May 19, 2020

This is how global logistics professionals see African markets

Nigeria
South Africa
Infrastructure
Middle Class
mahlokoane percy ngwato
2 min
This is how global logistics professionals see African markets

According to a recent survey of global logistics executives, consumer spending fuelled by a rapidly-growing middle class is as important a growth driver for Africa as its mineral and resource demand.

The survey, part of the 2016 Agility Emerging Markets Logistics Index, ranks South Africa, Nigeria, Kenya and Ghana as the most promising markets in Sub-Saharan Africa. Lack of infrastructure, inadequate power generation and corruption continue to curtail growth in African economies, according to the more than 1,100 executives responding to the survey.

Our sister publication Supply Chain Digital originally covered this story, read it here

Only 21.2 percent of logistics industry executives surveyed said their companies have operations there, while another 12.7 percent said they are in the planning stages to enter markets on the continent. Around 43 percent said they have no plans to set up in Africa.

Geoffrey White, CEO of Agility Africa said: “The results show a serious disconnect between the perception of the market and actual opportunities. These are some of the world’s fastest-growing economies. Africa’s requirement for logistics services and supply chain expertise is huge and growing every day. At the same time, many of the companies that need logistics to enter the market don’t know how to get started in Africa or aren’t willing to take the risk.

Read how Bigen Africa is helping to close the continent's infrastructure gap here.

The leading markets in Sub-Saharan Africa are South Africa (No. 16) and Nigeria (17). South Africa is home to the continent’s most advanced logistics industry and transport infrastructure, but its economy has been hobbled by chronic power outages, falling commodity prices, a plunging currency and labour unrest.

Other countries in the region fall toward the bottom of the rankings: Ethiopia (37), Tanzania (40), Kenya (43) and Uganda (45). Among countries in North Africa, Morocco ranked No. 20, trailed by Egypt (22), Algeria (30), Tunisia (36) and Libya (41).                                 

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SOURCES: [Agility Africa; Supply Chain Digital]                        

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