[Pulled from Agility] The Agility Emerging Markets Logistics Index is an annual report that ranks emerging market countries for their potential as logistics markets. It utilizes a mixture of economic & trade data, social indicators as well as transport development to conclude the ranking. Supply chain and logistics executives from all across the globe are interviewed for the report and the results are used by Global logistics executives to analyse growth potential and risk for the year ahead.
According to the latest report, the most promising emerging markets for 2016 are South Africa and Nigeria (Currently Sub-Saharan Africa’s two biggest economies) followed by Kenya and Ghana. This shows a high confidence from global investors, in our African countries.
Why is the world interested in Africa’s logistics market?
The interest by investors in Africa, is three-fold, according to the Agility Emerging Markets Logistics Index:
- Mineral and resource demand
- Oil and gas discoveries
- The growing middle class
Africa’s top 9 list
According to the Agility Emerging Markets Logistics Index, the top 9 countries in sub-Saharan Africa preferred for investments in the logistics market over the next 5 years are:
- South Africa
- DR Congo
Drivers and inhibitors of growth in Africa:
Industry professionals are reporting that consumer spending by Africa’s growing middle class is the current driver of growth, even more so than mineral and resource demand.
On the other hand, the leading inhibitor of growth is the prevailing poor infrastructure, government instability and corruption in various countries in Africa.