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DHL Group plans to invest more than €300 million ($349 million) in warehouses and other infrastructure in Africa to capitalise on demand from sectors such as e-commerce and renewable energy.
The value of trade on the continent rose 10% despite US President Donald Trump’s trade war, according to DHL. Africa could be the second-largest region in terms of value of trade in four years, DHL Express Chief Executive Officer 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 Wednesday. “Import growth from China to sub-Saharan Africa is 26%. That is machinery, construction equipment.”
For China and other nations whose US 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 goods. The Asian nation’s shipments to Africa surged 56% last month — the fastest since February 2021.
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.
