Africa’s logistics sector is on the rise, attracting big bets from investors who see a lucrative market and a strategic hub within the global network. With optimism at a 15-year high, a new report reveals significant investor interest in expanding or entering the continent for the first time.
Key findings:
- Investor confidence surges: 47.4% plan additional investments, 14.2% are new entrants, and only 6.6% consider scaling back.
- Infrastructure upgrades: Renovations in ports and railways are underway, targeting opportunities like intra-African trade.
- Tech-driven solutions: Startups are leveraging technology to build logistics services across the continent.
Examples of investment:
- Lobito Corridor: A major upgrade will link mineral-rich DRC, Angola, and Zambia to the Atlantic, with Trafigura and Kamoa-Kakula copper mine committing to transport volumes.
- TAZARA railway: Negotiations are underway for a $1 billion investment to revitalize this Zambia-Tanzania link.
- Maputo port: DP World and Grindrod will invest $2 billion to expand its capacity and efficiency.
Homegrown innovation:
- Logidoo: Moroccan startup expands its end-to-end logistics offering to 5 new African markets.
- Logistics tech boom: Over 1,200 tech startups operate in Africa, with $210 million raised last year.
The AfCFTA effect:
- This free trade agreement is expected to boost intra-African trade by 40%, further driving logistics demand.
- UNECA urges African governments to invest in infrastructure and regulations to maximize AfCFTA benefits.
Overall, Africa’s logistics sector is poised for significant growth, offering exciting opportunities for investors and fostering economic development through improved connectivity and trade.
Additional notes:
- I shortened the story while keeping the key points.
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- I emphasized the role of technology and the AfCFTA.
- Source: Techcabal