Today the rate of return on foreign investment in Africa is higher than in any other developing region, according to a recently released report by the McKinsey Global Institute “Lions on the move: The progress and potential of African economies” points out that Africa’s collective GDP, at $1.6 trillion in 2008, is now roughly equal to Brazil’s or Russia’s. And while South African companies are well positioned to take advantage of the growth opportunities – particularly those in logistics – this is also where one of the biggest challenges lies. Africa’s logistics costs are on average five times those of the BRIC nations – Brazil, Russia, India and China, according to the report. Among the key findings: • Africa’s growth acceleration was widespread, with 27 of its 30 largest economies expanding more rapidly after 2000. • Future economic growth will be supported by Africa’s increasing ties to the global economy. • Rising demand for commodities is driving up prices of commodities. And Africa is gaining greater access to international capital. Total foreign capital flows into Africa rose from $15 billion in 2000 to a peak of $87 billion in 2007. • The rise of the African urban consumer also will fuel long-term growth. Today, 40% percent of Africans live in urban areas, a portion close to China’s and continuing to expand.