Af r ica’s population growth is good news for logistics operators. Simply put, more people means more cargo.According to the United Nations, the continent is set to double its population to 2.5 billion by 2050. Nigeria is forecast to have around 400 million people by then, overtaking the United States as the world’s third-most-populous country. Hennie Heymans, CEO of DHL Express SSA, says it is the development of secondary cities across the continent that is of particular importance to the logistics sector. “The continent is currently home to 1.3bn people. This is expected to increase to 2.5bn. The relevance of moving from 17% of the world population to that 25% is that it offers entrepreneurial opportunity – especially if one considers that the continent is also home to the youngest population in the world,” he told Freight News. “The development of secondary cities across the continent means increased economic activity and that, in turn, offers logistics opportunity. Africa will be home to at least 84 of the fastest-growing cities in the world. With a growing population, increased cities, and more entrepreneurs, this continent has the ability to trade itself to prosperity.”Heymans said economic prosperity always presented an opportunity for logistics operations. “To unlock the opportunity it is, however, important that steps are taken to formalise the informal trade sector. This will allow the sector the ability to access the necessary financing to scale up their operations – a critical move for development.”Equally important, said Heymans, was the need to create an enabling business environment on the continent. “The necessary frameworks and policies have to be in place to allow for business growth. More physical infrastructure as well as ICT infrastructure are just as important. With these components in place, Africa is poised for a huge opportunity.”According to Heymans, the delivery of more infrastructure to the continent would also see the cost of logistics coming down. “This is a cost that continues to be a challenge. At present logistics costs are as high as 40% compared to Europe where they are only between 3 and 7%. More infrastructure and cities that are connected to ports and airports will see the cost of the movement of goods decrease.”Heymans said DHL had an extensive footprint across sub-Saharan Africa – and it was an investment that continued to pay off.“We continue to be extremely positive on the outlook for Africa,” he said. “Across the continent, you can see ongoing development and investment taking place.”He said each region on the continent posed different opportunities and potential. “In Francophone Africa democracies have matured and a stable economic environment has been created. The work being done by an organisation such as Ecowas to boost and grow trade in West Africa is commendable. In East Africa, the discovery of oil and gas has moved that region onto a positive trajectory.”
