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DHL Commits €300 Million Investment to Accelerate Trade Infrastructure and Economic Growth Across Sub-Saharan Africa

In a bold demonstration of confidence in Africa’s economic future, global logistics giant DHL Group has announced a multi-year investment exceeding €300 million ($349 million) in Sub-Saharan Africa, marking one of the largest infrastructure commitments by an international logistics company in the region. The comprehensive investment program will be deployed across DHL Express, DHL Global Forwarding, and DHL Supply Chain divisions to expand infrastructure, enhance service capabilities, and unlock opportunities for businesses navigating one of the world’s fastest-growing trade corridors.

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Strategic Timing Amid Africa’s Trade Renaissance

The timing of DHL’s announcement on October 15, 2025, aligns with compelling economic data that underscores Sub-Saharan Africa’s emergence as a dynamic trade hub. According to the DHL Global Connectedness Tracker, Sub-Saharan Africa led all world regions in the first half of 2025 with a remarkable 10 percent year-on-year increase in trade value measured in current US dollars, outpacing North America’s seven percent growth and South and Central America and Caribbean’s five percent expansion.

Current economic forecasts as of September 2025 indicate that the region’s trade volume will grow by an average of 4.3 percent per year from 2025 through 2029, representing the second-fastest growth rate globally after South and Central Asia. This sustained momentum occurs despite significant global economic volatility, geopolitical uncertainties, and the lingering effects of supply chain disruptions from previous years.

“Africa is at a pivotal moment in its trade journey,” said John Pearson, CEO of DHL Express. “Despite global volatility, the continent continues to show resilience and momentum. Our investment reflects confidence in Africa’s trajectory and DHL’s commitment to enabling the trade flows that drive inclusive growth. By strengthening our network and capabilities, we aim to make it easier for African businesses, from small and medium enterprises to large corporates, to compete on the world stage.”

The AfCFTA Effect: Catalyzing Continental Integration

A primary driver behind DHL’s substantial investment is the implementation and gradual expansion of the African Continental Free Trade Area (AfCFTA), which officially commenced trading operations on January 1, 2021. As the world’s largest free trade area by number of participating countries, the AfCFTA encompasses 48 ratified member states representing a combined population of approximately 1.4 billion people and a gross domestic product approaching $3.4 trillion.

The AfCFTA aims to create a single continental market for goods and services, facilitating the free movement of business persons and investments, and ultimately establishing a continental customs union. By 2035, economists project that effective implementation of the AfCFTA framework could increase intra-African trade by up to 52 percent, adding an estimated $276 billion in trade flows and $141 billion to Africa’s GDP.

This transformative trade agreement is creating new demand centers in secondary cities across the continent, opening previously underserved markets, and establishing new trade corridors that connect African producers directly with European, Asian, and Middle Eastern markets. For logistics providers like DHL, the AfCFTA represents both an opportunity and a mandate to build the infrastructure necessary to facilitate this unprecedented level of continental integration.

“Africa’s trade opportunity is rising as regional integration gathers pace,” DHL noted in its announcement. “The African Continental Free Trade Area is creating a continental market that can deepen intra-African commerce and open new corridors with the rest of the world. Progress depends on continued improvements in infrastructure and trade facilitation, but cross-border flows have remained resilient and African enterprises are increasingly connecting to global value chains.”

DHL Express: Expanding Aviation Networks and Time-Definite Services

The investment in DHL Express operations will focus on three critical areas: upgrading gateway facilities, increasing aviation uplift capacity, and extending time-definite delivery coverage into emerging secondary cities that are becoming demand centers under the AfCFTA framework.

As the only integrated logistics provider operating a dedicated air freight network in Sub-Saharan Africa, DHL Express holds a unique competitive position. The company will leverage this advantage to connect emerging urban centers more tightly to established Africa-Europe and Africa-Asia trade lanes, building on recent operational growth in countries including Ethiopia and Nigeria.

“Our focus is to be closer to customers and make cross-border shipping simpler and more reliable,” said Hennie Heymans, CEO of DHL Express Sub-Saharan Africa. “As trade expands, businesses are asking for predictable transit times, consistent delivery performance and support that understands local conditions. By raising the bar on service and proximity, we will help more African companies trade efficiently and compete on a bigger stage.”

The expansion of air cargo capacity comes at a crucial time as African businesses increasingly participate in global e-commerce, which demands reliable, time-sensitive delivery capabilities. The investment will include modernizing cargo handling facilities, implementing advanced tracking technologies, and expanding DHL’s physical presence in cities experiencing rapid economic growth.

