SACO Shipping is rapidly expanding its presence in West Africa, having inaugurated offices in Senegal, Guinea, Côte d'Ivoire, and Ghana. Ian Treder, SACO Shipping's director for West Africa, emphasises that they enhance the company's capacity to deliver hands-on service and signify its commitment to regional growth. The company plans to establish additional regional offices later this year and in 2025, solidifying its position as a key player in West African logistics."Expanding one's footprint in West Africa is crucial, given the burgeoning opportunities in the region. With growing opportunities emerging, companies like SACO Shipping must establish a stronger presence to capitalise on the region's potential," he told Freight News.He said the region had the world's fastest-growing population and significant demographic shifts, fostering a sizable consumer market. Furthermore, its evolving economies present diverse opportunities across various sectors.Already, volumes have seen an uptick, and there is a positive outlook for continued growth. "Projections suggest moderate expansion, with the supply/demand equilibrium shaped by geopolitical factors and shipping routes. Discussions with a leading global carrier, renowned for its diverse service portfolio, affirm that volumes have already surged in 2024 and are poised for further escalation throughout the year," said Treder. " The outlook for cargo volumes in West Africa remains buoyant, driven by factors like trade dynamics, the growth of e-commerce, and expansion in air cargo capacity. Forecasts indicate a steady 1-2% increase in demand, mirroring previous projections. Additionally, there's a 2-4% uptick in air cargo supply, ref lecting the region's commitment to meeting burgeoning logistics demands."He said further boosting growth are the technological advancements, particularly in the digital sphere, catalysing new business models, notably in mobile services, e-commerce, and fintech."With the world's highest urbanisation rate, there's a surge in demand for housing, infrastructure, and urban services, creating avenues for growth in real estate, construction, and related industries. Cement production plays a pivotal role in meeting the escalating needs of the building se c t or."According to Treder, agriculture remains fundamental to West African economies, offering major opportunities to logistics service providers. Initiatives to bolster the textile manufacturing sector through onshoring strategies, utilising raw cotton locally, are gaining traction, requiring substantial investment and support.For the future, he believes there are also major developments in renewable energy and mining driving opportunities.Treder said the region was, however, challenging. "West Africa continues to grapple with insufficient infrastructure, including poorly maintained roads, ports, and rail networks. These issues contribute to delays, inefficiencies and increased costs in intra-Africa trade. There are, however, ongoing port developments across the region aiming to reduce the pressure on the weak existing infrastructure by relocating some ports to greenfield sites or creating new quays."He said efforts to improve customs operations to clear cargo more quickly and relieve port congestion while ensuring the proper import duties were applied for tax revenues also required attention. "The introduction of effective cargo tracking could help alleviate this. Carriers are also slow to adopt systems that allow easy cargo releases, which increases the pressure on ports," he said.Looking ahead, Treder said he remained extremely positive, with the region expecting economic growth of 3.8% this year.
