Safe and secure: How new warehouses will support African supply chains
Supply chain and logistics operations in Africa are beset by difficulties including a lack of infrastructure and suitable storage facilities. One logistics provider, Agility Africa, hopes to tackle this by establishing a chain of high-quality warehouses throughout the continent
Operating in Africa can be a big challenge, and the establishment of a new supply chain there even more so. The acquisition or construction of decent storage facilities, the recruitment of suitable staff and the need to contend with local laws are all potential barriers to setting up business. However, Agility Africa, a division of the Kuwait-based parent company which operates in more than 100 countries, aims to change this by “de-risking” the process and providing a series of well-managed logistics facilities across the continent.
Geoffrey White, CEO of Agility Africa, told Automotive Logistics that the company has a “build it and they will come” strategy regarding setting up warehouses in key ports on the continent. “There is a risk perception regarding Africa that is incredibly high,” he says. “This is a big disincentive for a lot of people to come.”
In implementing this strategy, the company is committing itself to major investments: at least $200m on each park. These start with a first phase covering around 25,000 sq.m, with more space of similar size added as demand grows.