Changes in Italy: an update of the loading restrictions in Europe

Navigating the future of logistics in sub-Saharan Africa: opportunities and challenges

The potential for logistics in Sub-Saharan Africa is immense. With a population exceeding one billion and a rapidly growing middle class, consumer demand for goods and services is on the rise. According to the African Development Bank, the continent’s GDP is expected to grow by 3.4% in 2024, driven by increased consumer spending and improved business climates in key economies.

Initiatives like the African Continental Free Trade Area (AfCFTA) aim to boost intra-African trade by reducing tariffs and streamlining customs procedures. This agreement, covering 54 African countries, is creating a single market of 1.2 billion people with a combined GDP of over $3 trillion, offering unprecedented opportunities for growth. Investors are increasingly exploring opportunities in Africa across sectors such as energy, mining, construction, and logistics.

As the global transition to renewable energy accelerates, Africa further has the potential to become a key hub for both renewable energy and critical minerals. The continent is rich in critical minerals vital for manufacturing renewable energy sources and possesses untapped natural gas fields. Effective integration of strategic logistics solutions is essential to fully unlock this economic potential.

The opportunities and challenges that lie ahead for logistics in Africa present a unique landscape for growth and innovation. However, to harness this potential, we must address the inherent challenges with foresight and strategic planning.

Opportunities abound

The logistics sector in Africa is poised for significant advances due to several key factors.
Firstly, the continent's infrastructure development is gaining momentum, with numerous investments targeting roads, railways, and ports to enhance connectivity. Improved transport networks will facilitate smoother distribution channels, allowing businesses to thrive.

The rise of e-commerce in Africa is transforming the way goods are traded, creating a burgeoning demand for efficient logistics services. As more consumers turn to online shopping, companies must adapt their logistics strategies to support rapid delivery models.

The adoption of technology in logistics—ranging from advanced tracking systems to automation—offers the potential for increased efficiency and reduced costs.

Lastly, as African countries continue to embrace renewable energy solutions, there's an opportunity for sustainable logistics practices to emerge, aligning with global efforts to combat climate change.

Collectively, these opportunities signal a transformative era for the logistics landscape in Africa.

Challenges to overcome

Despite these opportunities, the logistics sector in Sub-Saharan Africa faces significant hurdles.
One of the primary challenges foreign investors face in Africa is the underdeveloped infrastructure for logistics. The World Bank reports that less than 30% of the continent’s roads are paved, which exacerbates the costs and complexities of moving goods. This shortfall hinders the economically viable import and export of essential strategic goods and minerals needed to establish new markets and infrastructure.

While large international corporations have recently made substantial investments across the continent, it is crucial for African nations to focus on upgrading and repairing existing supply chain assets, such as roads, railways, ports, and warehouses to enhance their capacity to attract further foreign investment.

High logistics costs, exacerbated by inefficient port processes and a lack of digital solutions, remain a primary concern. Moreover, regulatory hurdles continue to impede the seamless flow of goods across the region. Inconsistent customs regulations and lengthy clearance times can lead to delays and increased costs, impacting the overall efficiency of supply chains.

Inefficient port processes are critical nodes in the logistics network, and many African ports suffer from inefficiencies that lead to delays and increased costs. Modernising port infrastructure, implementing advanced management systems such as automated container handling, and real-time tracking could significantly enhance port efficiency. Additionally, while the potential of digital technologies is vast, their current adoption in Sub-Saharan Africa is slow, necessitating investments in technology and digital literacy to overcome these challenges.

A strategic approach

At DACHSER South Africa, we understand these challenges and are committed to providing intelligent logistics solutions that cater to the unique needs of the Sub-Saharan market. Our approach leverages technology and a deep understanding of the local market. We offer customised services such as air and ocean freight, contract logistics, and warehousing solutions tailored to specific industry needs. For instance, our expertise in automotive and healthcare logistics allows us to support these critical sectors with precision and reliability.

