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Release ID: 5224

DHL spells out renewed focus on Africa as trade grows

Leading logistics giant enhances focus on core sectors as they become key economic drivers

Nairobi/Singapore, 6 April 2011: DHL, the world’s leading logistics company, today announced its renewed focus on Africa aimed at helping to ease the movement of goods within and out of the fast-growing continent and boost trade within regional economies.

The company is aiming to help expand trade in core sectors such as oil and energy, industrial projects, life sciences and healthcare, aid and relief and the consumer segment through simplified, reliable and cost-efficient supply chains that will drive growth in the region.

Amadou Diallo, CEO, Africa and South Asia Pacific, DHL Global Forwarding, said: “DHL has been supporting business in Africa for more than three decades now and we’re committed to keeping Africa well-connected to the rest of the world while identifying new opportunities in the intra-African market. To support the region’s vast growth potential, we are using our deep knowledge of the markets to help spur growth and enable businesses discover new opportunities in Africa.”

Upcoming Plans to Launch Pan-Africa Road Solution

Mr. Diallo revealed that DHL will soon roll out a new road freight solution in Africa connected by three main hubs in East, West and Southern Africa serving respective regions and helping link inter-regional movement of goods. Dubbed Africa Connect, the service will be offered from Mombasa and Dar es Salam (East), Spain and Morocco (West) and Johannesburg and Cape Town (South).

DHL is banking on rapid cross-sector growth chiefly driven by increasing population, rising consumer spending and technology-driven economic transformation. From 2005 to 2008, consumer spending across the continent increased at a compound annual rate of 16 percent, more than twice the GDP growth rate[1], indicating that economic growth is also resulting in wealthier communities and greater demand on the continent.

“A significant amount of growth in our business is resulting from Small and Medium Enterprises (SMEs). This group is going to be one of DHL’s main focal points as we look at how we can help these companies expand beyond current limits and leverage more opportunities in and out of Africa. We welcome the ongoing infrastructural investment by governments in the East African Community, and especially Kenya, because this will have a significant multiplier effect on regional communities,” said Mr. Diallo.

“Already, DHL serves key markets such as South Africa, Nigeria and Ghana three to five times a week by air, offering capacity in excess of 2000 tons a month. A new road freight solution that balances cost and transit times is just what the market needs next to respond to fast changing demands driven by rapid growth in key sectors.” added Mr. Diallo.

Africa’s 50-plus economies are growing at a remarkable pace across the region, with real gross domestic product having increased by an average of 4.9 percent a year between 2000 and 2008. Foreign direct investment increased to US$62 billion in 2008 from US$9 billion in 2000[2]. DHL’s is also keenly watching the inter-continental growth between Africa and Asia which reached US$100 billion in 2010[3].

DHL has largest group of logistics experts dedicated to Africa and its major trading lanes, particularly Asia. With Africa fast revealing a future worth investing in, companies need a partner with first-mover knowledge, expertise and experience. In 2010, DHL Global Forwarding saw significant volume growth in Africa in both its regular operations and charter operations connecting all regions with Africa.

[1] Africa’s path to growth: Sector by sector, McKinsey Quarterly, June 2010.

[2] Checking Africa’s vital signs, McKinsey Quarterly, June 2010.

[3] The China Analyst, The Beijing Axis, March 2011.

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