Barloworld Logistics, a provider of logistics and supply chain services, has announced plans to expand its operations from the United Arab Emirates to Africa and the Persian Gulf.
According to analyst Ernst and Young, exports from the Middle East and Africa are predicted to grow by more than 12 percent over the next 10 years, while a supplychainforesight report said Africa has many regions with fast growing GDP and anincreasing demand for cargo services across most industry sectors.
"Africa's positioning as a strategic target market makes it imperative to have a strong and well-established logistics sector to supplement the desired growth,” said Frank Courtney, Barloworld's chief executive for the Europe, Middle East and Africa region. “With the presence of state-of-the-art logistics facilities, free zones, dedicated sea ports and airports; we believe that the (Persian Gulf) is well-positioned as a distribution hub to serve Africa.”
In the 2012 African supplychainforesight survey, 58 percent of respondents are planning to expand their sales into Africa and 44 percent want to sell through partners. The study also found that 75 percent find it difficult to secure reliable service providers and partners in Africa.
In addition, the report said South Africa, Angola, Nigeria, Kenya, and Egypt are lead players for trade and GDP growth. It noted future growth will likely be driven by Ethiopia, Tanzania, Mozambique, and Namibia, while long-term investment will pay off in emerging markets such as Sudan, Congo, Angola, and Nigeria.