Information security is a cornerstone of our operations. We have obtained TISAX® Level 2 certification, ensuring that our logistics processes meet the highest standards of data protection. This commitment to security helps safeguard our clients' supply chains and builds trust in our capabilities. Sustainability is also a key focus for DACHSER. We are actively working to reduce our carbon footprint through investments in energy-efficient technologies and more sustainable transport solutions. Since 2022, Dachser has been purchasing 100% green energy on a global level.  By promoting eco-friendly practices, we aim to lead the charge towards a more sustainable logistics future in Africa.

The future of logistics in Sub-Saharan Africa is bright, but realising its full potential requires a concerted effort to overcome existing challenges. By harnessing the region's opportunities and addressing its hurdles with innovative solutions, we're confident in our ability to drive growth and efficiency in this dynamic market as we work with our clients to navigate the complexities of the logistics landscape and unlock new avenues for success in Africa. The AfCFTA and regional cooperation will be vital in this transformation, connecting African markets and enhancing global competitiveness. Now is the time for businesses to invest in Sub-Saharan Africa; the potential for growth and development is immense, and with the right strategies in place, the region can become a global logistics powerhouse.

"We have set the course"

2021 was a year of diverse challenges that DACHSER was able to master with great stability and resilience. At the same time, the company set an important strategic course, particularly with regard to its climate protection activities. Here is a text from CEO Burkhard Eling.

Striving for security of supply

In the recent past, supply chains have proven increasingly fragile and at risk. The reasons are manifold. To counteract this, companies are taking far-reaching measures. What these look like and how DACHSER can manage complex supply chains against this backdrop are the thoughts of CEO Burkhard Eling.

The past 18 months have laid bare some of the weak points in the global economic system: just-in-time with lean warehousing, the focus on individual manufacturing sites in Asia, and the one-sided concern with efficiency and costs—all relied on structures that proved too fragile and too susceptible to disruption.

Companies have now analyzed their supply chains and are taking concrete action, such as expanding their warehouse capacity in Europe and the US, decentralizing production, and obtaining raw materials and intermediate products from multiple suppliers. In short, they are striving for security of supply. But that does not imply a shift to de-globalization. Supply chains will remain global, but they will become more complex.

Finding solutions even under difficult conditions

At DACHSER, we have no trouble managing complex supply chains; in fact, it’s our core expertise. We’re able to offer solutions that work even under difficult circumstances, which explains our continued success in the first six months of 2022. But prospects are dim: enormous cost increases in almost all areas will stifle demand and, as a consequence, significantly slow the current growth momentum.

We are already hard at work preparing for this scenario. For instance, we’re investing in digitalization and automation to make supply chains more efficient and more transparent. But we’re also investing in the people at DACHSER. After all, digital skills at all levels of the company will decide our success in the future.

Navigating complex waters: How specialised services simplify customs and insurance for businesses

Businesses trading internationally face an increasingly complex web of customs regulations and insurance requirements that can derail operations and drain profits. Changing regulatory requirements, security measures, inadequate insurance coverage, and compliance failures create mounting pressure. Without proper expertise, companies remain vulnerable to delays, penalties, and financial losses.

The right logistics partner with customs and insurance expertise is crucial for international business success, says Detlev Duve, Managing Director of Dachser South Africa. "As businesses face pressure to ensure compliance whilst managing costs, it's essential to partner with a provider that understands the complexities of international trade and can provide customised solutions."

According to Duve, essential factors for navigating customs and insurance successfully include regulatory knowledge, security certifications, insurance guidance, and risk management. "Potential customers should carefully evaluate how their logistics partners address compliance and protection needs. A lack of measures can lead to operational disruptions and financial exposure."

Dachser's approach to customs and insurance covers services including customs data announcements, documentation preparation, and insurance advisory services.

Customs expertise for international trade

International trade requires businesses to deal with customs regulations across multiple countries, each with its own requirements and security protocols. Dachser provides customs clearance services to businesses across all industries.

The company is certified as an Authorised Economic Operator (AEO) in several countries. This status provides customs control benefits worldwide – benefits which Dachser passes on to its customers. "Having AEO certification makes customs controls easier and ensures a consistent international supply chain," says Duve. "Our customs-approved security standards not only simplify customs clearance, they are also a seal of approval for global trading partners."

