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DHL sub-Saharan chief sees Africa as the last big growth frontier

AS Africa is reckoned to be last frontier of global economic development, Germany's DHL is preparing to put in extra pioneering effort in coming years to contribute to the continent's huge potential.

"The opportunities are there - it's all about having a long-term focus on the region," said DHL's sub-Saharan chief Hennie Heymans in a press release. "DHL Express will continue to invest in the region with the ultimate goal of seeing Africa thriving," she said.

While the latest World Bank figures show the African economy growing at 3.4 per cent in 2015, its lowest since 2009 and well down on 4.6-4.9 per cent in 2013-14, the express carrier's Ms Heymans sees potential.

DHL said it believes that the African continent will continue to grow as it has over the past decade due to the vast number of unexploited opportunities.

"The drop in GDP growth for the region over the past year shouldn't deter investors. Africa will continue to thrive, albeit, more slowly," she said.

As in the rest of the world - where, incidentally, reported growth was only 2.4 per cent - 2015 was a tough year economically for Africa.

Falling commodity demand, declining currencies, political instability and drought all contributed to the challenges. But there are growth opportunities in 2016 for those willing to seek them out, Ms Heymans said.

This is supported by the latest World Bank's Africa's Pulse author and acting chief economist for the region, Punam Chuhan-Pole, who says: "The good news is that domestic demand generated by consumption, investment, and government spending will nudge economic growth upwards to 4.4 per cent in 2016, and to 4.8 per cent in 2017."

Specific regions also have higher growth prospects, the report adds. Cote d'Ivoire, Ethiopia, Mozambique, Rwanda and Tanzania at seven per cent in 2015-17 thanks to large-scale investment into energy and transport projects, consumer spending and resources.

Ms Heymans said that DHL's experience is that each country offers unique growth opportunities. "For example, in Ethiopia, the telecommunications sector is a large contributor to GDP."

It was reported that the country had 40 million mobile phone subscribers and 10 million internet connections in 2015.

However with a population of over 90 million, the sector has capacity to double its contribution to GDP.

"In Mozambique, the retail sector is offering huge opportunities. With a growing middle class and shopping culture, coupled with a limited availability of common products, this sector offers opportunities for both small and large businesses," she said.

Rwanda's ambition to become a regional communications hub has boosted demand for communication devices and ICT equipment. Similarly, the country's booming healthcare sector has led to an influx of medical supplies.

Ms Heymans adds that the picture would be even healthier were it not for underdeveloped infrastructure and bureaucracy in some countries.

Madagascar's coal, nickel and limonite mines, for example, could be a lucrative opportunity, but "several legislative reforms are still needed", she said.