South Africa Logistics Market Report and Forecast 2024-2032

South Africa Logistics Market Outlook

The South Africa logistics market size reached USD 60.52 billion in 2023. The market is expected to grow at a CAGR of 5.9% between 2024 and 2032, reaching almost USD 101.76 billion by 2032.

Key Takeaways:

• PUDO (Pick Up Drop Off) significantly expanded its network of smart lockers from 300 in 2020 to 1,100 in 2022, reflecting the surging demand and convenience of this service. These smart lockers facilitate the seamless transfer of items weighing up to 20 kg, bridging the gap between city centres and remote regions.

• Furthermore, in 2022, Pargo, a prominent player in smart logistics, established partnerships with over 3,000 local stores, spaza shops, and retail chains, creating an extensive pickup network throughout South Africa.

• The government's focus on the National Development Plan (NDP), which targets a 30% investment-to-GDP ratio, underscores the importance of infrastructure development.

• Meeting the infrastructure requirements outlined in the NDP is estimated to require over ZAR 6 trillion (USD 0.35 trillion) from 2016 to 2040, with energy and transportation representing 72% of this investment.

South Africa logistics market plays a vital role in the global trade landscape, managing the movement of an impressive 1.5 billion tonnes of goods annually and contributing approximately 10% to the nation's GDP while employing over a million people. Ranked 4th on the World Bank's Logistics Performance Index, South Africa's logistics industry predominantly relies on road transport, accounting for over 80% of freight movements, supplemented by rail, air, and sea transport, with major hubs in Gauteng, Durban, and Cape Town.

The South African government is actively addressing challenges faced by the sector: Infrastructure Investment where significant investments in infrastructure projects, including new roads and railways, aim to address transport challenges. Red Tape Reduction that includes government efforts to streamline processes and reduce bureaucratic obstacles create a more conducive environment for logistics businesses. Despite challenges, the South African logistics sector is poised for growth, leveraging opportunities from e-commerce expansion, increased intra-Africa trade, and technological innovation. The sector serves as a critical component of the nation's economy, supporting the second-largest economy on the continent.

In response to the April 2022 floods in KwaZulu-Natal, the province experienced significant growth as companies resumed operations. Cross-border truck loads also increased with Namibia, Lesotho, Botswana showing a 10% rise, and Eswatini recording an 18% increase. The industry is witnessing investments in automation and digitalization to address security concerns, enhance loss prevention, and improve efficiency.

Under the National Infrastructure Plan 2050, South Africa aims to benefit from foreign infrastructure investments in Africa, fostering a more efficient and interconnected logistics system. Additionally, innovative trends like delivery by drone, introduced by startups like Flying Labs, are enhancing supply chain efficiency, especially for medical product deliveries in remote areas while enhancing the South Africa logistics market outlook.

Market Segmentation

South Africa Logistics Market Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments:

Market Breakup by Model Type

• 1 PL

• 2 PL

• 3 PL

• Others

Market Breakup by Transportation Mode

• Roadways

• Seaways

• Railways

• Airways

Market Breakup by End User

• Manufacturing

• Consumer Goods and Retail

• Food and Beverages

• IT Hardware and Telecom

• Healthcare

• Chemicals

• Construction

• Automotive

• Oil and Gas

• Others

Competitive Landscape

Key players in the logistics market in South Africa through the utilisation of technological advancements and government initiatives, offer services to support the end users.

• Transnet SOC Ltd.

• Bolloré Logistics

• FedEx Corporation

• United Parcel Service, Inc.

• Schenker AG

• C.H. Robinson Worldwide Inc.

• Deutsche Post AG

• DSV A/S

• CMA CGM Group (CEVA Logistics SA)

• Kuehne + Nagel International AG 

• Expeditors International of Washington, Inc. 

• Kintetsu World Express Inc.

• A.P. Møller – Mærsk A/S 

• Others

Key Highlights of the Report