DHL expects stable growth in Africa's air freight sector in 2013

AFRICA should enjoy stable growth in air cargo this year, driven by oil and energy sector as well as rising consumer spending and economic activity, according to DHL Sub-Sahara Africa chief Charles Brewer.

One fear is the threat of labour disputes, such as a repeat of the major strike last year at DHL that crippled operations, he said, adding that the company continued service throughout the strike, but it the stoppage hurt business.

"We will see solid single-digit volume growth in the short term, led by the oil, energy and mining sectors and solid double-digit growth in the medium term as e-commerce grows and manufacturing takes root," said Mr Brewer.

"Within the Sub-Saharan region, routes between Nigeria, Cote d'Ivoire, Ghana, Kenya, South Africa, Tanzania, Mozambique, Ethiopia and Uganda will grow as a result of major investment in those markets," he said.

Mr Brewer said company data shows that South Africa's main trading partner within Africa will be Nigeria in 2013 due to the high volume of technology and electronic goods shipped into that country.

From a global perspective, Sub-Saharan Africa's fastest growing partner will be the Asia Pacific region, which has recently instituted new ties with Africa as it looks to secure sources of raw materials to fuel expansion.

According to the International Air Transport Association (IATA), global cargo volumes contracted by two per cent in 2012 due to low business confidence. However, the company's express business in Sub-Saharan Africa recorded single-digit growth last year, despite high fuel prices and slowing world economy, and the company is therefore positive about 2013 going forwards.

South Africa's current customs laws could be a challenge for the local industry in 2013 due to the significant obstacle of the informal threshold of ZAR500 (US$56) for duty-free imports, which continues to hamper e-commerce industry, slow clearances and prevents the country from becoming more globally connected.