DHL Group says emerging markets in Africa should contribute 30% to revenue in 2020
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. The company that currently operates across 51 countries and territories in the region has therefore hinted on efforts to get to the mark.
To fulfill the 30% revenue contribution to the company, DHL has planned investment in excess of EUR 17 million in 2015 with major projects underway including upgrades to facilities and shipment handling systems throughout the region.
In October 2014, DHL already announced investments totaling EUR 30.5 million in South Africa, by both its Supply Chain (EUR 14.5 million investment) and Global Forwarding divisions (EUR 16 million investment). 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.
“Therefore, we will continue to concentrate on organic growth by investing into promising present and future markets. 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.” Said Frank Appel, Chief Executive Officer of Deutsche Post DHL during his visit to South Africa.
For DHL Global Forwarding, the leading provider of air, ocean and road freight services, the EUR 16 million 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 EUR 14.5 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.
“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.” Said Mr. Appel