This article was originally published in the May-June 2025 Logistics Update Africa issue. Africa is at a crossroads as global momentum is built towards a climate-resistant economy. Long hampered by infrastructure deficits and inefficiencies, the logistics sector on the continent has the opportunity to splash into greener, more resilient systems that serve both development and climate agendas.
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“Africa is currently considered the least connected region in the world, with transportation costs contributing to 40% of the final price of the goods,” said Hennie Heymans, CEO of DHL Express SSA.
One strategy may stand out when it comes to the most impactful interventions Africa can take today. Investment in Green Transport Corridors. These corridors are equipped with low-emission vehicles, multi-modal connectivity and smart infrastructure that not only reduce carbon emissions, but also unlock intra-African trade under the African Continental Free Trade Area (AFCFTA).
“We will work with the United Nations to consider sustainability from three perspectives: social, economic and environmental perspectives.”
Robert Lindsey, Tissid, UNECA
Matches the overall picture
Sustainable logistics is not an independent ambition. It intersects deeply with Africa's climate resilience, energy transition and socioeconomic change goals.
Lisinge adds, “The transition to green logistics is particularly important from a fuel perspective. Countries like South Africa are considering using hydrogen, while Ethiopia has banned the import of fossil fuel vehicles and promoted electric trucks.
Green logistics can reduce freight costs, improve food security through better cold chains, and stimulate renewable energy investments off the grid in rural areas. This synergy is particularly prominent in national development plans that integrate transport decarburization with rural access, health outcomes and digital innovation.
“From a social perspective, communities should quickly look at green infrastructure. Here we have the opportunity to move directly to renewable solutions, such as using solar energy,” Hyman said.
Africa's path to sustainable logistics doesn't have to mimic the West – highly centralized, capital-intensive, technology-driven – can build unique models rooted in local needs and innovation.
Finance and policy initiatives
Funding and policy alignment remains in the heels of Achilles in the sector. Long-term concessionary finances are lacking, and regulations often lag behind the pace of innovation.
Speaking about fundraising, Lisinge said: “Funding for infrastructure in Africa is difficult, with an estimated annual gap of between $130 and $170 billion. Soft infrastructure is needed to streamline logistics, including uniform axle load limits between countries.”
Blend finance structures, tax incentives for electric vehicles and cold chain technologies, and targeted infrastructure bonds could unleash momentum.
Heymans stated, “The use of mobilizing equipment and the use of fusion finance solutions are extremely important in pursuing sustainable development. These approaches are essential to filling the gap in funding for sustainable projects, especially in regions with limited capital access.”
“Sustainable logistics is about creating systems that address not only transportation efficiency, but also multiple developmental challenges at the same time.”
Hennie Heymans, DHL Express SSA
Filling the cost-effectiveness gap
The transition to green logistics includes leading fleets, infrastructure and training, but the long-term benefits cannot be denied.
“The initial costs for the transition to green technology such as electric vehicles are high. Governments can reduce this by providing incentives such as tax credits on imports of electric vehicles. Over time, operating costs will drop as electricity prices drop. The results, and the increased resilience to climate shocks, all create net positivity. Still, small and medium-sized businesses and rural communities need coordinated support, including EV microleases, digital training, and access to shared logistics platforms.
“Sustainable logistics is creating systems that not only deal with transportation efficiency, but also with multiple developmental challenges at the same time,” Heymans said.
From electrified regional corridors to digitalising supply chains and deploying low-emission vehicles, Africa has not started from scratch. It's already moving. While the road ahead is not without hurdles, the right combination of funding, policy adjustments and grassroots innovations will allow Africa to unlock the true potential of its logistics sector. Create jobs, reduce emissions, and promote inclusive prosperity for the coming generation.
This article was originally published in the Logistics Update Africa from May to June 2025.
