13 December 2019

Will the trucking industry spread its African footprint in 2020?

The South African trucking industry has long been the most advanced in the transport and logistics sector for Southern Africa. Still, just as major trucking role players like FAW manufacturers and distributors have already spread their footprint into the rest of Africa, we believe many others will follow in 2020.

Investors see trucking as a burgeoning industry throughout many parts of Africa, and the new decade will open up many financial opportunities for the key industry role players.

The Financial point of view

In a still relevant PriceWaterhouseCooper (PwC) article released a few years ago, Klaus-Dieter Ruske, PwC Transportation & Logistics Global Leader had this to say: “As Africa has risen to prominence as an investment destination over the past few years, so the role of transportation and logistics has taken on greater significance.”

He went on to say in the same report “Whether moving resources off the continent or bringing goods and services into its burgeoning economies, Africa’s future growth and development will depend on the quality of its infrastructure and the efficiency of its transport networks.”

Did we pull it off?

South Africa had to take the lead here, and their input was so vital. Even though we were ranked the “best logistics performer on the continent,” according to the 2013 Logistics Performance Index, we still today reduce the strength of our infrastructural capabilities with generally low projected annual financial growth.

Some other African countries, however, have shown high projected annual growth, and it is based around this that investors and role players have continued to grow this vital industry throughout the continent. 

Has significant change taken place?

Even back then, Ruske warned that “Smart investing in Africa means investors need to understand key regions and local markets. If they decide to expand in Africa, they will need a solid long-term strategy. The continent needs better transport infrastructure, more connectivity across borders and an improved business environment to reach its potential.”

The FAW example

We believe South Africa, in partnership with neighbouring territories, have greatly achieved this and will continue to do so going into 2020 and the next decade.

FAW is committed to ongoing expansion into the emerging markets of Mozambique, Zambia, Zimbabwe, Malawi, Namibia and Botswana to entrench FAW Vehicle Manufacturers SA (PTY) Ltd as a major distribution hub for trucks and parts on the African subcontinent.

As an industry, we believe we can continue to grow, and FAW will continue to be one of the transport and logistics industry role models in the future. Contact us or visit a dealer near you, whether you are here …or somewhere in Africa, as we keep growing.

Have blessed holidays – and be safe on the roads! We need you all to help us continue to spread our African footprint in 2020 – and beyond!

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