Logistics hubs helping to reduce cost of trade

Logistics hubs are being established across Africa as countries seek to position themselves as gateways for regional trade. They stretch across the continent. Moroccan government policies support the growth of the Tanger Med Port and Free Zone, which is one of Africa’s largest logistics hubs, with industrial zones and advanced port infrastructure. The Tanger Free Zone (TFZ) has four export-oriented free trade zones, which have attracted investment from foreign companies in the automotive, aeronautics and textile sectors targeting the European market. In Egypt, the policy support focuses on the facilitation of Suez Canal trade, the expansion of port capacity and establishment of logistics hubs in major ports like Alexandria, Damietta and Port Said. Private sector investment in newer facilities in the Suez Canal Economic Zone include the DP World logistics park in Ain Sokhna. The Red Sea port of Ain Sokhna is being redeveloped into one of the region’s most advanced smart ports. Along the east coast, Kenya has established itself as an East African logistics hub through the digitisation of tax and customs processes, and long-term government support for the sector. The country’s logistics parks include Tatu Industrial Park and ALP North Logistics Park in Nairobi, and the emerging Meru Industrial Park which focuses on agriculture, along with 15 gazetted special economic zones (SEZs). Nairobi is developing as an air cargo hub, supported by agricultural exports. Logistics parks being developed in Tanzania include the Kwala Inland Dry Port, the East Africa Trade and Logistics Centre in Dar es Salaam, and an e-commerce hub by Asyad Group. A Chinese-built and operated East Africa Commercial and Logistics Centre (EACLC) was opened in August to serve as a hub for Chinese trade with the region. Rwanda has established logistics parks such as the Kigali Logistics Platform (DP World Kigali Logistics Centre) and facilities operated by Africa Global Logistics (AGL) within the Kigali Special Economic Zone (KSEZ), to serve as a logistics hub for Central and East Africa. Logistics parks in Zambia include a newly launched York Commercial Park in Lusaka and the Nakala Logistics Park, which has new steel warehouses. The Zambia Logistics Centre near the DRC border has been developed by Smart Globe, which in July entered into a logistics services agreement with COSCO Shipping Africa to provide warehousing, storage, stockpile management, inventory control, and container-related operations at the Zambia facility, according to a joint media release. On the west coast, in April Maersk opened a 10 000-square-metre full- service warehouse in the port of Dakar to serve as a regional logistics hub. Senegal also has five SEZs, with a sixth planned for the Louga region. In March, ground was broken for the Nambaza Logistics Park in Walvis Bay, Namibia, which is set to be operational in 2026. ER