Logistics in Africa: The Fruit that’s ready to reap
The world’s economy is experiencing a slowdown and is driven by instability in these uncertain times mainly due to unforeseen and unavoidable circumstances. It calls to look beyond obvious and offer value-added and viable solutions in sectors that have been considered traditional and have offered low scope for innovation. One such sector that holds much potential in Africa is the transports and logistics sector. The sector, so far being dominated by traditional approach, calls for innovative solutions.
Global proliferation: It was the 1820s and businesses were thriving to expand their hold, owing to globalization and enhanced logistics. Fast-forward to 2020 and all the markets in the developed countries are almost saturated. However, the unequal distribution of resources among different economies is still prevalent in the world. Talking about Africa, it was an unimaginable concept of development at this pace in the beginning of the 20th century, but at present, Africa is a burgeoning economy. The second largest continent in the world, which boasts to be the house of 54 different countries, is finally coming up to become the next epicentre for International Trade.
Role of Logistics in Africa: Africa is scattered into 5 different economic conditions, each with diverse opportunities for growth and favourable conditions for building a good infrastructure, necessary for emerging in a competitive logistics sector. As it is a mushrooming economy and its eminence has risen in the investment sector, the growth and development depend on the infrastructure and the competence of the logistics network. There is a hoard of raw materials in the continent and even the investment sector requires good logistics management, which gives rise to the importance of the logistics industry in the African market. An efficient expertise management in the African economy can bring a push to the development pace of the economy.
Africa: a rising economy: Africa is the fastest growing region in terms of GDP in the world, and, if the growth is accelerated, it has a potential to triple its manufacturing output growth rates and double its output by 2025. Six of the world’s ten fastest growing economies over the previous decade belong to Africa. Africa is not the region of investment for short term gains, but for businesses which have a vision for long term profits. This is easily reflected by the fact that the continent received foreign direct investment (FDI) worth $128 billion in 2014. With the implementation of the African Continental Free Trade Agreement and setup of African Continental Free Trade Area (AfCFTA), Africa has the largest area of free trade in the world. The logistics companies are now looking beyond cities, and trying to reach rural areas. With a population of more than 1.3Bn, the African market is bound to have the growth equivalent to the Asian market soon.
A promising opportunity: With efforts to streamline the logistics terrain, Africa is set to be a promising opportunity for investment. If you are looking to capitalize the potential of an emerging economy, and wish to expand in the African Market, ARK Global Logistics is committed to provide you a seamless surface transportation experience across Africa. At ARK Global Logistics, we are redefining, simplifying and digitizing trucking and logistics across Africa. Click here to know more.