Global logistics company DHL Group has invested about €47-million in sub-Saharan Africa in order to encourage development in the region and demonstrate the overall importance of emerging markets in the company’s 2020 strategy.
During his stay in South Africa and Nigeria, DHL Group CEO Frank Appel mentioned that emerging market revenues contributed over 20% to Deutsche Post DHL Group’s revenues, but, the group expected this figure to climb to 30% by 2020.
Owing to this, DHL will continue to concentrate on organic growth by investing into promising present and future markets.
“DHL already has a strong footprint in Africa, but we see some excellent opportunities to further increase our presence in the sub-Saharan region. South Africa’s geographic location as the gateway to Africa, and Nigeria’s growing gross domestic product and diversifying markets are only two of the many important indicators for this,” he notes.
Currently, DHL operates across 51 countries and territories in the African region and has planned investment in excess of €17-million in 2015. Further major projects under way include upgrades to facilities and shipment handling systems throughout the region.
In October 2014, DHL announced investments amounting to €30.5-million in South Africa, by both its Supply Chain (€14.5-million) and Global Forwarding (€16-million) divisions.
Appel believes that these commitments signal the group’s long-term growth plans for the region as they will entail the introduction of state-of-the-art infrastructure, information technology systems and world-class services to support businesses operating in Africa.
For DHL Global Forwarding, the leading provider of air, ocean and road freight services, its €16-million facility, located at the Plumbago Business Park, occupies 12 000 m2 of warehouse space and 5 500 m2 of office space. Moreover, the new premises in South Africa will strengthen the country’s growth capabilities as the hub for distribution into the region.
The €14.5-million investment into DHL Supply Chain’s 25 000 m2 multi-user warehouse facility caters to its technology client portfolio, as well as some key fast-moving consumer goods clients.
“Staying close to the market and being responsive to customer needs are DHL’s fundamental principles. We have established world-class facilities in sub-Saharan Africa to support our global network, and I am delighted to witness first-hand the sustained efforts of our employees to deliver best-in-class services. We are committed to sub-Saharan Africa and will continue to build on our successful four-decade legacy in the region,” Appel concludes.