African Logistics Sector Key Statistics
- US Dollar Value (2025 Estimate): Approximately USD 150 billion annually, with South Africa (USD 14.70 billion) and MEA (USD 173.27 billion, including Africa) as key benchmarks.
- Volume of Goods Moved (Annual Estimate): Likely to exceed 100 million tonnes in 2025, with maritime volumes around 58 million tonnes (2023) and road freight as the dominant mode of transport.
- Growth Over Past Three Years (2022–2024): Estimated at 15-30% cumulative (5-10% annually), driven by e-commerce, AfCFTA, and infrastructure improvements.
Africa’s logistics sector is at a pivotal moment, with massive infrastructure challenges requiring extensive transformation and technological innovation.
Infrastructure investments and regional integration initiatives like the African Continental Free Trade Area (AfCFTA) need to kick into gear as the continent’s economies diversify and its population grows.
logistics is becoming a critical enabler of economic development, supporting industries from e-commerce to manufacturing. However, persistent challenges such as infrastructure deficits, regulatory barriers, and high operational costs continue to hinder progress.
Developments Driving Africa’s Logistics Sector
The logistics landscape in Africa is evolving rapidly, fueled by digitalization and infrastructure modernization. The adoption of technologies like artificial intelligence (AI), the Internet of Things (IoT), and blockchain is reshaping supply chains.
Companies are leveraging AI for route optimization, demand forecasting, and inventory management, while IoT enables real-time tracking and enhanced visibility.
Blockchain is gaining traction for its ability to ensure transparency and security, with each product assigned a unique digital identity to track its origin and journey.
According to a 2025 report, nearly 80% of logistics firms plan to integrate robotics and automation, with automated warehouses and autonomous guided vehicles (AGVs) reducing human errors and streamlining operations.
Infrastructure development is another cornerstone of progress. Governments and private entities are planning to invest heavily in ports, railways, and roads to improve connectivity.
For instance, Kenya’s Mombasa-Nairobi Standard Gauge Railway has significantly reduced transit times and logistics costs, facilitating smoother trade flows. In Nigeria, the Lekki Deep Seaport, which began operations in 2023, is poised to become a major cargo hub, enhancing the country’s maritime trade capacity.
South Africa’s Transnet National Ports Authority plans to invest approximately USD 941.44 million by 2030 in port infrastructure, targeting major ports like Cape Town and Saldanha. These projects are critical for accommodating larger vessels and increasing cargo-handling capacity, positioning Africa as a growing player in global trade.
AfCFTA Needs to be Accelerated
The AfCFTA, while fully adopted by 54 African States in 2021, could be a significant game-changer for intra-African trade. By reducing tariffs on 90% of goods and promoting the free movement of goods and services, AfCFTA is expected to increase intra-African freight demand by 28% by 2030, requiring millions of trucks, rail wagons, and vessels.
However in practice most Afrucan States still have tariff fees or import duties onproducts from other African States with some even banning product imports from their competirors on the continent. The Agreement requires a radical policy shift by administrations.
This initiative should be fostering regional integration, simplifying customs processes, and creating larger consumer markets, which the logistics sector would greatly benefit from. Long border delays and customs inefficiencies, are however currently a major setback and costly challenge for the industry.
Challenges Hindering Progress
Despite some advancements, Africa’s logistics sector faces significant hurdles. Poor infrastructure remains a primary challenge, particularly in Sub-Saharan Africa, where inadequate roads, railways, and ports limit the efficient movement of goods.
The World Bank’s Logistics Performance Index ranks many African countries low due to cross-border delays, inconsistent tax regimes, and limited cold chain capabilities. High logistics costs, often exacerbated by an infrastructure gap estimated at USD 130-170 billion, continue to strain businesses.
Political instability and regulatory barriers further complicate operations. In some regions, supply chain disruptions arise from unpredictable political climates, making cross-border trade challenging.
Last-mile delivery, especially in rural areas, remains a significant pain point. Low purchasing power and unreliable address systems in many African markets drive logistics firms to focus on business-to-business (B2B) services rather than consumer deliveries.
However, innovative startups like Twiga Foods and InspiraFarms are addressing these challenges by connecting rural farmers to urban markets through digital platforms and off-grid cold storage solutions.
Growth Potential and Opportunities
Africa’s logistics sector holds immense growth potential, driven by its youthful population, rising consumer spending, and e-commerce boom. With a population of 1.4 billion and a median age of 19.7, Africa’s demographic dynamism is a key asset, fueling demand for goods and services.
The African e-commerce market is projected to surpass 500 million active users by 2025, growing at a compound annual rate of 17.9% from 2017. This surge, coupled with increased internet and mobile connectivity, is creating opportunities for logistics firms to meet the needs of a growing consumer class.
The AfCFTA once prioritised by African administrations, is expected to accelerate B2B spending, projected to reach USD 3.6 trillion, creating a fertile ground for logistics startups and established players.
The rise of freight tech and logistics startups, such as Nigeria’s Kobo360 and Egypt’s Trella, is driving efficiency by matching trucking capacity with demand through digital platforms. These startups are attracting significant investment, with Kobo360 securing USD 20 million in a fundraising round led by Goldman Sachs.
Sustainability is also shaping the sector’s future. Companies like Maersk are investing in wind-assisted propulsion and cleaner vessel technologies.
Recent Company and Industry Advances
Major logistics companies are making strategic moves to capitalize on Africa’s potential. A.P. Moller-Maersk, a global leader, is enhancing its integrated logistics offerings with digital supply chain solutions, focusing on end-to-end visibility.
Africa Global Logistics (AGL), formerly Bolloré Africa Logistics, is accelerating investments to facilitate intra-African trade and promote eco-responsible transport through its Green Terminal program. In Nigeria, companies like Red Star Express and JOF Nigeria are implementing advanced tracking systems and automated warehousing to boost efficiency.
South Africa’s logistics market, valued at USD 14.7 billion in 2025, is seeing robust growth, particularly in the manufacturing sector. Strategic partnerships, such as Amazon’s entry into South Africa’s e-commerce market in 2024, are intensifying competition and driving improvements in logistics infrastructure.
Logistics – a Pivotal Player in Africa’s Development
At the heartof Africa’s commerce sector is theAfrica’s logistics sector, that is potentially on the cusp of a transformative era, that could be propelled by technological advancements, infrastructure investments, and regional trade agreements.
While challenges like poor infrastructure and regulatory barriers persist, the sector’s growth potential is undeniable, fueled by a young population, e-commerce growth, and sustainability initiatives.
Companies leveraging digital platforms, automation, and strategic partnerships are well-positioned to thrive in this dynamic landscape. As Africa continues to integrate into global supply chains, its logistics sector will play a pivotal role in unlocking the continent’s economic potential, making it a focal point for investors and industry leaders in 2025 and beyond.