Effective customs clearance requires more than just form-filling – it demands understanding of international trade regulations and security protocols. Dachser's experience with programmes such as C-TPAT (Customs-Trade Partnership Against Terrorism) positions the company as a trusted partner for businesses requiring reliable customs clearance.

Take the case of businesses exporting to the United States, which must comply with the 10+2 rule under the Importer Security Filing (ISF), where ten defined entries must be transmitted electronically to US Customs at least 24 hours before the ship leaves the port of departure. "We have been working as a registered filer on behalf of clients since 2009," says Duve. "Incorrect, late or missing filings can result in fines between $2,500 and $5,000, making professional handling necessary."

Electronic customs procedures ensure fast and safe handling whilst reducing processing times. Dachser's customs specialists possess deep regulatory knowledge gained through decades of international experience. "We carefully navigate consignments through local and international customs rules and coordinate the entire customs clearance process with local authorities," explains Duve.

As a global business, Dachser has an extensive network and can handle complex customs requirements across borders whilst maintaining the personal touch through local expertise. "Our team of customs specialists understands the details of international trade regulations and uses this knowledge to deliver customised solutions that meet our clients' compliance needs."

Insurance expertise and risk management

When it comes to insurance, shipping to unfamiliar destinations that do not have well-organised infrastructure can add to the risk factor. While damage and loss is rare, it can be very expensive, making insurance costs money well spent, says Duve. Service delivery is at the heart of Dachser's insurance operations. Dachser is registered as an FSP in South Africa and clients benefit from insurance guidance that addresses potential coverage gaps.

"Not understanding insurance implications is a major risk for businesses," says Duve. "Our expert team advises clients on managing risks and filling insurance gaps, often assisting with documentation to ensure smooth clearance and delivery whilst protecting against financial exposure."

For example, when it comes to protecting valuable shipments, it's vital to understand the difference between liability coverage and cargo insurance during transit, explains Duve. "Many businesses confuse freight insurance with cargo insurance, assuming their shipments are covered for full value with freight insurance," says Duve. "This misunderstanding can be a costly error, as freight insurance compensation is calculated on weight basis – meaning the same amount would be paid for one kilogram of platinum as for one kilogram of paper. Cargo insurance, which can be taken to cover the full value of a shipment while it is in transit, protects the customer.”

As a logistics specialist in Africa, DACHSER South Africa is responsible for coordinating almost every aspect of customers shipments. “It makes sense for us to handle cargo insurance too as a value-added service,” says Duve. “We negotiate contracts, pay the premiums and submit claims on behalf of our customers, managing correspondence until a settlement is reached.”

Harnessing global networks

With  433 locations in 43 countries, Dachser's global network provides customs and insurance expertise across key markets. This global reach helps when dealing with international trade regulations and security requirements. Dachser's decades of international experience ensures timely clearances, appropriate coverage, and avoidance of costly penalties and exposure.

"As an international logistics provider, it's essential to maintain excellent relationships with customs authorities and possess deep knowledge of trade regulations and insurance principles," says Duve. "When challenges arise, our expertise and network ensure we are in the best position to assist and keep clients protected and compliant. We strive to be a logistics partner that truly understands the details of customs compliance and insurance protection, committed to safeguarding our clients' interests," Duve concludes.

(ENDS)

About DACHSER:

Dachser, a family-owned company headquartered in Kempten, Germany, provides transport logistics, warehousing, and customized services in two business fields: Dachser Air & Sea Logistics and Dachser Road Logistics. The latter consists of two business lines: Dachser European Logistics and Dachser Food Logistics. Comprehensive contract logistics services and industry-specific solutions round out the company’s range. A seamless shipping network—both in Europe and overseas—and fully integrated IT systems ensure intelligent logistics solutions worldwide. Thanks to some 37,300 employees at 433 locations all over the globe, Dachser generated consolidated net revenue of approximately EUR 8 billion in 2024. The same year, the logistics provider handled a total of 83.2 million shipments with a tonnage of 44.1 million metric tons. Country organizations represent Dachser in 43 countries. For more information about Dachser, please visit dachser.com