Middle East & Africa exports to grow 12% in next decade

Barloworld Logistics, a provider of smart logistics and supply chain solutions, plans to expand their current supply chain solutions from UAE to the GCC and Africa capitalising on the ongoing transformation of the region. According to Ernst and Young’s 2012 Rapid Growth Markets (RGM) Forecast, exports from the Middle East and Africa are predicted to grow by more than 12% over the next 10 years.

Similarly, the 2012 African supply chain foresight report has noted great potential for the African continent as a logistics market. This is due to the fast growth of GDP in some African regions and increased demand for cargo services across most industry sectors. As a result the African logistics market is set to grow over the next five years.

Africa, in particular, has emerged as a key supplier of the resources and raw materials that are powering the growth of emerging economies such as China, India and Russia; a trend that is expected to significantly influence the future demand for logistics and supply chain solutions, with Africa and the GCC as a hub. Many of the products driving the demand for cargo services are derived from natural resources from Africa's well-known industries of mining, chemicals and agriculture.

Barloworld Logistics' Chief Executive for EMEA region, said, "Africa's positioning as a strategic target market makes it imperative to have a strong and well-established logistics sector to supplement the desired growth. According to the African supply chain foresight survey, 58% of respondents are planning to expand their sales into Africa and 44 % of respondents are planning to sell through partners. The study also found that 75% of respondents find it difficult to find reliable service providers and partners in Africa. As an African Supply Chain company, Barloworld Logistics is committed to addressing this gap by further expanding its presence across strategic locations in Africa and the GCC. We have in-depth knowledge of the African market, being a homegrown company established in South Africa and this gives us a competitive advantage to better understand and cater to the distinct requirements of domestic markets."a