As cross-border volumes continue to grow, the potential and opportunities in Africa are being unlocked, according to Yvonne Palm, managing director at ECU Worldwide SA. “Current statistics show that the logistics market is growing at a rate of 50% or more annually in the majority of Africa. With the rapid growth within the last few years into Africa, companies have had to align themselves and adapt to reach a part of this developing market,” she told FTW. “Our volumes have seen positive progress within the last few years due to our focus on overborder growth. It is a region that we are extremely positive about.” But it’s not a region without challenges. “There are some real threats – with the biggest probably being the necessity to adapt to and accommodate the cultural diversity, different laws, governance and lack of infrastructure in some areas. At the end of the day everyone has the same goal of ensuring they get best rates and service in the market. The biggest fear for many – and a big threat shipping to and from African countries – is the lack of services and the potential loss of cargo.” Overcoming this should be the key focus, in her view. “We are working daily on addressing threats and analysing new opportunities for this vast market. To understand all the threats that we are faced with we need to understand in-depth what we are dealing with and the only way you can really understand is by having expertise within that country.” ECU Worldwide has invested time and effort in this process over the past few years and now has fully equipped agents in at least 49 of Africa’s 54 countries. “This ensures that we are updated on the latest regulations that are implemented within the respective countries for LCL, FCL and airfreight. There are many small forwarders who shy away from over-border opportunities because they have many uncertainties moving cargo within this market – but we use our considerable agent footprint to create logistical solutions from all the major sea and airports, over border into the landlocked areas of Africa.” With growing competition in the region, it is critical for companies to understand the different markets in which each client is operating. “Costing is just as important, as the outlook for the short term remains that tariffs will continue to be cut. “One has to continuously work on cost to remain competitive.”
ECU Worldwide now has fully equipped agents in at least 49 of Africa’s 54 countries. – Yvonne Palm
