Logistics - Africa Regions

Logistics Africa Region continues to expand and leverage its footprint in selected African countries and is strengthening its integrated logistics capabilities to penetrate deeper into its clients’ and principals’ supply chains. Its strategic intent is to become the market leader in providing brand owners of consumer and pharmaceuticals products access to the growing consumer market on the continent, offering a fully integrated, demand-driven route-to-market for principals.

Within its existing focus on pharmaceuticals products in the Rest of Africa, the division is actively pursuing opportunities to extend its services to international donor agencies active on the continent. Opportunities for growth in other industries will be explored where the division can leverage its existing capabilities and capacity, in line with its asset-light approach.

It is extending its focus from traditional road transport to include cross-border and international logistics services and warehousing operations. Ongoing cash, working capital and foreign exchange risk management is critical to ensuring appropriate returns from this region, particularly in light of liquidity shortages and weakening currencies in some sub-Saharan Africa countries.

Achieving Logistics Africa’s aspiration to equal revenue of its Africa Region operations to that of South Africa by 2020 will require further acquisitions and aggressive organic growth, particularly in the East and West Africa regions. Again, focused capital allocation and stringent cash and working capital management are essential to ensuring appropriate returns and service in these developing regions.

REVENUE 2016
R million
2015
R million
%
change
Africa Regions 11 853 9 975 19

OPERATING PROFIT 2016
R million
2015
R million
%
change
Africa Regions 780 635 23

OPERATING MARGIN 2016
%
2015
%
Africa Regions 6,6 6,4