Sub-Saharan Africa (SSA) economies are predicted by Moody’s Ratings to grow on average by 4.2% in 2025, creating a demand for increased cross-border logistics activity. DSV South Africa general manager, Kris Van Heerden, told Freight News that investment – in particular in mining and energy projects – was centred in Zambia, the Democratic Republic of Congo (DRC), Botswana, Zimbabwe, Tanzania and Namibia. He estimates the value of these investments across the region to be between $25 billion and $30bn.Significant commitment by governments to improving both road and rail infrastructure in SSA will positively impact development in the medium to long term, he believes.For shippers, rate volatility is a result of the f luctuating demand for logistics services due to a variety of factors, many of which cannot be predicted. Government priorities, project lifecycles, climate conditions, seasonality and political unrest are some of the variables which affect demand. “There are times we have had 150 to 200 trucks a month servicing a project, and then this could drop to 50 a month. Flexibility and agility are important features to offer the market because demands can shift quickly,” he said.At the borders, fraud and corruption remain significant challenges across the African continent. To overcome this challenge, strict and detailed customs processes have been implemented, which at times contribute to congestion and delays at borders, he said.Delays at the DRC – Zambia and South Africa – Mozambique borders are caused by complex import clearing requirements in the DRC and Mozambique, while the borders between South Africa and Botswana/Zimbabwe and Namibia are not subject to these requirements and are working well. DSV’s focus has been on simplifying cross-border trade. The digitalisation of services, introduced in mid-2024, has helped significantly. Customers are now able to see where the delivery vehicle is at any given time, and this has obvious planning and productivity benefits.“Client reports come in various formats, depending on need, and the complete digitalisation of processes from a cross-border point of view has positively impacted customer service and lead time management,” Van Heerden said.These systems will help expedite cross-border logistics as volumes grow.An example of the factors fuelling growth is the global demand for copper and lithium, which has spurred investment in mines and support services. “The demand for logistics services in SSA will grow considerably over the next five to 10 years as many of the projects currently under construction become operational, and as new projects come on stream,” Van Heerden told Freight News. ER
