Trade in Africa has continued to present huge opportunities for both established and emerging markets, Charles Brewer, Managing Director for DHL Express Sub-Saharan Africa has noted.
Brewer said, with both markets exploiting the opportunities presented, Africa’s economic development will accelerate “as stronger connections and trade relations are forged between SSA and the rest of the world.” This however needs to be supported by innovative logistics supply chains.
The managing director disclosed that DHL Express Sub-Saharan Africa has been experiencing strong import and export trade volumes and forecast has shown that the growth would continue.
“The first half of 2014, revealed strong continuing growth for DHL Express Sub Saharan Africa’s top three import trade lanes: the United States, France and China while the top three Sub Saharan Africa’s export trade lanes were to Great Britain, the United States and France.”
Deutsche Post DHL‘s recently released second quarter results also showed an 11 percent increase in global operating profit, owed in part, to increased profitability within the company’s business unit.
The global market leader in logistics however noted that Africa faces the challenge of connectivity. The continent is the world’s least connected in terms of ease of moving people, finance and information, according to DHL’s Global Connectedness Index.
While the continent work towards tackling its connectivity challenges, Brewer stated that regional integration will continue to play a key role in unleashing Africa’s growth potential.
“Some of the areas being talked about and focused on include a continental free trade zone, single customs union, a common currency, etc. all of which should significantly improve intra-regional trade, which presently is less than 20 percent,” Brewer notes.
East Africa Community (Kenya, Uganda, Tanzania, Rwanda and Burundi) is making huge progress in regional integration, with the region even undertaking joint projects, among other things. They are working assiduously on the development of some trade boosting areas such as projects to improve the roads, ports, rail, customs border environment and have recently introduced a common visa for the region; steps key to the economic growth of the region.
DHL Express Sub Saharan Africa’s growth in the first half of 2014, according to the company, was driven by robust growth in the Energy sector – particularly due to exploration companies mobilizing new campaigns in countries such as Cameroon, Congo and Gabon.
Brewer said DHL plans Africa expansion in 2014 and beyond, with 100 retail locations expected to be added to its over 3500 existing retail locations.
“SMEs remain an integral part of our growth story and a core focus is to continue making logistics more accessible,” said the managing director, who expressed belief in a great future for Africa, saying, “It’s time for Africa to focus, connect and grow.”