DHL Global Forwarding: Building Specialized Industry Solutions

For DHL Global Forwarding, the investment will concentrate on strengthening key industry-specific solutions that address the most dynamic sectors driving Africa’s trade expansion. Three areas receive particular emphasis: energy and industrial projects, cold-chain logistics for agriculture and horticulture, and temperature-controlled transport for life sciences and healthcare.

The expansion of cold-chain and perishables logistics capabilities responds directly to Africa’s position as a major exporter of fresh produce, flowers, and other temperature-sensitive agricultural products to European markets. Kenya’s cut flower industry, Ethiopia’s rapidly growing horticulture sector, and South Africa’s diverse agricultural exports all depend on sophisticated cold-chain infrastructure to maintain product quality and meet stringent international standards.

“These enhancements build on DHL’s established freight forwarding network and customs expertise across major African trade lanes connecting the continent with Europe, Asia and the Middle East,” the company stated. The forwarding division’s investments will support African exporters’ ability to compete in premium markets where quality, consistency, and regulatory compliance are paramount.

Amadou Diallo, CEO of DHL Global Forwarding Middle East & Africa, emphasized the importance of reliability in today’s trading environment: “Customers are navigating shifting trade patterns and tighter regulatory requirements, so reliability and visibility matter more than ever. We are strengthening forwarding solutions with deeper local expertise and enhanced digital tools, giving clients clearer control of their shipments from origin to destination. The goal is straightforward: keep goods moving predictably and help customers capture growth where demand is emerging.”

The energy and industrial projects focus addresses Africa’s massive infrastructure development requirements and expanding extractive industries. As African nations pursue economic diversification and value-addition strategies, the ability to move heavy equipment, machinery, and specialized components becomes increasingly critical.

DHL Supply Chain: Meeting Growing Demand for Contract Logistics

DHL Supply Chain will use its portion of the investment to add warehousing capacity and develop transport-led solutions with particular emphasis on the transportation sector and the life sciences and healthcare industries. This includes additional temperature-sensitive storage and handling capability to support critical healthcare flows and evolving fulfillment requirements as supply chains across the continent mature.

South Africa, the continent’s most developed logistics market, represents a primary focus for supply chain expansion. The country serves as a gateway to the broader Southern African region and hosts increasingly sophisticated manufacturing and distribution operations.

“DHL Supply Chain is expanding in South Africa as the economy gains momentum and supply chains become more sophisticated,” said Orkun Saruhanoglu, CEO of DHL Supply Chain Middle East & Africa. “We are seeing growing demand for specialized, outsourced logistics, particularly in life sciences and healthcare and across the transporter sector. By adding capacity, strengthening transport-led solutions and applying our contract logistics expertise, we will help customers improve service quality, manage risk and scale with confidence.”

The life sciences and healthcare focus addresses both immediate public health needs and long-term pharmaceutical industry development across Africa. The COVID-19 pandemic exposed significant gaps in healthcare supply chain infrastructure across the continent, accelerating demand for professional cold-chain logistics, secure storage facilities, and reliable distribution networks capable of handling vaccines, biologics, and other temperature-sensitive medical products.

Supporting SME Growth Through the GoTrade Initiative

Beyond physical infrastructure investments, DHL is committing resources to programs that broaden participation in international trade and support sustainable economic development. Central to this effort is the company’s GoTrade initiative, which provides small and medium-sized enterprises with training, customs expertise, and practical guidance to access international markets.

Small and medium enterprises constitute the backbone of African economies, accounting for the majority of employment and contributing significantly to GDP across the continent. However, many SMEs face substantial barriers to international trade, including limited understanding of customs procedures, difficulty accessing trade finance, inadequate logistics infrastructure, and limited familiarity with international quality standards and regulatory requirements.

The GoTrade program leverages DHL’s international network, knowledge, and trade expertise to help entrepreneurs overcome these barriers. Through capacity building and trade advocacy, the initiative empowers small businesses to participate sustainably in global value chains and drive economic growth in the countries where they operate.

In October 2025, DHL launched the inaugural DHL Exporters of the Year Awards across Sub-Saharan Africa to recognize outstanding SME exporters. The awards feature three categories: ESG Excellence Exporter Award, Women Exporter of the Year Award, and Global Expansion Exporter Award. This initiative aims to celebrate SME achievements, raise awareness of successful export businesses, and advocate for policies that support SME participation in international trade.

