Logistics in Africa: a changing landscape between different players
By Ibrahima DIALLO
February 14, 2022 / 11:16 p.m.

In the development strategies of various governments and private actors, the modernization of West African logistics circuits has been a major challenge to be met for more than a decade. Even if significant progress has been made, the new actors, very dynamic in their approach, seem to invite this vital sector into a new era.

Africa is experiencing sustained demographic growth and rapid growth in consumption, particularly with a population of over a billion inhabitants.

Indeed, the volumes of goods and services imported and exported, by sea or air, have been experiencing a strong and constant increase for ten years and should maintain this course during the coming years according to UNCTAD.

The fast moving consumer goods (FMCG) sector, as well as the logistics sector, which was disrupted during the crisis, are the biggest winners of this increase.

In its forecasts, Dynamar, the Dutch consultant, which each year establishes a hierarchy between the world's port locations whose traffic has exceeded one million containers, announced an annual increase of 5% in the volume of containers in West Africa for 2021 and will reach 4.3 million TEUs.

The port sector is characteristic of the dynamism of logistics in this region of Africa. Many ports are trying to become the regional hub of West Africa, for example the ports of Lomé, Freetown, San Pedro, Dakar, etc. have benefited in recent years from major modernization and capacity increase works.

Towards a strengthening of the sector

The time has come for renewed growth and consolidation. Traditional logistics players on the continent, such as CMA CGM, Maersk and MSC, continue to increase their presence on the African continent.

A possible turning point in this era of mergers and consolidations is the planned sale of the African ports of the French giant, Bolloré, in exclusive negotiations with the Swiss MSC for the sale of its historic port activity in Africa.

This financial operation, the cost of which is estimated at nearly 5,7 billion euros, would mark a turning point in the African logistics and port landscape.

Indeed, Bolloré Africa Logistics has significant infrastructure on the continent, particularly in 20 countries, a considerable advantage for its future buyer.

CMA CGM, the other French giant in the sector, has just strengthened its development in last-mile logistics with Colis Privé, the specialist in home and relay point parcel delivery. CEVA Logistics solutions in e-commerce have also been implemented by CMA CGM, in order to strengthen its presence in Africa.

We are seeing the arrival of new players considered to be mid-players, including that of the Emirati DP World, which announced on July 8, 2021, its intention to acquire one of the largest maritime transport platforms in South Africa, Imperial Logistics. This transaction would allow the Emirati to spread its influence on the sector in several African countries.

Furthermore, emerging players such as R-Logistic are appearing in the panorama and participating in the local development of African logistics networks.

A subsidiary of R-Logitech, the port infrastructure & logistics branch of Monaco Ressources Group, R-Logistic positions itself as an alternative to majors in multimodal transport in the sub-region thanks to its 14 African subsidiaries.

In this sense, Frédéric Platini, CEO of R-Logitech declared: "Our added value (on the African market) lies in our solid local presence, our agility, but above all in our integrated offers allowing us to propose tailor-made logistics solutions for our customers on the continent, through our port platforms in Europe and Asia."

According to a report produced by the Africa CEO Forum and the strategy and finance firm Okan, authors of African Logistics. Time for Revolution, the modernization of African logistics constitutes a turning point but also one of the most important projects facing the continent today.

Now, many challenges must be met to bring African logistics into line with those of the world's powerful regions. And according to the report, it will be necessary to strengthen the capacities of States, structure intra-African logistics, accelerate the modernization of ports and roads, and take into account the demands of the middle class.

 

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