Logistics and Integrated Logistics Warehousing (Type of Warehouses, By End Users and by Contract and Integrated Logistics“ believe that the Logistics and Warehousing market of the continent is at its growing stage. Growth in the intra regional trade would help boost the market.
Intra Regional Trade: With the help of the African Continental Free Trade Area there comes an establishment of a single continental market for goods and services which seeks to increase intra-African trade by cutting tariffs by 90% and harmonizing trading rules at a regional and continental level. If the trade agreement turns out to be successful the intra-African trade is expected to increase by 52.3% by 2022.
Growing Third Party Logistics: Growth of Third Party Logistics in Africa has increased by sharing assets, warehousing capacities, and even truckloads. This can enable you to bridge efficiency gaps, avoid under- and over-capacities, reduce the cost of specialized freight services, and eventually foster horizontal collaboration in the sector. This has helped both the prominent and the local players as the former is able to have a larger reach to the clients whereas the latter is able to have an access to their fleet.
Higher Cost of Logistics: The cost of logistics and warehousing in the continent is extremely high as compared to other regions. In some areas of the continent the transport cost even accounts for a higher trade barrier than the import tariffs or any other trade restrictions. For the East African Community the logistics cost range between 1.7% and 2.8% of the GDP of those economies. Even a single day’s reduction in the inland travel times could lead to a 6-8% increase in the exports which is almost equivalent to the increase in exports which would have taken place with a 1.5% cut in import tariffs of a country. It has also been estimated that a 10% drop of the logistics costs could help increase trade by 25% across the continent.
Retailers and Wholesalers are Major End Users: The largest revenue providers for the logistics market are the retailers and the wholesalers. Slower retail growth in South Africa has made the logistics companies explore other countries such as Algeria, Kenya and Angola.
With respect to Algeria, the retail industry logistics is expected to grow by double digits by 2020. The government of Algeria has plans for the construction of a deep water port at El Hamdania which would also act as a catalyst for the growth of logistics in Africa.
Key Segments Covered
Africa Logistics and Warehousing:
By Service Mix (Freight Forwarding, Warehousing and Courier and Parcel Activities)
Africa Freight Forwarding:
By Mode of Service (Road Freight, Rail Freight, and Air Freight)
By Contract and Integrated Logistics
By End Users (Food, Beverages and Consumer Retail, Automotive and Healthcare and Others)
By Type of Warehouses (Open, Closed, Cold Storage)
By End Users (Food and Beverages, Automotive, Consumer Retail, Healthcare and Others)
By Contract and Integrated Warehousing
Africa Companies Covered
Bollore Africa Logistics
Key Target Audience
Freight Forwarding Companies
Freight Forwarding Consultancy Companies
Contact Logistics Companies
Venture Capitalists, PE
Freight Tech Companies
Time Period Captured in the Report:-
Historical Period – 2013-2018
Forecast Period – 2019(E) -2023 (E)
Key Topics Covered in the Report:-
Logistics Infrastructure in Africa
Africa Freight Forwarding Market Overview
Africa Freight Forwarding Market Size Country Profiles (Botswana, Namibia, Tanzania, Uganda, Kenya, Nigeria and South Africa)
Competitive Scenario in Africa Freight Forwarding Market
Company Profiles of Major Players in Africa Freight Forwarding Market
Africa Freight Forwarding Market Future Outlook and Projections
Africa Freight Forwarding Future Market Size
Africa Freight Forwarding Market Future Segmentation
Africa Warehousing Market Sixe
Competitive Scenarios in Africa Warehousing Market
Africa Warehousing Future Outlook and Projections
Warehousing Future Market Size and Segmentation
Snapshot on Africa courier , Express and Parcels Market
For more information on the research report, refer to below link:
Uganda Logistics and Warehousing Market Outlook to 2022/23 – By Rail, Land, Air Freight Forwarding; International and Domestic Freight, Integrated and Contract Logistics Freight Forwarding, By warehousing (Industrial / Retail, Container Freight / Inland Container Depot and Cold Storage), By Courier and Parcel
Nigeria Logistics and Warehousing Market Outlook to 2023 – By Sea, Land, Pipeline, Air Freight Forwarding; International and Domestic Freight, Integrated and 3PL Freight Forwarding; By Warehousing (Industrial/ Retail, ICD/CFS, Cold Storage, Others), By End Users, 3PL Warehousing, Type of Warehouses; By Courier Express and Parcel Logistics and E-commerce Logistics
Ankur Gupta, Head Marketing & Communications