DHL to Invest $349 Million to Expand Logistics in Africa
Most of DHL’s Africa Operations Are in South Africa, Egypt and Kenya
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DHL Group plans to invest more than 300 million euros ($349 million) in warehouses and other infrastructure in Africa to capitalize on demand from sectors such as e-commerce and renewable energy.
The value of trade on the continent rose 10% despite President Donald Trump’s trade war, according to DHL. Africa could be the second-fastest growing region in terms of trade value in four years, DHL Express CEO John Pearson said in an interview.
“When we open a new facility, warehouse, distribution center or head office, it’s because we are growing,” Pearson said on Bloomberg TV on Oct. 15. “Import growth from China to sub-Saharan Africa is 26%. That is machinery, construction equipment.”
DHL Supply Chain ranksNo. 13on theTransport Topics Top 100 list of the largest logistics companiesin North America and No. 5 on theTT Top 50 Global Freight list.
DHL Group commits more than €300 million to accelerate trade growth across Africa — DHL Group (@DHLGlobal)
For China and other nations whose U.S. trade has been disrupted, Africa offers a chance to diversify. Jumia Technologies AG, the continent’s biggest e-commerce company, said Trump’s tariffs are helping it access Chinese good. The Asian nation’s shipments to Africa surged 56% last month — the fastest since February 2021.
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Still, Africa struggles with limited infrastructure. The continent needs to invest as much as $170 billion a year to build roads and power lines.
The African Continental Free Trade Area could energize trade, according to Pearson. DHL says it has seen more deliveries coming from smaller cities in Nigeria and Ethiopia.
Most of DHL’s Africa operations, which include warehousing, packaging and supply chain management, are in South Africa, Egypt and Kenya.
