Express cargo records double-digit growth

SMMEs have tapped into niche markets in the African airfreight sector that have enabled them to post doubledigit growth over the past year and to position for future expansion on the continent. Paul Danvers, managing director of African Distribution Network (ADN), a neutral wholesaler providing freight and courier services via an established African network, is one such company that is positive about its future on the continent. “ADN has experienced double-digit growth in express airfreight into Africa, specifically into southern Africa, and the key destinations of Nigeria and Kenya. The company provides bespoke packaging and crating, which not many companies offer,” Danvers said. It has established offices in Johannesburg, Cape Town and Swaziland and services the rest of Africa via its agency network. Danvers said the company had seen the greatest demand for cargo such as machine or engineering spares, hi-tech replacement parts and spares for the automotive sector. “Almost 80% of our cargo moves from Johannesburg and into West Africa (Namibia and Nigeria), East Africa (Kenya) and then to the southern African countries of Botswana and Swaziland. Zambia is also a key destination,” Danvers said. But the market is not without its challenges and top of the list is the sourcing of reliable air capacity to developing routes. Pricing and the ability of partners to clear and deliver goods at their destination in a timecritical manner are also issues. “The sector is massively competitive, with a great many companies providing airfreight services, which is why pricing and service is key,” he said. Danvers said future challenges would be to provide a reliable service to developing regions such as northern Mozambique. “The challenges here will be the availability of uplift into these areas and local political stability,” he said. But he remains upbeat about business prospects on the continent. “Besides good revenue growth, ADN has invested in manpower and infrastructure, both of which are a reflection of current business performance and future development,” he said.