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Recently there was worrying news from Africa. But there are also good ones: companies want to invest heavily.
It’s not that the logistics group Kuehne + Nagel and Africa don’t know each other well – on the contrary: “We’ve been in Africa for almost 70 years,” says Lee I’Ons, the manager responsible for the continent. However, the Africa business is currently only a very small part of the overall business, says the South African – without naming any figures.
But that is about to change: the network will be expanded significantly, especially in South and West Africa, to 18 countries, including heavyweights such as South Africa, Kenya and Nigeria. I’Ons does not say how much the group is investing. Just that: “We want to be ready. Because there is a lot going on on the continent at the moment.”
Legend:
Putsch governments, terrorist attacks: In recent months, worrying news has often come from Africa. Pictured: Mural painting in Sudan.
key stone
The economy is recovering, and even if the current accumulation of coup attempts gives a different impression: Many countries are politically more stable than before. Both are likely to attract many companies in the next few years, I’Ons expects – and bring many new customers to the logistics group.
Good prognosis
l’Ons is not alone in its optimism. The economist and Africa expert Robert Kappel also expects that the African continent will play a much greater role in the future. “Currently, sub-Saharan Africa accounts for only three percent of world trade. But all forecasts say that trade will increase extremely – with growth rates of five to eight percent. »
One reason for this is the new African free trade zone. It has been in force for a good year and is intended to help reduce the sometimes exorbitantly high tariffs and other trade barriers between the 54 African countries.
A container shipped from Rotterdam to West Africa is ten times more expensive than a container shipped to China.
Also because of high trade barriers, intra-African trade accounts for only 16 percent of Africa’s trade with the world. If these hurdles were removed, companies would suddenly have access to a much larger market, says manager I’Ons. But high tariffs are not the only problem. Extremely high transport costs are also a burden on trade.
“A container shipped from Rotterdam to West Africa is ten times more expensive than a container shipped to China,” says Kappel. The price is high because – compared to the rest of the world – relatively little is traded. In addition, unloading in African ports such as Durban is particularly expensive – because the infrastructure of the ports is poor, ships are often only unloaded after days or weeks.
To be honest, the climate will be saved in Africa too.
The potential is huge, emphasizes Martin Kalhöfer, Africa expert at the German foreign trade promotion agency GTAI. “We all have to see the perspective.” If only because of the rapidly growing population: by 2050, the population of Africa is likely to double to two and a half billion people.
That creates new demand, according to Kalhöfer. “There are sectors that we have a particular focus on: food processing, agricultural engineering, but above all the issue of energy. If you are honest, the climate will also be saved in Africa.”
Patience is required
Everyone agrees that trade with and in Africa offers great opportunities. However, it also means that it takes patience to bring in the harvest. The political framework conditions remain difficult in many countries and the hoped-for boost from the free trade agreement is a long time coming – also because of Corona.
On the other hand, the pandemic has also advanced Africa, says I’Ons. New transport routes were opened up within a very short time. For example, to quickly transport vaccines to their destination. You can build on that after the pandemic.