Africa Cross Border Road Freight Transport Market – Growth, Trends, COVID-19 Impact, and Forecasts (2021 – 2026)

The Africa Cross Border Road Freight Transport Market is segmented by End User (Manufacturing and Automotive, Oil and Gas, Chemicals, Agriculture, Fishing, and Forestry, Construction, Distributive Trade, Pharmaceutical and Healthcare, and Other End Users (Telecommunications, Food and Beverage, etc.) and Geography (South Africa, Morocco, Egypt, Nigeria, Kenya, and Rest of Africa).

Market Snapshot

CAGR
Study Period: 2017-2026
Base Year: 2020
CAGR: >4.5 %

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Market Overview

The African cross border freight transport market is expected to exhibit a CAGR of about 4.5% during the forecast period. The growth in the sector is facilitated by the multiple trade agreements of the African countries and the increasing penetration of e-commerce in the region. Various sectors like automotive and distributive trade are increasingly demanding the development of road freight services in order to facilitate a seamless, fast, cheap, and sustainable transportation of goods within the countries and in the region.

The preventive measures taken during the COVID-19 pandemic are having a severe effect on the cross-border value chains and trade and transport services. In the case of fruit exporters, many trucked their goods cross-country to Port Elizabeth and, in some cases, as far as Durban – 1,635 km away. The pandemic is creating opportunities for some and challenges for other sectors in the region. On the one hand, e-retail logistics, on-demand, and last-mile delivery sectors are among the highest growth sectors as a result of the coronavirus crisis. On the other hand, the automotive, oil and petroleum distribution, construction, and steel production sectors have seen a drastic fall in demand in the region.

Scope of the Report

Cross border road freight refers to transportation activities, infrastructures, and flows that support the passage of freight across an international border through roads as its mode of transportation.

The report provides a comprehensive background analysis of the cross border road freight market, covering the current market trends, restraints, technological updates, and detailed information on various segments and the competitive landscape of the industry. The impact of COVID-19 has also been incorporated and considered during the study.

The African cross border road freight transport market is segmented by end user (manufacturing and automotive, oil and gas, chemicals, agriculture, fishing, and forestry, construction, distributive trade, pharmaceutical and healthcare, and other end users (telecommunications, food and beverage, etc.) and geography (South Africa, Morocco, Egypt, Nigeria, Kenya, and Rest of Africa).

By End User
Manufacturing and Automotive
Oil and Gas and Chemicals
Agriculture, Fishing, and Forestry
Distributive Trade
Pharmaceutical and Healthcare
Other End Users (Telecommunications, Construction, Food and Beverage, etc.)
By Geography
South Africa
Morocco
Egypt
Nigeria
Kenya
Rest of Africa

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Key Market Trends

Growing Intra-regional Trade in the Region

The African Continental Free Trade Area (AfCFTA), commenced in January 2021 under a liberalized trade regime, is one of the largest trading blocs in the world, with the majority of African countries operating under its privileged trade framework. The agreement will reduce tariffs among the member countries (41 countries and the RECs, including SACU, EAC, CEMAC, and ECOWAS) and cover policy areas such as trade facilitation and services and technical barriers to trade. Full enactment of AfCFTA would reshape markets and economies across the region and boost output in various sectors, including services, manufacturing, and natural resources.

The agreement covers both goods and services and provides a platform for individual countries to engage in intra-African trade through offers of tariff allowances and service commitments. The five prioritized sectors for liberalization within the agreement include business services, communication, financial services, transport, and tourism. The sectors that are anticipated to benefit from trade liberalization immediately include automotive, agro-processing, pharmaceuticals, textiles, chemicals, and mineral beneficiation.

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Road Infrastructure Development in Africa

Africa has been steadily increasing investments in its road infrastructure development in order to enable and encourage road cargo transport. The African continent has significantly benefited from China’s Belt and Road Initiative, where China has not only invested in the expansion of new urban and rural infrastructure but also has improved the existing infrastructure. Meanwhile, the UK-Africa partnership is also driving African socioeconomic development via infrastructure development.

Countries like Nigeria, Kenya, and South Africa are actively investing in the development of their road network and infrastructure, including the implementation of Information and Communications Technology (ICT) in order to monitor and communicate with trucks during their journey). Kenya has also started work on 800-km, about USD 2 billion toll-road contracts, and USD 3 billion rural road development contracts, which will help road freight companies get better reach and develop quality services. The superhighways like the Nairobi Southern Bypass, the Great North Trans-African Highway (Nairobi to Cape Town), and Nairobi-Thika are expected to make road cargo transport across Kenya and cross-border transport hassle-free.