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Digital Infrastructure and Sustainability Commitments

DHL’s investment encompasses significant digital transformation initiatives designed to reduce friction in cross-border trade and improve operational efficiency. The company is advancing digitalization through AI-enabled monitoring systems, route optimization algorithms, and digital customs tools that streamline documentation and compliance processes.

These digital solutions address longstanding challenges in African trade, where customs clearance delays, documentation errors, and limited supply chain visibility have historically impeded efficient goods movement. By implementing advanced tracking systems and providing customers with real-time shipment visibility, DHL aims to bring unprecedented transparency to African logistics operations.

The investment also includes pilot programs for renewable energy and alternative fuel projects across DHL facilities in Sub-Saharan Africa. These initiatives align with global corporate sustainability commitments while addressing Africa’s energy challenges. Many African countries face significant electricity reliability issues, making renewable energy solutions particularly attractive for operations requiring consistent power supply, such as cold-chain facilities and distribution centers.

“We are piloting renewable energy and alternative fuel projects across our facilities in Sub-Saharan Africa and advancing digitalization through AI-enabled monitoring, route optimization, and digital customs tools to reduce friction in cross-border trade,” the company stated.

Trade Data Supporting Investment Rationale

The investment decision rests on solid empirical foundations. Recent trade data reveals several promising trends that justify DHL’s confidence in African market growth. Import flows from China to Sub-Saharan Africa, for example, grew by an impressive 26 percent recently, primarily consisting of machinery and construction equipment—categories that signal infrastructure development and industrial expansion.

This China-Africa trade dynamic has intensified as Chinese businesses seek to diversify away from U.S. markets amid ongoing trade tensions. Africa offers Chinese manufacturers and exporters an opportunity to access new consumer markets while supporting the continent’s infrastructure development needs. For logistics providers, this bilateral trade growth creates demand for sophisticated freight forwarding, customs brokerage, and supply chain management services.

E-commerce represents another high-growth sector driving logistics demand across Africa. Companies like Jumia Technologies, the continent’s largest e-commerce platform, report that global trade policy shifts are facilitating access to imported goods from Asian suppliers. The e-commerce boom creates demand for last-mile delivery services, urban warehousing facilities, and integrated logistics solutions that connect international suppliers with African consumers.

The agricultural sector continues to generate substantial export volumes, with African countries supplying European markets with fresh flowers, vegetables, fruits, and other high-value produce. Kenya alone exports over 150,000 tons of cut flowers annually, primarily to European markets, requiring sophisticated cold-chain logistics and reliable air cargo services.

Regional Growth Patterns and Investment Focus Areas

DHL’s investment strategy recognizes significant variations in economic development, infrastructure quality, and market maturity across Sub-Saharan Africa. The company has indicated particular focus on several countries and regions demonstrating strong growth trajectories.

Ethiopia has emerged as one of Africa’s fastest-growing economies, with the government actively pursuing industrialization and export-led development strategies. The country’s horticulture sector has expanded rapidly, making it a major supplier of cut flowers and fresh produce to European markets. Ethiopia’s geographic position also positions it as a potential logistics hub serving East African markets.

Nigeria, Africa’s most populous nation and largest economy by GDP, represents a critical market for logistics services. Despite infrastructure challenges, Nigeria’s large consumer market, expanding manufacturing sector, and oil and gas industry create diverse logistics demands. The country’s recent accession to active trading under the AfCFTA Guided Trade Initiative in July 2024 marked a significant milestone in its integration into continental trade flows.

South Africa remains the continent’s most developed logistics market, offering sophisticated infrastructure, established regulatory frameworks, and a diversified economy. The country serves as a regional hub for Southern Africa and hosts the continent’s busiest ports, including Durban, which functions as a gateway for goods moving throughout the region. DHL’s investment in South African warehousing and supply chain capabilities reflects the country’s role as a distribution center for the broader region.

The focus on secondary cities represents a strategic recognition that economic growth and commercial activity are increasingly dispersed beyond traditional primary urban centers. As AfCFTA implementation progresses, cities that were previously peripheral to international trade are developing as production centers, distribution hubs, and consumer markets. Extending reliable logistics services to these emerging cities enables businesses located outside capital cities to participate in international trade.

Competitive Landscape and Market Positioning

DHL’s €300 million commitment represents a significant competitive statement in the African logistics market, where the company faces competition from both international logistics providers and regional players. The scale of the investment and its multi-divisional scope demonstrate DHL’s determination to maintain and extend its market-leading position across key service categories.

