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Logistics

German line makes strategic move in Africa

09 Dec 2024 - by Staff reporter
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Hapag-Lloyd is strengthening its connections in East and Central Africa with the opening of a new office in Kampala, Uganda.

The carrier believes that Uganda’s strategic location provides excellent connections to five neighbouring countries in East and Central Africa.

As a landlocked country with no direct access to the sea, it relies on neighbouring ports, such as Mombasa in Kenya and Dar es Salaam in Tanzania, to facilitate its international trade.

“The Port of Mombasa handled approximately 200 000 TEUs of exports in 2023, with 22% of the volume originating from Uganda, demonstrating the country’s significant role in the region’s trade flows. Most of the cargo between Uganda and the ports is transported by trucks,” says Lars Sorensen, senior managing director region Middle East at Hapag-Lloyd.

“Apart from exporting its own commodities, Uganda’s importance also lies in its role as a business hub for packaging and consolidating a diverse range of commodities that move throughout the region. Key exports passing through Uganda include timber and dry hides from South Sudan, cocoa, minerals, and timber from the Democratic Republic of Congo, as well as coffee from Rwanda. These flows highlight Uganda’s growing impact on East African exports and its potential for facilitating trade across borders.”

Opening the office in Kampala is part of the company’s long-term strategy to establish an early presence in emerging markets with high potential, says Sorensen.

“With Kampala as our new hub, we can strengthen our position in the African market, improve service delivery, and better meet the needs of our customers in Uganda and neighbouring regions.”

The Ugandan economy is on the rise, with an expected GDP growth of 5.9% in 2024.

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