As cross-border volumes
continue to grow,
the potential and
opportunities in Africa
are being unlocked, according to
Yvonne Palm, managing director
at ECU Worldwide SA.
“Current statistics show that the
logistics market is growing at a rate
of 50% or more annually in the
majority of Africa. With the rapid
growth within the last few years
into Africa, companies have had to
align themselves and adapt to reach
a part of this developing market,”
she told FTW. “Our volumes have
seen positive progress within the last
few years due to our focus on overborder
growth. It is a region that we
are extremely positive about.”
But it’s not a region without
challenges.
“There are some real threats
– with the biggest probably
being the necessity to adapt
to and accommodate the
cultural diversity, different
laws, governance and lack of
infrastructure
in some areas.
At the end
of the day
everyone has
the same goal of
ensuring they
get best rates
and service in
the market. The
biggest fear for
many – and a
big threat shipping to and from
African countries – is the lack of
services and the potential loss of
cargo.”
Overcoming this should be the
key focus, in her view.
“We are working daily
on addressing threats and
analysing new opportunities for
this vast market. To understand
all the threats that we are faced
with we need to understand
in-depth what
we are dealing
with and the
only way you
can really
understand is by
having expertise
within that
country.”
ECU
Worldwide has
invested time
and effort in this process over
the past few years and now has
fully equipped agents in at least
49 of Africa’s 54 countries.
“This ensures that we are
updated on the latest regulations
that are implemented within
the respective countries for
LCL, FCL and airfreight. There
are many small forwarders
who shy away from over-border
opportunities because they have
many uncertainties moving
cargo within this market – but
we use our considerable agent
footprint to create logistical
solutions from all the major sea
and airports, over border into
the landlocked areas of Africa.”
With growing competition
in the region, it is critical for
companies to understand the
different markets in which each
client is operating.
“Costing is just as important,
as the outlook for the short
term remains that tariffs will
continue to be cut.
“One has to continuously work
on cost to remain competitive.”
ECU Worldwide now has
fully equipped agents in
at least 49 of Africa’s 54
countries.
– Yvonne Palm