As the only major integrator operating a dedicated air cargo network in Sub-Saharan Africa, DHL Express enjoys a structural advantage in time-sensitive express delivery services. This unique capability becomes increasingly valuable as African businesses integrate into global supply chains that demand rapid, reliable delivery of components, samples, and finished goods.

The investment also positions DHL to capitalize on emerging trends including the expansion of e-commerce, growth in pharmaceutical and healthcare logistics, increasing demand for cold-chain services, and the gradual professionalization of supply chain management across African businesses.

Economic Development Implications

Beyond DHL’s commercial interests, the investment carries significant implications for African economic development. Improved logistics infrastructure addresses a fundamental constraint on African competitiveness, enabling businesses to access markets more efficiently, reduce costs, and meet international quality standards.

For African exporters, reliable cold-chain logistics, professional warehousing, and predictable delivery times can mean the difference between accessing premium international markets or being relegated to lower-value commodity sales. A Kenyan flower grower with access to temperature-controlled transportation and reliable air cargo can sell into high-value European markets; without such infrastructure, those same flowers might not reach market in acceptable condition.

The employment effects extend throughout the logistics value chain, from warehouse workers and truck drivers to customs brokers, supply chain planners, and facility managers. As DHL expands operations and upgrades facilities, it will directly employ additional staff while creating opportunities for local service providers, equipment suppliers, and business partners.

The transfer of logistics expertise and operational best practices represents another important development impact. As DHL implements sophisticated warehouse management systems, advanced tracking technologies, and optimized routing algorithms, African logistics professionals gain exposure to international standards and capabilities. This knowledge transfer contributes to broader improvements in supply chain management across the continent.

Infrastructure Challenges and Opportunities

DHL’s investment must navigate significant infrastructure challenges that characterize logistics operations across much of Sub-Saharan Africa. Poor road networks, unreliable electricity supply, congested ports, and inefficient customs procedures all increase logistics costs and complexity compared to more developed markets.

These challenges, however, also create opportunities for logistics providers that can deliver reliable service despite infrastructure constraints. Companies that develop robust systems, establish backup power generation, implement advanced route planning, and maintain professional relationships with customs authorities can differentiate themselves and command premium pricing.

The infrastructure gap is gradually closing as African governments and international development institutions invest in transportation networks, port modernization, and trade facilitation measures. The African Development Bank has prioritized regional corridor development and cross-border infrastructure projects that support continental integration under AfCFTA. These investments complement private sector logistics expansions by improving the underlying transportation networks that enable goods movement.

Looking Forward: Africa’s Trade Trajectory

DHL’s €300 million investment statement reflects broader optimism about Africa’s economic trajectory and its integration into global trade networks. While challenges remain—including infrastructure gaps, regulatory complexity, and geopolitical uncertainties—the fundamentals supporting African trade growth appear solid.

Demographic trends favor continued expansion, with Africa’s population expected to reach 2.5 billion by 2050, creating a massive consumer market and labor force. Urbanization is proceeding rapidly, concentrating purchasing power and creating economies of scale that support formal retail and distribution networks. Digital adoption is accelerating, enabling e-commerce and improving transparency in logistics operations.

The AfCFTA represents an unprecedented opportunity to create integrated value chains across the continent, moving beyond the colonial-era trade pattern where African countries primarily export raw materials to external markets while importing finished goods. As tariff barriers fall and customs procedures harmonize, African manufacturers can develop regional supply chains, access larger markets, and achieve economies of scale previously impossible within fragmented national markets.

For DHL, success in the African market requires sustained commitment, operational excellence, and willingness to invest ahead of demand. The €300 million commitment demonstrates such conviction, positioning the company to benefit as Africa’s trade potential increasingly translates into commercial reality.

“With unrivalled coverage across all African markets, DHL Group remains uniquely positioned to connect the continent to the world and enable the next chapter of its growth,” the company stated, articulating its vision for participating in and facilitating Africa’s economic transformation.

As the investment program unfolds over the coming years, its success will be measured not only in DHL’s market share and financial returns but also in its contribution to African economic development, job creation, and integration into global value chains. The €300 million commitment represents a substantial vote of confidence in Africa’s future—a future in which reliable logistics infrastructure enables businesses across the continent to compete successfully in international markets and contribute to inclusive economic growth.

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By: Montel Kamau

Serrari Financial Analyst

16th October, 2025

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