The leading markets in sub-Saharan Africa are South Africa (pictured) (ranked number 16) and Nigeria (17) © 123RF
The leading markets in sub-Saharan Africa are South Africa (pictured) (ranked number 16) and Nigeria (17) © 123RF

Companies not willing to take risk on African logistics

28 January 2016

Demand for natural resources from Africa is expected to increase in line with consumer spending by the continent’s fast-growing middle class, yet 43% of companies have no plans to set up operations on the continent.

South Africa, Nigeria, Kenya and Ghana have been ranked the most promising markets in sub-Saharan Africa by 1,100 supply chain professionals surveyed for the 2016 Agility Emerging Markets Logistics Index.

However, poor infrastructure, lack of power generation and corruption continue to pose the most risk to African economies, the survey found.

Just 21% of respondents say their companies have operations in Sub-Saharan Africa and 12% said they are in the planning stages to enter African markets.

“The results show a serious disconnect between the perception of the market and actual opportunities,” said Geoffrey White, CEO of Agility Africa.

“These are some of the world’s fastest-growing economies. Africa’s requirement for logistics services and supply chain expertise is huge and growing every day. At the same time, many of the companies that need logistics to enter the market don’t know how to get started in Africa or aren’t willing to take the risk,” White added.

The survey ranks the world’s 45 leading emerging markets based on their size, business conditions, infrastructure and other factors that make them attractive to logistics providers, freight forwarders, shipping lines, air cargo carriers and distributors.

China, the world’s second-largest economy, remains the leading emerging market by a large margin. It is followed by the United Arab Emirates, India and Malaysia.

The leading markets in sub-Saharan Africa are South Africa (ranked number 16) and Nigeria (17).

Top 10 attractive emerging markets for logistics

  1. China
  2. United Arab Emirates
  3. India
  4. Malaysia
  5. Saudi Arabia
  6. Brazil
  7. Indonesia
  8. Mexico
  9. Russia
  10. Chile
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