DHL expectations for Africa: 2015 outlook

In line with Sub-Saharan Africas (SSA) projected economic

growth of 4.9%1 this year, which is double the projection for
advanced economies (2.4%1), DHL SSA expects 2015 to be a year
of growth for the logistics industry on the African continent,
largely driven by increased consumer demand and the rapidly
developing e-commerce industry.
This is according to Charles Brewer, Managing Director of DHL
Express SSA, who was commenting against the backdrop of
Deutsche Post DHL Groups full year results released in March.
DPDHL Group ended 2014 with revenues of EUR 56.6 billion, up
3.1% compared to 2013. He says that the companys increased
focus on e-commerce and emerging markets, including Africa,
has led the group to achieve growth in both volume and
revenue in 2014.
A new report by yStats.com 2 revealed that despite Africa
lagging behind other regions when it comes to the development
of online infrastructure, business-to-consumer (B2C) sales will
grow to double-digit numbers in EUR billions in the next three
years.
Brewer says that as such, a key focus for DHL Express Sub
Saharan Africa in 2015 is to further strengthen connectivity,
both within the continent and globally. He says that this will be
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crucial to meeting the growing e-commerce market on the

continent, and assist in driving further growth.
Deutsche Post DHL Group
Charles-de-Gaulle-Str. 20
53113 Bonn
Germany

Phone
Fax.

+49 228 182-9944

+49 228 182-9880

www.dpdhl.com

Email
Twitter

pressestelle@dpdhl.com
www.twitter.com/DeutschePostDHL

There is a growing B2C e-commerce market in Africa due to

the development and accessibility of technology on the
continent, so it is no longer just the larger corporations that
need to make use of logistics and delivery services, but
individual consumers and small businesses too. Our goal is to
develop the necessary infrastructure in Africa to make the
global market more accessible. Our aggressive expansion
strategy has seen us grow our retail presence from 300 outlets
to over 3,800 outlets in just over 3 years.
Brewer believes that intra-African trade will continue to grow
in 2015, and continue to improve on the growth witnessed by
the group in 2014. There are a number of successful trade
blocs in place which focus on better connecting the region. A
good example of this is the recent and rapid progress made by
the East Africa Community (EAC) (Kenya, Uganda, Tanzania,
Rwanda and Burundi) who are working incredibly hard on
developing a number of critical and trade boosting areas, for
example, they are working to improve the roads, ports, rail and
critically, the customs border environment and have recently
introduced a common visa for the region. The Economic
Community of West African States (ECOWAS) and The African
Economic Community (AEC) are other prime examples, adds
Brewer.
Brewer

points

to

International

Data

Corporation

(IDC)

statistics, which predict that closer intra-Africa trade will be

witnessed in 2015, promoted by ICT initiatives such as payment

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systems, financial inclusion initiatives, and cross-border

payments.
While markets within Africa offer numerous opportunities,
there are also challenges. Underdeveloped infrastructure, lack
of air connectivity and customs inconsistencies remain very
real issues that can hamper growth on the continent. With that
said, the situation is improving, and more countries are
recognising that they need to find ways to make their markets
accessible and easier to do business with. We will continue our
aggressive

investment

and

expansion

strategy

on

the

continent, with a number of planned upgrades scheduled for

2015, including state of the art smartphone scanners to further
enhance our tracking capabilities.
We firmly believe that Africa is the place to be and that it
offers unlimited growth opportunities. We aim to drive this
growth with strategic investments and programs that will
make the global market more accessible. We are committed to
connecting Africa to the world, and the world to Africa,
concludes Brewer.
Follow us: www.twitter.com/DHLAfrica

DHL The logistics company for the world

DHL is the leading global brand in the logistics industry. DHLs
family of divisions offer an unrivalled portfolio of logistics
services ranging from national and international parcel
delivery, international express, road, air and ocean transport

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to industrial supply chain management. With more than

325,000 employees in over 220 countries and territories
worldwide, they connect people and businesses securely and
reliably, enabling global trade flows. With specialized solutions
for growth markets and industries including e-Commerce,
technology, life science and healthcare, energy, automotive and
retail, a proven commitment to corporate responsibility and an
unrivalled presence in developing markets, DHL is decisively
positioned as The logistics company for the world.
DHL is part of Deutsche Post DHL Group. The Group generated
revenues of more than 56 billion euros in 2014.

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