World Economy

African Logistics Boom Draws Major Investment Despite Carrier Cost Pressures

DHL Group is investing €300 million across Africa through 2030, betting the continent will emerge as a global trade hub by mid-decade. The commitment underscores confidence in regional supply chain expansion even as carriers face mounting headwinds. Dedicated trucking operations are struggling with higher driver expenses, medical claims, and insurance premiums. Some operations reported 22 percent year-over-year drops in operating income during the third quarter. Fuel costs remain elevated despite recent moderation, prompting logistics providers to implement hedging strategies and route optimization. Peak season surcharges are expected to pressure shippers in the fourth quarter, though easing diesel prices and renewed discounting activity offer some relief. South African business sentiment has stabilized, supported by commodity prices and recovering tourism and automotive sectors.