Why Better Logistics Could Unlock Africa’s Next Growth Wave

The African Continental Free Trade Area (AfCFTA) has created a foundation for a more connected African market, but for many businesses, especially small and medium enterprises, the biggest challenge remains turning that opportunity into reality.

While trade agreements can open access to new markets, the ability to move goods efficiently across borders remains one of the biggest factors determining whether businesses can scale beyond their home countries.

South Africa’s commercial sector is closely tied to this challenge. From manufacturers and agricultural exporters to online businesses looking to reach customers across the continent, companies continue to face operational barriers including customs complexity, documentation requirements, border delays and rising logistics costs.

Nelson Teixeira, Managing Director of Operations for Sub-Saharan Africa at FedEx, argues that Africa’s trade ambitions will depend not only on policy progress but on creating systems that allow businesses to move products more predictably.

Nelson Teixeira, Managing Director of Operations for Sub-Saharan Africa at FedEx

“We’ve made important progress at a policy level with initiatives like AfCFTA, but the benefits are often diluted by operational friction,” Teixeira says. He notes that smaller businesses often face the greatest challenges, as they may not have dedicated resources to manage complex compliance and cross-border requirements.

South Africa sits at the centre of several important regional trade routes, including the North-South Corridor, which connects Southern Africa with markets further north. For businesses looking to expand, these connections present significant opportunities, but only if goods can move efficiently.

The transport and logistics sector plays a critical role in supporting economic activity across the continent. South Africa’s minibus taxi industry alone accounts for a significant share of public transport journeys, while freight networks keep essential goods moving between producers, suppliers and consumers.

However, trade growth is not only dependent on roads and infrastructure. Increasingly, digital systems, customs technology and supply chain visibility are becoming equally important.

Teixeira says logistics providers are taking on a larger role in helping businesses navigate international trade, from preparing documentation and managing shipments to improving visibility throughout the delivery process.

“The customer experience doesn’t end when someone clicks ‘buy’,” he explains. “It extends all the way to delivery.”

This has become particularly important as e-commerce continues to grow. Customers now expect faster delivery, clearer tracking and more reliable service, even when purchases cross international borders.

For large corporations, navigating international trade often comes with dedicated teams and specialist expertise. Smaller businesses, however, can find the process significantly more challenging.

According to Teixeira, simplifying trade processes and improving access to support will be essential if more SMEs are to benefit from Africa’s expanding market opportunities.

“Large organisations can invest heavily in trade compliance capabilities,” he says. “Smaller businesses often don’t have that luxury. That’s why simplifying processes and providing the right kind of support is so important.”

Greater alignment between customs authorities, regulators and private sector partners could help reduce unnecessary delays and make cross-border trade more accessible.

Across Africa, governments are increasingly investing in digital customs platforms and automated systems designed to improve efficiency, strengthen compliance and reduce bottlenecks at border points.

While AfCFTA represents a major step towards increasing intra-African trade, the success of the agreement will ultimately depend on the systems supporting it.

For businesses, easier access to regional markets could create new opportunities for growth, but only if the movement of goods becomes simpler, faster and more predictable.

“The opportunity for South African businesses is enormous,” Teixeira says. “The focus now should be on making trade easier to navigate so that more businesses can take advantage of the opportunities that exist, both within Africa and beyond.”

As Africa continues moving towards greater economic integration, logistics is becoming more than a method of transporting goods. It is emerging as one of the key foundations for how businesses expand, compete and participate in the continent’s future growth.