The South African government allocated another USD 1.4 billion for the development of 940 road projects that, in the long run, is expected to improve connectivity and offer road freight operators greater access to remote markets.

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Competitive Landscape

The African cross border freight transport market is fragmented, with various domestic and international companies actively involved in the market. Companies like DSV, Cargo Carriers, Unitrans Supply Chain Solutions, and Barloworld Logistics are some of the major players in the market.

The trucking industry in the region is facing intense competition in terms of technological improvements. Driver shortage, lack of skilled people, and the threat of cargo theft are among some of the downsides prevailing in the market.

Recent Developments

December 2020: DSV Panalpina expanded its presence in Africa with the acquisition of Globeflight Worldwide Express, a South Africa-based courier company. As part of the acquisition, DSV Panalpina will take over all of Globeflight’s operations in South Africa and Swaziland.

August 2020: DHL Saloodo! partnered with AfricaPLC to grow intra-African and global trade. Saloodo! will be the first logistics partner to provide digital road freight solutions on the AfricaPLC e-trade marketplace. AfricaPLC assists in digitizing African SMEs, so they can participate in and support the African Continental Free Trade Area (AfCFTA). The partnership expects to expand across the continent through 2021.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

    1. 2.1 Analysis Methodology

    2. 2.2 Research Phases

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS AND INSIGHTS

    1. 4.1 Current Market Scenario

    2. 4.2 Market Dynamics

      1. 4.2.1 Drivers

      2. 4.2.2 Restraints

      3. 4.2.3 Opportunities

    3. 4.3 Value Chain/Supply Chain Analysis

    4. 4.4 Government Regulations, Trade Agreements, and Initiatives

    5. 4.5 Technological Developments in the Logistics Sector

    6. 4.6 Insights into the Transportation Costs, Transit Times, and Costs Associated with Border Crossing in Key Routes

    7. 4.7 Insights into Cross Border E-commerce (B2C and B2C)

    8. 4.8 Insights into Rules and Regulations at Key Border Crossing Points (Customs, Licensing, Duties and Taxes, etc.)

    9. 4.9 Insights into Key Transport Corridors

    10. 4.10 Insights into Manufacturing Hubs and Special Economic Zones (SEZs) in Key Countries

    11. 4.11 Spotlight on Cross Border Freight Transport (LTL, FTL, and CEP)

    12. 4.12 Industry Attractiveness - Porter's Five Forces Analysis

    13. 4.13 Impact of COVID-19 on the Market

  5. 5. MARKET SEGMENTATION

    1. 5.1 By End User

      1. 5.1.1 Manufacturing and Automotive

      2. 5.1.2 Oil and Gas and Chemicals

      3. 5.1.3 Agriculture, Fishing, and Forestry

      4. 5.1.4 Distributive Trade

      5. 5.1.5 Pharmaceutical and Healthcare

      6. 5.1.6 Other End Users (Telecommunications, Construction, Food and Beverage, etc.)

    2. 5.2 By Geography

      1. 5.2.1 South Africa

      2. 5.2.2 Morocco

      3. 5.2.3 Egypt

      4. 5.2.4 Nigeria

      5. 5.2.5 Kenya

      6. 5.2.6 Rest of Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Market Concentration Overview

    2. 6.2 Company Profiles

      1. 6.2.1 DSV South Africa (Pty) Ltd

      2. 6.2.2 DHL Freight Forwarding

      3. 6.2.3 Unitrans Supply Chain Solutions (Pty) Ltd

      4. 6.2.4 CEVA Logistics

      5. 6.2.5 Cargo Carriers (Pty) Ltd

      6. 6.2.6 Barloworld Logistics Africa (Pty) Ltd

      7. 6.2.7 Value Logistics Ltd

      8. 6.2.8 APM Terminals Trucking South Africa (Pty) Ltd

      9. 6.2.9 Bidvest Freight (Pty) Ltd

      10. 6.2.10 Biddulphs Removals and Storage SA (Pty) Ltd

      11. 6.2.11 DPD Laser Express Logistics (Pty) Ltd

      12. 6.2.12 Super Group Ltd*

    3. *List Not Exhaustive
  7. 7. FUTURE OF THE MARKET

  8. 8. APPENDIX

**Subject to Availability

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Frequently Asked Questions

The Africa Cross Border Road Freight Transport Market market is studied from 2017 - 2026.

The Africa Cross Border Road Freight Transport Market is growing at a CAGR of >4.5% over the next 5 years.

DSV South Africa (Pty) Ltd, DHL Freight Forwarding, Unitrans Supply Chain Solutions (Pty) Ltd, CEVA Logistics, Cargo Carriers (Pty) Ltd are the major companies operating in Africa Cross Border Road Freight Transport Market.

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