The importance of emerging markets in the Deutsche Post DHL Group’s 2020 strategy – titled Strategy 2020: Focus.Connect.Grow. – and particularly in the encouraging development of sub-Saharan Africa was emphasised last week when Frank Appel, CEO of Deutsche Post DHL Group, visited South Africa and Nigeria.
During his stay in South Africa and Nigeria, Appel met with employees and customers and visited several logistics facilities. Affirming the Group’s focus on emerging markets, Appel says: “Today, emerging market revenues contribute over 20 percent to Deutsche Post DHL Group’s revenues but by 2020, the Group expects this figure to climb to 30 percent. Therefore, we will continue to concentrate on organic growth by investing into promising present and future markets.”
He added that DHL already has a strong footprint in Africa “but we see some excellent opportunities to further increase our presence in the sub-Saharan region. South Africa’s exceptional geographic location as the gateway to Africa, and Nigeria’s growing gross domestic product (GDP) and diversifying markets are only two of the many important indicators for this.”
DHL continues to significantly invest in sub-Saharan Africa. DHL Express, which operates across 51 countries and territories in the region, has a planned investment in excess of EUE-17 million (R254,4-million) in 2015. Major projects underway include upgrades to facilities and shipment handling systems throughout the region.
In October 2014, DHL announced investments totalling EUR-30.5 million (R456.4- million) in South Africa by both its Supply Chain (EUR 14.5 million investment) (R217-million) and Global Forwarding divisions (EUR 16 million investment) (R239.4-million). These commitments signal the Group’s long-term growth plans for the region as they bring state-of-the-art infrastructure, IT systems and world-class services to support businesses operating in Africa.
For DHL Global Forwarding, the leading provider of air, ocean and road freight services, the R239.4million facility, located at the Plumbago Business Park, boasts 12 000 square meters of warehouse space and 5 500 square meters of office space. A TAPA ‘A’ certified warehouse, the new premises are a world-class facility in South Africa, strengthening the country’s growth capabilities as the hub for distribution into the region.
With a R217-million investment, DHL Supply Chain’s 25 000m² multi-user warehouse facility caters to its technology client portfolio, as well as some key fast-moving consumer goods (FMCG) clients.
“Staying close to the market and being responsive to customer needs are DHL’s fundamental principles. We have established world-class facilities in sub-Saharan Africa to support our global network and I am delighted to witness first-hand the sustained efforts of our employees to deliver best-in-class services. We are committed to sub-Saharan Africa and will continue to build on our successful four-decade legacy in the region,” says Appel.