25 Aug
Africa’s freight logistics industry is projected to expand significantly in the coming years, driven by regional integration, trade agreements, and rapid urbanisation. According to the Africa Freight Logistics Market report, the sector is valued at $162.96 million in 2024 and is expected to reach $285.29 million by 2033, reflecting a CAGR of 6.42%. While intra-African trade still represents only 17% of total commerce, the African Continental Free Trade Area (AfCFTA) has the potential to increase trade volumes by more than 50%, creating opportunities for a market of 1.3 billion people.
South Africa stands out as the continent’s logistics leader, holding nearly a quarter of the Middle East and Africa freight market share in 2024. Its advanced infrastructure—particularly the Port of Durban and its integrated rail-road-port networks—supports regional trade and attracts foreign direct investment from global players like DHL, DSV, and DB Schenker. Recent projects, including a $100m logistics hub in Johannesburg and expansions on the Maputo Corridor, highlight growing confidence in southern Africa’s role as a strategic gateway.
Nonetheless, challenges remain. Underdeveloped transport systems, energy shortages, and costly inefficiencies at borders hinder growth. Currently, over 80% of freight relies on road transport, while limited rail and rural access create bottlenecks. However, digitalisation offers a promising path forward: initiatives like Rwanda’s paperless clearance system have already cut import delays dramatically. Combined with corridor investments such as the Lobito Atlantic Railway, Africa’s freight market is on course to become more efficient, resilient, and competitive.
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source: freightnews.co.za
