Middle East / Africa
Africa’s and the Middle East’s Freight and Logistics Market are segmented by Function (Freight Transport, Freight Forwarding, Warehousing, and Value-added Services and Other Services) and End User (Manufacturing and Automotive, Oil and Gas, Mining, and Quarrying, Agriculture, Fishing, and Forestry, Construction, Distributive Trade, Healthcare and Pharmaceutical, and Other End Users).
During the past decade, globalization and technology have created new opportunities for internationalization, boosting the supply chains and competitiveness in Africa. Currently, the most important countries in terms of logistics are Algeria, Angola, the Democratic Republic of Congo, Egypt, Ghana, Kenya, Mozambique, Nigeria, South Africa, and Tanzania. Some of them own the most critical ports in the continent: Barra does Dande and Lobito in Angola, Lekki in Nigeria, Musoma in Tanzania, and Lamu in Kenya.
The political instability of some countries makes territorial integration inappropriate in the short term, at least. Domestic markets are predominant in this zone since there is little interaction among regions, which has led to a stagnation in exports. The economy is highly dependent on mining, which represents a third of the Gross Domestic Product (GDP). Morocco is a stable partner. Meanwhile, Egypt and Algeria are the countries with the highest production values, but they are known for how little they interact internationally and because they lack developed logistics corridors. African logistics companies are going beyond megacities and are looking to connect Africa’s rural communities to regional supply chains. While megacities attracting millions of young Africans are growing across the country, Africa’s population remains predominantly rural.
In recent years and despite economic headwinds swirling around the Arabian Gulf, the logistics (link to Projects page) sector continues to occupy the fast lane. Not only is the logistics arena outperforming other major industries, but it is also now rightly regarded as a crucial enabler in the country’s economic diversification efforts.
Despite a sustained period of decline over the last few years affected by a fall in oil prices and geopolitical strife, the Middle East and Africa are fast becoming a region of automotive and supply chain opportunity. Carmakers such as VW, Toyota, GM, Groupe PSA, and Mercedes-Benz are investing in a local assembly, ranging from North African countries including Morocco, Algeria, and Egypt, to sub-Saharan markets such as Rwanda, Ethiopia, Kenya, and Ghana. There are also some notable logistics developments there and in the Middle East.
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