How To Start a Logistics Business In Africa

How To Start a Logistics Business In Africa

Economic growth is increasing the demand for logistics Services – Serve this market!

This is huge. The logistics market has a lot of space for successful entrepreneurs and businesses; it‘s a great opportunity to make profits. Unfortunately, it‘s often an overlooked market.

Due to the inadequate transport infrastructure, and poorly developed rail and inland waterway transport networks, almost all heavy goods are transported internally by road in Africa! As a result, trucking and haulage have become big business on the continent. Forecasts reveal that the demand for trucking and haulage will double across Africa within the next 10 years. This will be a direct consequence of increased economic and commercial activities everywhere on the continent.

With over 15 landlocked countries, a vast terrain and an inadequate and poorly developed rail transport infrastructure to do the heavy duty work and move goods around the continent, the demand for trucking and haulage services is growing fast.

It is estimated that more than 100 billion (yes, billion!) tons of goods are transported across Africa every year. Every day, trucks, tankers and trailers transport huge volumes of food items (agricultural produce and livestock), industrial raw materials, refined petroleum products, timber, construction materials, heavy and light equipment, factory goods and consumer products across the continent.

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Business Concept

Logistics is a fast-growing and very profitable business in Africa and if you approach your concept from that angle you can tap into a potential gold mine. Many private African companies are eventually forced to set up their own transport and logistics systems, as their dependence on local firms (which often lack efficiency and reliability) usually hinders business operations.

This is where you come in. Looking at long-term contracts with renowned local companies and solving their transport and logistics challenges is at the heart of your concept. Be assured that many companies will sign up for your services!

Niche Idea

Courier and messenger services would work well, especially in densely populated and high-traffic cities.

Top Countries & Policy Guidance

This is something that would work best in all fast-growing African capital cities.

Action & Tips

 The best approach here would be to interview companies and freight forwarding businesses to find out about the biggest challenges and gaps. You will soon see that some answers will appear repeatedly. Make sure this is the gap you will fill.

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