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Foreign direct investment in Africa at all time high

26 June 2015: Although the number of foreign direct investments (FDI) fell by 8.4% in 2014,
capital investment into Africa surged to US$128b, a year-on-year increase of 136%, according
to the recently released EY 2015 Africa Attractiveness Survey and the average investment
increased to US$174.5m per project, up from US$67.8m in 2013.
Charles Brewer, Managing Director of DHL Express Sub-Saharan Africa (SSA), says that this is
positive for the continents outlook, highlighting that FDI in the region is being stimulated by a
number of megadeals, instead of numerous smaller deals.
The perception of investing in Africa has traditionally been rather negative, coupled with the
fear of the unknown. However, in 2014, traditional investors refocused their attention on the
continent, attracted by its strong macroeconomic growth and outlook, improving business
environment, a rising consumer class, abundant natural resources and infrastructure
development. These factors have resulted in global capital investment and job creation hitting
an all-time high during 2014 on the continent.
Brewer says that efficient infrastructure is critical for ensuring the effective functioning of the
continent. As it stands, underdeveloped infrastructure drives up logistics costs, and it is
estimated that supply chain costs are up to nine times more expensive in Africa in comparison
to other regions in the world.
With increased FDI and continued macro-economic growth, I believe that Africa will be an
economic powerhouse in the future. The region is abound with untapped opportunities and has
much scope for growth.
Brewer says that it is for this reason that DHL Express continues to see SSA as one of the most
prominent areas of growth for the business globally, and therefore continue to invest
significantly in the region.
DHL Express continues to invest significantly in SSA in order to Lift The Platform, to expand
our capabilities and cater for continued growth across all markets, with planned investment of
millions of Euros across SSA in 2015. Major projects underway include upgrades to facilities
and shipment handling systems in South Africa, Kenya, Uganda, DRC, Rwanda, Angola,
Zimbabwe and Botswana. Later this year, we will begin planned upgrades in Ghana, Nigeria,
Ethiopia, Benin, Cameroon, Guinea Republic, Gabon, Tanzania, Mauritius and Cote DIvoire.
In addition to facility upgrades, we have a number of vehicle and technology upgrades taking
place this year, along with ongoing employee and SME development programs.
Continued focus and investment in market-leading infrastructure will better connect Africa to the
rest of the world, and create more opportunities for African businesses, allowing them to trade
across borders and with new target markets. DHL Express is committed to not only connecting
others to Africa, one of the worlds largest frontiers for growth, but to making the rest of the
world the next frontier for Africa, concludes Brewer.
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DHL is the leading global brand in the logistics industry. DHLs family of divisions offer an
unrivalled portfolio of logistics services ranging from national and international parcel delivery,
international express, road, air and ocean transport to industrial supply chain management. With
more than 325,000 employees in over 220 countries and territories worldwide, they connect
people and businesses securely and reliably, enabling global trade flows. With specialized
solutions for growth markets and industries including e-Commerce, technology, life science and
healthcare, energy, automotive and retail, a proven commitment to corporate responsibility and
an unrivalled presence in developing markets, DHL is decisively positioned as The logistics
company for the world.
DHL is part of Deutsche Post DHL Group. The Group generated revenues of more than 56
billion euros in 2014. For more information: www.dpdhl.com

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