East Africa's prospects are promising, with the region set to achieve a 5% growth rate in 2024. For years, the balance of economic power has been shifting east in sub-Saharan Africa.A recent African Development Bank Economic Outlook report reiterates this, stating that East Africa is projected to achieve the highest growth figures on the continent in 2023/2024.According to Paul Danvers, commercial director at Groupair, logistics companies are closely monitoring this growth as it could indicate increased demand for transportation and shipping services as economic activity expands in the region."The economic growth suggests that demand is set to rise, and such an uptick in demand bodes well for airfreight," he told Freight News. "Potentially, that is because it is important to note that certain commodities like iron and steel transported from South Africa to Kenya will predominantly still use road and sea transport, which Groupair can enable. Yet, numerous other goods exported from South Africa are well suited for airfreight."Danvers said Uganda was emerging as a significant market, maintaining its position as the second-largest trading partner for South Africa, just behind Kenya."The region offers many opportunities across the transport sector, be it road, sea or air, considering the wide range of commodities that need to be move d."He said having a local footprint was critical. "Our holding company has offices in Kenya, a key trade lane for us. The country also serves as a springboard for the greater East Africa region and therefore holds further significance."Asked about challenges, he said with a projected growth of 5% this year, keeping pace was critical, necessitating infrastructure and human resources investments. "Both are crucial to align with and cater to the potential surge in demand."He said volumes to the region were certainly increasing due to increased demand driven by the growth in the East African markets. "This is why our outlook for the region is very positive. The region wants to grow, and we can only benefit from that. With this in mind, we are set to continue to expand the Groupair footprint across East Africa."
Airfreight consolidator prepares for uptick in demand
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