Reshaping Africa’s logistics sector

Logistics in Africa presents both significant opportunities and challenges. The continent's diverse landscape, rapid urbanization, and economic growth create a dynamic environment for the logistics sector. CNBC Africa’s Aby Agina spoke to Mathieu Friedberg, the CEO for CEVA Logistics, on the sidelines of the Africa CEO Forum in Kigali, Rwanda. Friedberg highlighted the importance of Africa as a key area of development for CEVA Logistics, positioning the continent as a crucial focus for the company's growth strategy. He emphasized the forum as a valuable platform for networking, learning, and strategic thinking, citing the importance of meeting both familiar faces and new connections. Global trade has experienced various disruptions in recent years, with the pandemic and geopolitical crises influencing the maritime routes and overall trade landscape. Despite these challenges, Friedberg remains optimistic about the momentum in global trade, noting a continued growth trajectory. In the context of Africa, Friedberg underscored the continent's status as a significant importer and exporter, highlighting the role of logistics players in facilitating trade flows both into and out of Africa. CEVA Logistics aims to leverage its expertise to support customers in navigating the diverse logistics landscape of the continent, focusing on building an ecosystem to enhance connectivity and efficiency along various corridors. When discussing specific growth areas in Africa, Friedberg pointed to the continent's expanding population and highlighted key markets such as South Africa, North Africa (including Egypt), West Africa (notably Nigeria), as well as fast-growing economies like Ivory Coast, Kenya, and Rwanda. Friedberg expressed a positive outlook on the widespread opportunities across Africa, emphasizing the importance of being present in areas where economic activities are thriving. The conversation shifted to the impact of recent geopolitical events on global trade, particularly the crisis in the Red Sea region due to escalated conflicts in the Middle East. Friedberg acknowledged the disruptions caused by the rerouting of vessels and subsequent pressure on freight rates. While the duration of these challenges remains uncertain, Friedberg emphasized the resilience of supply chains in adapting to new routes and mitigating disruptions. He noted the ongoing need for flexibility and innovation to navigate such unforeseen events. In closing, Friedberg addressed concerns about rising trade costs and the push for greater cost efficiency and integration in African trade. Recognizing the multifaceted nature of these challenges, Friedberg highlighted a dual perspective, foreseeing potential cost increases driven by sustainability goals alongside technological disruptions that could enhance productivity and offset rising expenses. With a positive outlook, Friedberg expressed confidence in the industry's ability to adapt and innovate in response to evolving trade dynamics.