Demand for project cargo services is set to grow strongly in Africa over the short to medium term.The first driver is Africa’s vast mineral deposits, which are essential for the global shift to low-carbon and digital technologies.According to United Nations estimates, the continent holds 55% of the world's cobalt, 47.65% of manganese, 21.6% of natural graphite, 5.9% of copper, 5.6% of nickel and 1% of lithium.Expansion of existing mines and the opening of new ones will need to be supported by project logistics.If the rhetoric around beneficiation is translated into action, then there will also be demand for processing equipment.A third driver of demand for project logistics is investment in roads, rail, ports, airports, dams, power stations, wind and solar farms.The potential has attracted the attention of multinationals.Thomas Vestergaard, CEO of Denmark-based UPF Group, sums up the sentiment: “Africa is a growing market for a combination of reasons. It is not quite so exotic nowadays, plus people are being forced to do something as Europe is declining.”Recently, Blue Water Shipping opened offices in Walvis Bay and Cape Town “due to increasing activities within particularly solar, wind, hydrogen, oil and gas, and mining sec t ors”.In a blog, Seamaster Maritime & Logistics describes the future of the project cargo supply chain in southern Africa as bright. “The region is experiencing rapid economic growth and is investing heavily in new infrastructure projects. “This is creating new opportunities for project cargo supply chain companies.”The Agility Emerging Markets Logistics Index 2024 states: “Africa has a young and rapidly growing population, forecast to reach 2.4 billion by 2050.“Urbanisation of this population is driving demand for infrastructure, including roads, ports, airports, digital infrastructure, power generation and water distribution.”It says the changing demographics are behind major projects such as the Trans-African highways projects that will link Algeria, Tunisia, Mali, Niger, Chad and Nigeria.In June 2023, the Tanzania National Roads Agency awarded contracts for the construction of seven new roads totalling 2 035 kilometres. In addition, the French Development Agency is supporting the building of a power line in the gold mining region of Geita.On the question of investment in Africa, Agility’s emerging markets index highlighted a renewed global interest. It said: “Indeed, there is plenty of evidence for increased engagement and investment commitments made by major global powers in Africa.”Challenges which project logistics companies will have to overcome include infrastructure gaps, skills shortages and corruption.
