At a Glance
- Africa’s richest investors are channeling billions into ports and logistics expansion.
- AfCFTA reforms and rising trade volumes drive investor focus on transport networks.
- Global and local tycoons see logistics as key to Africa’s industrial growth.
Africa’s logistics and ports industry is quickly becoming one of the continent’s most attractive investment frontiers.
From Africa’s richest billionaire, Aliko Dangote, to global operators such as DP World and APM Terminals, investors are channeling billions into infrastructure designed to move goods faster and more efficiently.
The boom is being driven by rising trade volumes, economic reforms, and the promise of the African Continental Free Trade Area (AfCFTA).
A new era of trade and infrastructure
The AfCFTA, which aims to bring together 54 African nations under a single market, is reshaping investor priorities in logistics and transportation.
As tariffs fall and cross-border trade expands, ports, railways, and highways have become vital to unlocking Africa’s economic potential.
The African Development Bank estimates that intra-African trade could rise by more than 50 percent over the next decade. Yet logistics costs across the continent remain as much as 75 percent higher than global averages.
This gap between potential and infrastructure capacity has drawn the attention of Africa’s wealthiest investors, who see logistics not only as a strong business bet but also as a path to national development.
“Efficient logistics are the backbone of industrial growth,” said a Lagos-based infrastructure analyst. “Those who build and manage the arteries of trade will shape Africa’s economic future.”
Key drivers behind the investment wave
1. Rising trade volumes:
Africa’s population, expected to reach 1.7 billion by 2030, is fueling demand for goods, materials, and manufacturing. The strain on outdated systems is forcing governments and private capital to expand capacity and modernize infrastructure.
2. Infrastructure gaps:
The continent’s transport and logistics shortages are being recast as opportunities. Reliable ports, storage hubs, and transport networks are key to making African economies more competitive and connected.
3. Long-term growth potential:
With a growing middle class and rising consumer spending, Africa’s logistics sector offers steady, long-term growth. Investors are positioning early to benefit from a market expected to add nearly $16 trillion to global GDP by 2050.
Notable investments redrawing the map
1. DP World in Tanzania:
Dubai-based DP World secured a 30-year concession to modernize and operate Tanzania’s Dar es Salaam Port, investing more than $250 million to boost capacity and reduce cargo delays.
2. APM Terminals in Ghana:
In Ghana, APM Terminals is expanding its presence at Tema Port, one of West Africa’s busiest gateways, to support the nation’s growing industrial base.
3. Lekki Deep Seaport, Nigeria:
Nigeria’s $1.5 billion Lekki Deep Seaport, which has been operational since 2023, is reshaping West Africa’s logistics landscape. Regarded as Nigeria’s first deep-seaport, located in the Lagos Free Trade Zone, it is expected to add approximately $360 billion to Nigeria’s economy over its lifespan, thereby strengthening Lagos’s role as a regional trade hub.
4. Dangote’s Olokola Port Vision:
Africa’s richest man, Aliko Dangote, plans to develop the Olokola Port within the Olokola Free Trade Zone as part of his industrial expansion. The port will connect to his refinery and fertilizer plants, easing export bottlenecks and cutting logistics costs.
5. Taiwo Afolabi and SIFAX Group:
Through SIFAX Group, Taiwo Afolabi runs one of Nigeria’s most active private logistics networks. Its Ports & Cargo Handling Services at Tin Can Island Port continue to expand operations across West Africa.
6. Gagan Gupta’s Arise Group:
Arise Ports & Logistics, founded by Gagan Gupta, is building integrated industrial and logistics platforms in Gabon, Côte d’Ivoire, and beyond—linking ports directly to manufacturing zones for faster supply chains.
Challenges and the road ahead
Despite growing investment, Africa’s logistics systems still face persistent challenges. Weak road and rail links, regulatory inconsistencies, and bureaucratic hurdles often slow progress. Port congestion remains a concern, for example, in Lagos (Nigeria), Mombasa (Kenya), Dar es Salaam (Tanzania), and Durban (South Africa), where infrastructure bottlenecks, outdated equipment, and slow customs processes continue to delay cargo movement and raise logistics costs.
However, the shift toward greener and more sustainable infrastructure is still in its early stages.
Even so, change is underway. Governments and private operators are investing in digital systems, renewable-powered transport, and public-private partnerships to improve efficiency. “Africa’s logistics sector is evolving fast,” said a Nairobi-based trade consultant. “Investors who think long term will help shape the future of trade on the continent.”
The bottom line
From Lagos to Dar es Salaam, logistics and ports are emerging as pillars of Africa’s growth story. For both local tycoons and global players, the message is clear: the future of African trade depends on who builds—and owns—the infrastructure that keeps it moving.
As the continent deepens its integration into global supply chains, control over logistics and port assets will determine not just profits, but the pace and direction of Africa’s industrial rise.
