Africa: In line with sub-Saharan Africa’s (SSA) projected economic growth of 4.9 per cent this year — which is double the projection for advanced economies (at 2.4 per cent) — DHL expects 2015 to be the year of growth for the logistics industry on the continent. The global logistics firm pegs this on growing consumer demand and a rapidly developing e-Commerce industry.
Charles Brewer, the managing Director of DHL Express SSA (pictured), made the projection during the release of Deutsche Post DHL (DPDHL) Group’s full-year results last week. The firm closed 2014 with revenues of 56.6 billion euro (Sh5.7 trillion), up 3.1 per cent from the previous year.
Mr Brewer attributed the firm’s performance to its increased focus on e-Commerce and emerging markets, including Africa.
A new report by Stats, a data and content company, revealed that despite Africa lagging behind other regions when it comes to the development of online infrastructure, business-to-consumer (B2C) sales will grow in double digits in the next three years.
Brewer said that as such, a key focus for DHL is to strengthen connectivity, both within the continent and globally, which will be crucial in meeting the growing market in the continent and assist in driving growth.
“There is a growing B2C e-Commerce market in Africa due to the development and accessibility of technology, so it is no longer just the larger corporations that need to make use of logistics and delivery services, but individual consumers and small businesses,” he said.
“Our goal is to develop the necessary infrastructure in Africa to make the global market more accessible. Our aggressive expansion strategy has seen us grow our retail presence from 300 outlets to over 3,800 outlets in just over three years.”
Brewer was also positive that intra-African trade will continue to grow in 2015.
“There are a number of successful trade blocs in place that focus on connecting the region better. A good example of this is the recent and rapid progress made by the East Africa Community [Kenya, Uganda, Tanzania, Rwanda and Burundi], which is working incredibly hard ... to improve roads, ports, rail and, critically, the customs border environment, and has recently introduced a common visa for the region.”
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