Amid the rising trade flows, India and Africa have expressed a strong commitment to reduce trade barriers and encourage bilateral trade to further fuel growth in both markets. DHL Global Forwarding shared these insights at the World Economic Forum held in New Delhi on 15 and 16 November.
“Logistics is a powerful economic enabler and forms one of the fundamental building blocks of external and internal trade,” said Amadou Diallo, Chief Executive Officer, Africa and South Asia Pacific, DHL Global Forwarding. “Africa is a key emerging market, with air cargo and ocean freight volumes between India and Africa expected to grow 9.8% and 9.2% CAGR from 2009 – 2015 respectively. We are optimistic of DHL’s growth potential in the India-Africa trade lane and given our extensive global network capabilities and sound expertise, we see tremendous business opportunities and to ensure businesses have access to world-class logistics operations across Africa.”
Oil and gas products continue to fuel growth in Indo-Africa trade
In recent years, India is emerging as an important global investor in overseas markets, including Africa. From April 1996 to December 2007, India has invested US$5.7 billion in Africa. India’s major investments in Africa have taken place in the oil and gas, telecommunications, transport and information technology (IT) sectors.
Since 2004-2005, petroleum products have emerged as the largest items in India’s exports to Africa, accounting for 22.2% of India’s total exports to Africa from 2008-2009. This trend is mirrored in India’s imports from Africa – crude petroleum dominates as the major item imported from Africa, accounting for 58.6% of India’s total imports from Africa from 2008-2009.
“Having established our expertise in several key sectors, including the oil and gas, telecommunications and IT sectors, DHL is well-positioned to leverage our capabilities and know-how in this area and help businesses extend their footprint in both expansive markets. In the last few years, we have opened dedicated operations in all important African economies and DHL’s leadership in logistics and supply chain solutions ensures that we are the harbinger of economic growth in the region,” Amadou Diallo added.
As a global trade facilitator, DHL Global Forwarding has continually invested in India. In 2009, DHL Global Forwarding announced an investment of US$15 million in three Life Science Competence Centers strategically located in Mumbai, Hyderabad and Singapore, to bolster DHL’s logistics capabilities for the Life Science industry in the region. With a USD10 million investment to establish a logistics and warehousing facility in the upcoming Free Trade Warehousing Zone (FTWZ) in Tamil Nadu, the company will also be the first global logistics company to operate a facility within the FTWZ that offers customers the benefits of a duty free zone with high quality infrastructure.
Besides establishing sound infrastructure, DHL Global Forwarding has developed a comprehensive suite of products and services to enable African and Indian companies to better manage their product flows in the supply chain. In addition, the company has allocated significant resources to facilitate growth in the India-Africa trade lane. It has set up India Desks in ten African countries to help businesses there, with plans to establish additional Desks in the next year.