Africa’s Logistics Companies Compete for a Bigger Share of Regional Trade

DP World announced on October 1, 2026, that Nigeria’s TGI Group would acquire a minority stake in its local logistics business, subject to regulatory approval.

The agreement would combine DP World’s freight operations with TGI Group’s distribution network as the companies seek to expand their services across West Africa.

DHL Supply Chain acquired three companies from South Africa’s Vital Group in April, expanding its road transport, warehousing and retail distribution operations.

In Nigeria, Red Star Express reported a 61% increase in freight revenue to ₦1.74 billion for the quarter ended June 2026, while administrative and operating expenses rose approximately 41%.

The transactions and financial results show different approaches to competing for regional freight business.

DP World is pursuing a distribution partnership, DHL has acquired operating capacity, and Red Star Express has reported higher freight revenue alongside rising costs.

Whether these developments translate into greater market share and stronger earnings will depend on subsequent operating results.

African Logistics Companies Secure Contracts and Expand Operations

South African logistics company Transnova retained its position as Tiger Brands’ lead transport partner following a competitive tender concluded in June 2026.

The renewed arrangement extends a relationship dating to 2016. Tiger Brands distributes approximately 2 million tonnes of finished products annually to more than 4,000 customers across 190,000 delivery locations.

Transnova coordinates over 60 transport carriers and administers more than R900 million in annual freight payments on the manufacturer’s behalf.

Kenya’s air cargo industry attracted a $40.1 million acquisition in December 2025 when Turkish aviation services company Çelebi Aviation purchased Transglobal Cargo Centre.

The Nairobi facility has 12,350 square metres of operating space, including 3,300 square metres of temperature-controlled storage, and annual handling capacity of up to 275,000 tonnes.

The acquisition gives Çelebi an established cargo operation at Jomo Kenyatta International Airport.

CEVA Logistics expanded its African operations in May by opening offices in Guinea, Gabon and the Republic of the Congo, increasing its direct presence to 23 countries.

In April, the company established a joint venture with Lagos Free Zone that includes a 9,000-square-metre warehouse near Lekki Port.

The facility provides storage and distribution services for importers and businesses supplying Nigerian and neighbouring markets. CEVA now operates at more than 60 locations across Africa.

US logistics technology company Pigee agreed in September to acquire a 55% stake in Nigeria’s ShipAfrica, with payment structured through cash and equity over 18 months.

ShipAfrica processed more than ₦7 billion in shipping transactions during 2025 through a platform connecting merchants with delivery providers.

The transaction figure represents shipping activity handled through the platform, rather than ShipAfrica’s recognised revenue. The proposed acquisition remains incomplete, and its purchase price has not been disclosed.

African Logistics Revenue Rises as Freight Demand Expands

Intra-African trade reached $213.8 billion in 2025, increasing 5.5%, according to Afreximbank. South Africa accounted for 19.2% of the total, with regional trade covering agricultural products, textiles and manufactured goods.

The figures measure the value of goods traded between African countries rather than revenue earned by transport and distribution companies.

Super Group reported R20.47 billion in supply-chain revenue for the financial year ended June 2026, up 6.1%. Operating profit increased 20.8% to R1.32 billion, supported by stronger distribution activity serving restaurants and consumer goods businesses.

Its operating margin improved from 5.7% to 6.4%. The results include operations outside Africa and cannot be attributed entirely to regional trade.

Bidvest Freight recorded a 15% increase in agricultural cargo volumes, supported by maize exports and rice imports. Revenue rose 1.7% to R9.1 billion, while trading profit increased 10.3% to R2.3 billion.

The company also reported weaker volumes and greater competition in its regional businesses, indicating that growth differed across its operations.

Jumia processed 6.3 million physical goods orders in the second quarter of 2026, an increase of 26%. Marketplace revenue rose 14% to $52 million, while fulfilment expenses climbed 18% to $12.7 million.

The figures cover Jumia’s wider e-commerce business rather than standalone logistics revenue, but show the additional delivery costs associated with higher order volumes.

Cross-Border Freight Costs Raise Pressure on Logistics Operators

Fuel accounted for approximately 55% of freight transport costs along Kenya’s Northern Corridor, according to transporters in October 2026.

CMA CGM introduced a 12% surcharge on affected inland cargo services from August 20, adding to the charges paid by customers using those routes. The surcharge applies to specified services rather than all freight movements across the corridor.

Border clearance times also differ substantially between businesses. TradeMark Africa reported that accredited traders cleared cargo in approximately six hours, compared with 47 hours for non-accredited operators across four East African countries.

Transport companies represented just 4% of participants in the regional accreditation programme, limiting their direct participation in the faster clearance arrangements.

The World Bank estimated in August that approximately 60% of Africa’s trade costs arose from restrictions and inefficiencies within individual countries.

Customs procedures, transport restrictions and differing product standards were among the barriers identified. These costs affect the movement of goods after companies have secured freight and distribution business.

UNCTAD estimated in May 2026 that greater regulatory cooperation could reduce non-tariff trade costs by 30% to 40% in African agriculture and manufacturing. The estimate describes potential savings from policy changes rather than reductions already achieved.

Any financial benefit for logistics operators would depend on reforms being implemented and on how lower transport costs are shared with customers.

Logistics Investors Target Expansion as Operators Face Earnings Pressure

Grindrod reported logistics revenue of R1.27 billion for the first half of 2026, down from R1.38 billion a year earlier.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) fell to R119.6 million from R248.4 million as demand weakened for clearing, forwarding and shipping services.

The decline shows that logistics operators can face falling earnings even as investment continues elsewhere in the industry.

In Côte d’Ivoire, BluePeak Private Capital provided a $16 million loan to Groupe Centaures in May to support transport improvements and fuel efficiency.

A.P. Moller Capital agreed in August to acquire a majority stake in Morocco’s Globex Investissement, extending its interests in African logistics operations. The acquisition remains subject to regulatory approval, and the purchase price has not been disclosed.

Tanzania’s East Africa Foods also raised funding in October to expand its storage and distribution operations.

The company works with more than 28,000 farmers and 10,000 retailers, giving it an established network for sourcing and delivering agricultural products. The financial results of its planned expansion have not been reported.

The investments are directed towards businesses with existing transport operations, distribution networks and commercial customers.

Grindrod’s results provide a different measure of the market: revenue and earnings can decline despite the wider expansion of regional trade.

For investors assessing Africa’s logistics companies, subsequent financial disclosures will establish whether acquisitions, new facilities and distribution contracts are producing higher earnings.