Increased FDI drives DHL’s investment in Africa

03 Jul 2015
Financial Nigeria

Summary

DHL plans to invest millions of dollars in various parts of Africa to tap the growing opportunities on the continent.

DHL Express Cargo Airplane

According to Ernst and Young’s 2015 Africa Attractiveness Survey, capital investment into Africa in 2014 increased by 136 per cent, compared to 2013. On the backdrop of this increased FDI and macroeconomic growth in Africa, DHL plans to invest millions of dollars in various parts of Africa to tap the growing opportunities on the continent. While highlighting that FDI in the region is being stimulated by a number of megadeals as opposed to numerous smaller deals, Managing Director of DHL Express for sub-Saharan Africa, Charles Brewer, says this is positive for the continent’s outlook.  

He pointed out that underdeveloped infrastructure in the continent drives up logistics costs, and supply chain costs are up to nine times more expensive in Africa, in comparison to other regions of the world. For this reason, the company’s planned investment in sub-Saharan Africa involves expansion of its capabilities.

Major projects underway include upgrades to facilities and shipment handling systems in South Africa, Kenya, Uganda, DR Congo, Rwanda, Angola, Zimbabwe and Botswana. Later this year, the global logistics company will begin planned upgrades in Ghana, Nigeria, Ethiopia, Benin, Cameroon, Guinea Republic, Gabon, Tanzania, Mauritius and Cote D’Ivoire.


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