Growing African middle class boosts freight demand

Africa’s logistics supply chain is responsible for delivering growing numbers of refrigerators, television sets, mobile phones and automobiles, with demand driven by a growing middle class. Africa’s middle class spent an estimated US$680 billion in 2008 – or nearly a quarter of Africa’s GDP based on 2008 purchasing power parity, according to a market brief prepared by the African Development Bank. Assuming consumption expenditure in Africa continues to grow at roughly the same rate as the past 20 years, by 2030 Africa will likely reach US$2.2 trillion in annual expenditures and comprise about 3% of worldwide consumption, it says.