Logistics service providers in Africa are reporting a significant increase in project cargo and breakbulk volumes, signalling a positive recovery in the continent's project sector after facing challenging times. Duncan Bonnett, a partner at Africa House, highlighted that subdued global demand for minerals, high energy prices, higher borrowing costs, and disruptions to global value chains had previously impacted the project sector. However, recent developments indicate a promising turnaround, especially in mining activities across the continent.One of the key factors contributing to the sector's resurgence is the opening of new mines and expansion at existing facilities. Southern Africa, in particular, has witnessed a surge in activity at copper, manganese, and lithium mines. Additionally, South Africa was experiencing expansion in copper and manganese mines, which was in response to the growing demands for these essential commodities, said Bonnett.Despite the challenges posed by the global pandemic and geopolitical incidents, such as the war in Ukraine, the African continent has also benefited from positive developments in the mining industry. Prices and demand for platinum group metals (PGMs), copper, cobalt, iron ore, gold, and coal – major mining revenue earners for Africa – are expected to remain relatively high in the near future.“This upswing in project cargo and breakbulk volumes is not only an encouraging sign for the industry's recovery but also speaks to the sustainability of ongoing work in the region. As African countries continue to capitalise on their vast natural resources, the sector's growth is likely to bring about economic benefits and employment opportunities for local communities,” Bonnett told Freight News.The recent improvements in the project cargo and breakbulk sector underscore Africa's resilience and potential as an emerging player in the global market. With ongoing efforts to support and foster economic growth, the continent is poised to strengthen its position in the international trade landscape. As the recovery gains momentum, stakeholders and investors can look forward to increased business opportunities in the African project sector.Howie Frylinck, general manager of Pentagon Freight Services, emphasised that the surge in volumes was not limited to local regions. "We are witnessing a notable global increase in volumes as numerous projects gain momentum," he stated.Furthermore, in Africa, the continuous emphasis on infrastructure development serves as an additional catalyst for the rising volumes. With countries actively investing in the construction of roads, bridges, ports, and other significant infrastructure projects to bolster their economies, the demand for efficient transportation of large-scale project cargo throughout the continent is expected to persist.
