Ten African countries are the next places-to-be, offering enormous potential for strategic investors in the transportation and logistics industry, according to PwC’s Africa Gearing Up report. These include Algeria, Angola, DRC, Egypt, Ghana, Kenya, Mozambique, Nigeria, South Africa and Tanzania.
Aiming to give interested investors insight into the key economic regions and countries in Africa, the report analyses the market potential for transport and logistics operators on the continent.
“Algeria is a big transport and logistics player on the African continent, not only because of its substantial land area, but also because of its sizeable GDP. This leads to high transport volumes and an improving infrastructure,” says the report.
Investment in infrastructure came to a virtual standstill in Algeria between 1991 and 2001, due to a civil war. This led to a significant backlog in infrastructure maintenance and improvement. In addressing these problems, the government has made transport a priority with major upgrades and expansions in progress as part of its extensive public investment programme.
Meanwhile, Angola will stay on a fast growth path and thus continue improvement of its transport infrastructure. Key drivers will be further rising oil production, announced reform programmes and political stability, according to PwC.
Despite the weakness of the country's infrastructure, Angola is one of very few African countries that do not face a significant infrastructure funding gap. Thanks to its large oil reserves, it has the financial resources to address structural issues and to rebuild the country's shattered infrastructure to better connect its cities.
Elsewhere, South Africa, said to be the most developed country in sub-Saharan Africa, has the most advanced transport infrastructure, the report finds. As a member of the BRICS countries, it is recognised as a key emerging market along with other members of the bloc, Brazil, Russia, India and China.
“The need to move goods to inland centres of commerce has created a transport-intensive domestic economy in South Africa. The country’s air and rail networks are the largest on the continent, and the major roads are in good condition. South African port efficiency has improved considerably as a result of investment in new assets such as ship to shore cranes and other supporting handling equipment,” says the report.
