This article was originally published in the May-June 2025 issue of Logistics Update Africa. As global momentum builds towards climate-resilient economies, Africa is at a crossroads, where bold and sustainable logistics strategies can boost trade, stimulate inclusive growth and protect the planet. The continent’s logistics sector has long been hampered by a lack of infrastructure and inefficiency, but now has an opportunity to leapfrog to a greener and more resilient system that meets the challenges of both development and climate change.
Robert Lisinge, Director of Technology, Innovation, Connectivity and Infrastructure Development at the United Nations Economic Commission for Africa (UNECA), said: “Logistics is essential for trade, wealth creation and moving goods across countries, both within Africa and internationally. “We are working with the United Nations to consider sustainability from three perspectives: social, economic and environmental. These aspects are important for logistics. Logistics also plays an important role in creating jobs and employing people.” The trucking, rail, and aviation industries contribute significantly to the country’s GDP. ”
DHL Express SSA CEO Hennie Heymans said: “Africa is currently considered the world’s least traveled region, with transport costs contributing as much as 40% to the final price of goods. This means moving goods in Africa is 3.5 times more expensive than on bulk global routes due to limited economies of scale at ports.”
When it comes to the most impactful interventions Africa can make today, the strategy of investing in green transport corridors may stand out. These corridors will leverage low-emission vehicles, multimodal connectivity and smart infrastructure to not only reduce carbon emissions but also open up the potential for intra-African trade under the African Continental Free Trade Area (AfCFTA).
“We are working with the United Nations to consider sustainability from three perspectives: social, economic and environmental.”
Robert Lisinge, TICID, UNECA
consistent with the big picture
Sustainable logistics is not a separate goal. It is deeply connected to Africa’s climate resilience, energy transition and socio-economic transformation goals.
Lisinge added: “A shift towards green logistics is key, especially when it comes to fuels. Countries like South Africa are considering the use of hydrogen for transport, and Ethiopia has banned the import of fossil fuel vehicles and is promoting electric trucks.”
Green logistics can reduce transportation costs, improve food security through improved cold chains, and stimulate investment in off-grid renewable energy in rural areas. This synergy is particularly evident in national development plans that integrate transport decarbonization with rural access, health outcomes and digital innovation.
Mr Heymans said: “From a social perspective, communities should focus on green infrastructure immediately. There is an opportunity here for communities to move directly to renewable solutions, such as the use of solar energy, and the benefits can be immediate.”
Africa’s path to sustainable logistics does not need to imitate the highly centralized, capital-intensive and technology-driven West, but can build its own models rooted in local needs and innovation.
Fiscal and policy initiatives
Financing and policy alignment remain the sector’s Achilles heel. Long-term concessional funding is scarce and regulation often lags the pace of innovation.
Regarding financing, Lisinge said, “Infrastructure financing in Africa is difficult, with an estimated annual gap of $130 billion to $170 billion. Soft infrastructure, such as uniform axle load limits across countries, is needed to streamline logistics.”
Blended financial structures, tax incentives for electric vehicles and cold-chain technology, and targeted infrastructure bonds could provide momentum.
Mr Heymans said: “The use of mobilization instruments and mixed finance solutions is critical in the pursuit of sustainable development. These approaches are essential to filling financing gaps in sustainable projects, especially in areas with limited access to capital.”
“Sustainable logistics is about building systems that address multiple development challenges simultaneously, not just transport efficiency.”
Henny Haymans, DHL Express SSA
Closing the cost-effectiveness gap
Although the transition to green logistics involves upfront costs such as new vehicles, infrastructure, and training, the long-term benefits are undeniable.
“Transitioning to green technologies such as electric vehicles has an initial cost. Governments can reduce this by providing incentives such as import tax breaks for electric vehicles. Operating costs will decrease over time because the price of electricity is lower than fossil fuels. Technological advances generally reduce costs over time, and as adoption increases, infrastructure will naturally improve,” Lisinge said. Reduced dependence on fuel, reduced operating costs, improved health outcomes and increased resilience to climate change all create net positives. Still, small businesses and rural areas need tailored support, including EV microleasing, digital training, and access to shared logistics platforms.
“Sustainable logistics is not just about transport efficiency, but also about creating systems that address multiple development challenges simultaneously,” said Heymans.
From electrifying regional corridors to digitizing supply chains to introducing low-emission vehicles, Africa is not starting from scratch and is already on the move. The road ahead is not without hurdles, but with the right combination of financing, policy collaboration and grassroots innovation, Africa can unlock the true potential of its logistics sector, create jobs, reduce emissions and drive inclusive prosperity for future generations.
This article was originally published in the May-June 2025 issue of Logistics Update Africa.
