A newly released executive-based survey revealed that the continent’s burgeoning middle class is a key driver for the African economy.
The Agility Emerging Markets Logistics Index, which gives insight into perceptions in the logistics sector, classifies the top 45 emerging global markets annually, analyzing them by size, procedures and aspects that attract freight, cargo and other distributors.
The 2016 study ranked the nations of South Africa, Nigeria, Kenya and Ghana at the top of sub-Saharan Africa’s list of markets; however, the area is highly challenged by inferior infrastructure and power resources as well as corruption say more than 1,100 business leaders polled despite recent signs of growth.
“The results show a serious disconnect between the perception of the market and actual opportunities,” Geoffrey White, CEO of Agility Africa, said. “These are some of the world’s fastest-growing economies. Africa’s requirement for logistics services and supply chain expertise is huge and growing every day. At the same time, many of the companies that need logistics to enter the market don’t know how to get started in Africa or aren’t willing to take the risk.”
Although South Africa, ranked 16th overall, is most advanced in transport infrastructure on the continent, it suffers from power deficiencies, devalued currency and labor issues. Nigeria is ranked 17th, up 10 spots, but still struggles with volatile oil prices.
“The market is open for first movers who can navigate risk and nurture African talent,” White said. “The opportunity is for those seeking to build long-term, sustainable businesses that bring world-class practices and adapt to local conditions.”