Africa is a vast continent, occupying about 20% of the world’s land area.
With the continent increasingly open for business, and actively developing intra-African trade, logistics is emerging as arguably its biggest challenge and opportunity.
Thato Moloi, president of SAPICS, examines the logistics challenges and opportunities for companies doing business in Africa.
What do you estimate as the value of the logistics sector in Africa?
In South Africa, the transport and logistics sector contributes approximately 7% of GDP (R518,4-billion contribution) according to the Wesgro (2026) Logistics Sector Report.
This provides a useful benchmark for more developed economies on the continent.
Across Africa, however, this percentage varies significantly depending on economic structure, size, and level of diversification.
In more resource-dependent or less diversified economies, logistics may represent a smaller share, while in more industrialised or trade-oriented economies, it tends to be more prominent.
What impact/effect, if any, are you seeing as a result of the African Continental Free Trade Area (AfCFTA)?
SAPICS is very supportive of the African Continental Free Trade Area (AfCFTA) agreement.
AfCFTA operates alongside existing Regional Economic Communities (RECs) such as the Southern African Development Community (SADC) and Southern African Customs Union (SACU), which remain the primary frameworks for intra-regional trade.
AfCFTA effectively acts as a continental layer connecting these RECs.
For South Africa, the direct trade impact remains limited at this stage. Exports under AfCFTA preferences between 2024 and 2025 amounted to approximately R820-million, according to the South African Department of Trade, Industry and Competition (the dtic).
This value spans sectors such as mining equipment, appliances, food products, apparel, plastics, and electrical machinery. However, it still represents a very small share of total trade.
However, the more meaningful impact is institutional. AfCFTA is prompting RECs to strengthen frameworks such as rules of origin and trade procedures, which is likely to improve trade efficiency over time, even within regions.
Where are the main logistics hubs in Africa, and what parts of the continent do they serve?
Africa’s logistics system is centred around a number of strategic hubs across each region – North, South, East and West – linked by major trade corridors.
In Southern Africa, Durban and Johannesburg anchor trade flows for South Africa and neighbouring countries such as Botswana, Zimbabwe, and Zambia.
In East Africa, Mombasa and Dar es Salaam serve as key gateways for landlocked countries including Uganda, Rwanda, and parts of the DRC.
West Africa is dominated by Lagos and Abidjan, supporting large consumer markets and Sahelian economies such as Mali and Burkina Faso.
In North Africa, Tangier Med and Port Said connect the continent to global trade routes, particularly Europe and Asia.
Overall, these hubs are corridor-based and serve multiple countries, making their performance central to regional trade efficiency and integration.
What are some of the major logistics challenges faced by companies operating in Africa
Africa’s logistics system is characterised by ports serving global trade and road corridors dominating intra-African trade, reflecting a corridor-based structure.
While some intra-African trade does occur via coastal shipping, and rail is gradually developing, both remain limited in scale and integration. Landlocked countries, in particular, depend heavily on a combination of ports for international trade and road networks for regional distribution.
As a result, trade performance is highly dependent on the efficiency of a few key ports and corridors, making them critical bottlenecks – or enablers – of growth.
This structure also contributes to relatively high logistics costs and inefficiencies, especially for intra-African trade, due to the heavy reliance on road transport and limited multimodal integration.
For initiatives such as AfCFTA, this underscores that improving trade outcomes will depend less on tariff reductions alone and more on infrastructure investment, corridor development and logistics integration.
What are the specific challenges for IT equipment and components suppliers?
There are several structural challenges affecting IT equipment and component suppliers across Africa.
Internet connectivity remains uneven, particularly outside major urban centres, while energy reliability and cost continue to constrain the deployment and operation of infrastructure such as data centres and servers.
Regulatory fragmentation further increases complexity. Varying compliance requirements and, in some cases, underdeveloped data protection frameworks make it more difficult and costly to scale across multiple markets.
Logistical inefficiencies also play a significant role. Port delays, inland transport challenges, and the high cost of moving sensitive, high-value equipment result in longer lead times and higher landed costs.
This is compounded by a heavy reliance on imports from Asia, Europe and the US, with limited local manufacturing capacity.
What kind of growth do you forecast for IT equipment and component penetration into the continent?
Despite these constraints, we expect strong growth across the continent.
Demand for IT infrastructure is being driven by structural factors, including rising Internet penetration, the expansion of e-commerce and accelerating cloud adoption.
Governments will play a critical enabling role through digital transformation strategies, infrastructure investment, and frameworks such as the AfCFTA, which supports cross-border digital trade.
Overall, while Africa remains underpenetrated from an IT infrastructure perspective, this presents a significant opportunity for innovation, investment, and long-term growth.
How do logistics providers in Africa use technology to streamline operations?
Logistics providers typically deploy a combination of customised systems and globally licensed software, particularly for Transport Management Systems (TMS) and Warehouse Management Systems (WMS).
The use of artificial intelligence (AI) and advanced analytics is beginning to emerge, particularly in areas such as demand forecasting and route optimisation.
However, the operating environment remains complex, with persistent challenges related to fragmentation, limited visibility, and coordination across borders and corridors.
As a result, technology adoption in Africa is less about full automation and more about augmenting human processes.
Effective logistics operations still rely heavily on human-to-human coordination, with technology serving as an enabler rather than a replacement.
SAPICS is a not-for-profit organisation. It was established in 1966, since when it has worked to elevate, educate and empower individuals and organisations in supply chain management in Africa.