Powering Africa’s economy through infrastructure and logistics

Africa Global Logistics (AGL) is making significant strides in driving economic growth across Africa through strategic investments in infrastructure and logistics. With an impressive investment of over €1.54 billion in African development, AGL is aligning its vision with the Africa CEO Forum's theme of shaping a new future for the continent. In an exclusive interview with CNBC Africa's Flora Limukii, Tony Stenning, the Managing Director of Africa Global Logistics in Southern Africa, sheds light on the company's ambitious plans for the region. AGL, the largest logistics and port operator on the continent, is now under the ownership of the MSC Group, the leading shipping line globally, enabling AGL to cover a wide range of logistics activities. Stenning discusses the impact of the shifting global trade dynamics on supply chains, the countries AGL is eyeing for investment, and the strategic vision for infrastructure and logistics development in Africa. Stenning emphasizes AGL's commitment to not only enhancing efficiency in moving goods but also to driving economic stability and job creation across the continent. One of the key challenges faced by supply chains currently is the disruption caused by the issues in the Red Sea. Vessels now have to circumnavigate the Cape, leading to extended travel times to reach ports in southern and eastern Africa. This has resulted in delays and congestion at several ports, impacting global trade but particularly affecting the regions of eastern and southern Africa. While these challenges are significant, AGL remains focused on overcoming them and ensuring seamless logistics operations. AGL has a strong presence across Africa, with historical investments in West Africa that include the management of ports and railway concessions. The company is now looking to expand further in South Africa through acquisitions and in Rwanda, where it sees immense growth potential. Additionally, AGL has set its sights on developing rail options in Tanzania and recently acquired the concession of Zanzibar Port, showcasing its commitment to strategic investments in key African regions. Stenning highlights the interconnected nature of infrastructure and logistics development, emphasizing that significant investments in infrastructure are crucial to enhancing the movement of goods efficiently and cost-effectively. AGL is not only focused on operating as a logistics company but also on investing in ports, rail operations, road infrastructure, and green solutions to promote sustainable growth across Africa. The company's strategic vision includes simplifying the supply chain, strengthening its freight forwarding capabilities, and streamlining border and customs processes to create better value for its customers. In terms of job creation and economic stability, AGL's investments are directly contributing to growth in various African countries. Stenning cites an example in Rwanda, where AGL's investments have led to the creation of jobs both directly and indirectly, stimulating economic activity and benefiting local communities. AGL's commitment to driving economic development through its infrastructure projects underscores the company's dedication to fostering growth and prosperity across the continent. Despite progress, Stenning acknowledges that challenges remain in achieving the free movement of goods and labor across Africa. While there has been some advancement in regional cooperation, the journey towards seamless intra-African trade is ongoing and complex, given the diverse political agendas of the continent's 54 countries. Stenning emphasizes the importance of continuous efforts to facilitate easier movement of goods and labor to unlock Africa's economic potential and drive sustainable development. In conclusion, Africa Global Logistics is at the forefront of transforming Africa's economic landscape through innovative infrastructure and logistics solutions. With a strategic focus on driving growth, creating employment opportunities, and enhancing connectivity across the continent, AGL is playing a pivotal role in shaping a prosperous future for Africa's economies.