Africa Cross Border Road Freight Transport Market Size (2024 - 2029)

The African cross-border freight transport market is poised for growth, driven by trade agreements and the rising influence of e-commerce in the region. This expansion is particularly evident in sectors such as automotive and distributive trade, which are increasingly reliant on enhanced road freight services for efficient and sustainable goods transportation. The COVID-19 pandemic significantly impacted cross-border value chains and transport services, creating both challenges and opportunities across various sectors. While e-retail logistics experienced substantial growth, other sectors like automotive and construction faced a decline in demand, highlighting the diverse effects of the pandemic on the market landscape.

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Market Size of Africa Cross Border Road Freight Transport Industry

Africa Cross Border Road Freight Transport Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2020 - 2022
CAGR 4.50 %
Market Concentration Low

Major Players

Africa Cross Border Road Freight Transport Market Major Players

*Disclaimer: Major Players sorted in no particular order

Africa Cross Border Road Freight Transport Market Analysis

The African cross-border freight transport market is expected to exhibit a CAGR of about 4.5% during the forecast period. The growth in the sector is facilitated by the multiple trade agreements of the African countries and the increasing penetration of e-commerce in the region. Various sectors like automotive and distributive trade are increasingly demanding the development of road freight services in order to facilitate seamless, fast, cheap, and sustainable transportation of goods within the countries and in the region.

The preventive measures taken during the COVID-19 pandemic had a severe effect on the cross-border value chains and trade and transport services. In the case of fruit exporters, many trucked their goods cross-country to Port Elizabeth and, in some cases, as far as Durban - 1,635 km away. The pandemic created opportunities for some and challenges for other sectors in the region. On the one hand, e-retail logistics, on-demand, and last-mile delivery sectors were among the highest growth sectors as a result of the coronavirus crisis. On the other hand, the automotive, oil and petroleum distribution, construction, and steel production sectors have seen a drastic fall in demand in the region.

Africa Cross Border Road Freight Transport Industry Segmentation

Cross-border road freight refers to transportation activities, infrastructures, and flows that support the passage of freight across an international border through roads as its mode of transportation. The report provides a comprehensive background analysis of the cross-border road freight market, covering the current market trends, restraints, technological updates, and detailed information on various segments and the competitive landscape of the industry. The impact of COVID-19 has also been incorporated and considered during the study.

The African Cross Border Road Freight Transport Market is segmented by End User (Manufacturing and Automotive, Oil, Gas and Chemicals, Agriculture, Fishing, and Forestry, Construction, Distributive Trade, Pharmaceutical and Healthcare, and Other End Users (Telecommunications, Food, and Beverage, etc.). The report offers market size and forecasts for the African Cross Border Road Freight Transport Market in value (USD) for all the above segments.

By End User
Manufacturing and Automotive
Oil, Gas and Chemicals
Agriculture
Fishing, and Forestry
Construction
Distributive Trade
Pharmaceutical and Healthcare
Other End Users (Telecommunications, Food, and Beverage, etc.)
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Africa Cross Border Road Freight Transport Market Size Summary

The African cross-border road freight transport market is poised for growth, driven by trade agreements and the rise of e-commerce in the region. The demand for efficient road freight services is increasing, particularly in sectors like automotive and distributive trade, which seek to enhance the speed, cost-effectiveness, and sustainability of goods transportation. The COVID-19 pandemic had a mixed impact, disrupting some sectors while boosting others such as e-retail logistics. The African Continental Free Trade Area (AfCFTA) is a significant development, aiming to reduce tariffs and facilitate trade among member countries, thereby reshaping regional markets and economies. This agreement prioritizes sectors like transport and tourism, promising immediate benefits to industries such as automotive and agro-processing.

Investment in road infrastructure is crucial for the growth of the cross-border freight transport market in Africa. Countries like Nigeria, Kenya, and South Africa are enhancing their road networks, incorporating ICT to improve logistics efficiency. Projects like the Nairobi Southern Bypass and the Great North Trans-African Highway are set to streamline transport across borders. The market is characterized by fragmentation, with numerous domestic and international players like DSV and Cargo Carriers competing. However, challenges such as driver shortages and cargo theft persist. Recent mergers and acquisitions, such as Kuehne+Nagel's acquisition of Morgan Cargo, highlight ongoing consolidation and strategic growth efforts in the sector.

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Africa Cross Border Road Freight Transport Market Size - Table of Contents

  1. 1. MARKET DYNAMICS AND INSIGHTS

    1. 1.1 Current Market Scenario

    2. 1.2 Market Dynamics

      1. 1.2.1 Drivers

      2. 1.2.2 Restraints

      3. 1.2.3 Opportunities

    3. 1.3 Value Chain/Supply Chain Analysis

    4. 1.4 Government Regulations, Trade Agreements, and Initiatives

    5. 1.5 Technological Developments in the Logistics Sector

    6. 1.6 Insights into the Transportation Costs, Transit Times, and Costs Associated with Border Crossing in Key Routes

    7. 1.7 Insights into Cross Border E-commerce (B2C and B2C)

    8. 1.8 Insights into Rules and Regulations at Key Border Crossing Points (Customs, Licensing, Duties and Taxes, etc.)

    9. 1.9 Insights into Key Transport Corridors

    10. 1.10 Insights into Manufacturing Hubs and Special Economic Zones (SEZs) in Key Countries

    11. 1.11 Spotlight on Cross Border Freight Transport (LTL, FTL, and CEP)

    12. 1.12 Industry Attractiveness - Porter's Five Forces Analysis

    13. 1.13 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By End User

      1. 2.1.1 Manufacturing and Automotive

      2. 2.1.2 Oil, Gas and Chemicals

      3. 2.1.3 Agriculture

      4. 2.1.4 Fishing, and Forestry

      5. 2.1.5 Construction

      6. 2.1.6 Distributive Trade

      7. 2.1.7 Pharmaceutical and Healthcare

      8. 2.1.8 Other End Users (Telecommunications, Food, and Beverage, etc.)

Africa Cross Border Road Freight Transport Market Size FAQs

The Africa Cross Border Road Freight Transport Market is projected to register a CAGR of greater than 4.5% during the forecast period (2024-2029)

DSV South Africa (Pty) Ltd, DHL Freight Forwarding, Unitrans Supply Chain Solutions (Pty) Ltd, CEVA Logistics and Cargo Carriers (Pty) Ltd are the major companies operating in the Africa Cross Border Road Freight Transport Market.

Africa Cross Border Road Freight Transport Market Report Snapshots

Africa Cross Border Road Freight Transport Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)