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DHL bets $349.6m on Africa as regional trade integration deepens

German logistics giant eyes e-commerce, supply chain growth
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DHL Group, a German multinational logistics and supply chain management company, has announced plans to invest over €300 million ($349.6 million) in sub-Saharan Africa — its second-largest commitment to the region’s rapidly expanding trade sector.

The investment, unveiled on Tuesday on the company’s official website, will be deployed over several years to expand infrastructure, enhance service capacity, and strengthen the competitiveness of African businesses in global markets.

“Africa is at a pivotal moment in its trade journey. Our investment reflects confidence in Africa’s future and DHL’s commitment to enabling the trade flows that drive inclusive growth,” said John Pearson, CEO of DHL Express.

Pearson added that the company’s focus is on empowering businesses — from Small and  Medium-sized Enterprises (SMEs) to large corporations — to compete globally through improved logistics connectivity.

The funds will be distributed across three business units — DHL Express, DHL Global Forwarding, and DHL Supply Chain — with investments targeted at high-growth sectors such as e-commerce, perishable goods, energy, and life sciences.

DHL said the plan aligns with the African Continental Free Trade Area (AfCFTA), which seeks to deepen intra-African trade through tariff reductions and market liberalisation. While AfCFTA has made notable progress since its launch in 2019 — with 48 countries ratifying the agreement — implementation challenges remain.

To accelerate progress, the Guided Trade Initiative (GTI) launched in 2022, has enabled selected countries, including Kenya, Ghana, and South Africa, to trade under AfCFTA rules, cutting tariffs on 90% of goods and services.

Beyond tariff reductions, AfCFTA’s second phase will tackle key frameworks on intellectual property, investment, and competition policy, crucial for boosting industrialisation and services trade across the continent.

According to the DHL Global Connectedness Tracker, SSA led all regions globally in trade growth in the first half of 2025, recording a 10% year-on-year increase in trade value — outpacing North America (7%) and South & Central America (5%). 

The World Bank projects that AfCFTA could connect 1.3 billion people across 54 nations, creating a $3.4 trillion single market.

Under the new investment plan, DHL Express will upgrade gateways, expand aviation capacity, and improve delivery access to emerging cities, particularly in Nigeria and Ethiopia.

“Our focus is to be closer to customers and make cross-border shipping simpler,” said Hennie Heymans, CEO of DHL Express SSA. “As the only logistics integrator with a dedicated air network in the region, we’re strengthening Africa-Europe and Africa-Asia trade lanes.”

DHL Global Forwarding will enhance freight, cold-chain, and industrial logistics, supporting exports in agriculture, healthcare, and energy. Amadou Diallo, CEO for the Middle East and Africa, said the company is investing in digital tools to improve reliability and visibility in supply chains.

Meanwhile, DHL Supply Chain will expand warehousing and transport capacity, especially in South Africa, where demand for outsourced logistics and healthcare distribution is growing.

The company is also prioritising sustainability and digitalisation, with investments in renewable energy, alternative fuels, AI-powered route optimisation, and digital customs systems. Through its GoTrade initiative, DHL will train African SMEs to access global export markets.

With SSA now ranked as the world’s fastest-growing trade region, DHL’s expansion underscores its long-term bet on Africa’s next frontier of global commerce.

Note: The amount in euros has been converted at an average exchange rate of €1 = $1.17 as of October 14, 2025.

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