Agility’s warehouse parks makes doing business easier and less risky and therefore attracts new multinational companies to come to Mozambique
MAPUTO, Mozambique, May 13, 2019 – “Agility is a long-term sustainable investor and is a strong advocate of the future of Mozambique,” says Deanne De Vries, Senior Vice President for Agility Africa, a global warehousing and logistics multinational rapidly expanding across the continent.
Her comments come ahead of the second annual bilingual MozamReal Property Forum taking place on 5 June in Maputo, where De Vries will present a detailed view, and site tour, of the warehousing giant’s first phase of 32,000 square meters of A-grade warehousing space suitable for storage, distribution, packaging, processing and light industrial work.
De Vries’ robust views are shared by the host of MozamReal, API Events’ Kfir Rusin. As a pan African business to business networking conference, API Events’ forums are synonymous for driving investment and formalizing the investment opportunity in local markets.
As he comments, “For investors looking to position themselves for growth in one of the continent’s biggest future economies, Mozambique provides a strategic long-term growth opportunity with exceptional opportunities in hubs from Maputo to Pemba, Tete, Nampula and more.”
With conservative growth forecasts predicting a doubling of Mozambique’s GDP in the next four to five years, the global logistics giant’s future growth strategy is increasingly geared towards the continent and in lynchpin markets such as Mozambique.
“Agility is building a pan-African network of international standard warehouse parks that will provide the warehousing infrastructure for companies to access the burgeoning African market supporting imports and exports and enabling the development of trade internationally, domestically and regionally,” says De Vries.
Driven by population growth, technology adoption and 5% average GDP growth across the continent, the need for warehouse parks are a product of the changing macroeconomic trends of “Small & Medium Enterprises (SME) and ecommerce fulfillment” in Africa, says De Vries.
As she explains, “Ecommerce can require four times more warehousing in markets than traditional logistics pathways.”
Owning more than 2.2 million square meters of logistics space worldwide and with over 60,000 global clients, Agility’s warehouse park on the Maputo Ring Road is set to transform and improve the ease of doing business in the economy.
“Agility’s warehouse parks makes doing business easier and less risky and therefore attracts new multinational companies to come to Mozambique which in turn drives further capital investment, creating more jobs and stimulating the economy.”
While a core-focus for the group is on providing a de-risked investment model into new markets for cross sector client base, their strategy is evidence of a nuanced and maturing Africa strategy says Rusin.
“Agility has been in Mozambique for four years and it’s refreshing to see a global giant enter the market with a tailored business plan that caters to both large scale investors and SMEs.”
As De Vries comments, “Agility’s warehouse parks reduce capital costs, shorten lead times and de-risk market entry for both MNCs and SMEs.”
She adds that, “Our support program for local Mozambican SME companies enables them to lease our international standard warehouse facilities by paying only three-months security deposit. SME’s don’t require a strong balance sheet or financial guarantees so are able to access quality warehousing for expanding their business without having to raise expensive capital.”
As one of several international companies, including Heineken and CDM, to have set up shop in the Marracuene area of Maputo, Agility Africa’s strategy is long-term and bullish.
Says De Vries, “When we identify locations, we constantly review how and where major cities are expanding and where the center of business will be in 5 or 10 years.”
As one of the major sponsors of MozamReal 2019, delegates will have the opportunity to accompany De Vries on an investor site-tour of the first phase of the development, which will, in time, cover the equivalent of over 24 football pitches.
Says De Vries, “Our partnership with MozamReal will help us get the word out to even more companies and individuals about our warehouse park but also about the opportunities in Mozambique for the (industrial) real estate sector – a very nascent sector in Mozambique’s real estate arena.”
Rusin believes that Agility’s local and global positioning in the market is effective and generating local excitement in a sector that is recovering rapidly.
“Our 2019 theme is Positioning for Growth, and we believe that Agility are just the first movers in a market that will rapidly transform over the next couple of years.”
Air cargo stakeholders are under pressure adapting to the new normal
Challenged by a lack of capacity and rising prices, air cargo stakeholders are adapting to the new normal in a bid to keep supply chains operational and economies running.
This is according to industry stakeholders who were participating in a webinar on the state of Africa’s air cargo sector amid the COVID-19 pandemic. The webinar, hosted by Messe Muenchen South Africa, the organisers of air cargo Africa Exhibition and Conference assessed the role and challenges of the air cargo sector as restrictions on movement play havoc with operations at airports, airlines, freight forwarders and supply chains.
With many countries on lockdown or restricting movement, cargo capacity has been slashed, creating a challenge for a sector seeking to fulfil its critical role in transporting essential medical supplies and keep import and export goods moving. Panellists in the webinar said stakeholders had to adapt to the new normal, as restrictions would likely continue for months to come. “The current situation requires agility and innovation,” noted Moderator Reji John of STAT Media Group.
Fitsum Abadi, Managing Director of Ethiopian Cargo & Logistics said the airline had adapted quickly, pivoting to a cargo-only carrier and converting many of its passenger airlines to carry cargo. “I never expected to see cargo reclining on seats, but this is in fact what happened at first. We have now adapted by removing the seats of several passenger aircraft to repurpose them for freight, as well as optimising capacity, making Addis Ababa and Lome key regional hubs, and deploying narrow body aircraft to serve regional routes to meet demand.”
Stakeholders reported an increase of chartered flights carrying repatriated citizens, medical supplies or humanitarian aid, which often arrived with little notice. Due to a lack of capacity, costs on scheduled cargo flights, was challenging for producers of perishables for export – such as flowers.
Fabio Weiss, VP, Head of Air Freight Middle East & Africa at DHL Global Forwarding MEA said stakeholders were working together to adapt to the changed environment. “Capacity has declined, but demand is still there. There has been an imbalance of volumes coming into Africa that allow exports going out, and we need to get the mix right for the necessary yields and revenues. The current situation is not sustainable for anyone in the long term. However, we have been working with airports, airlines and customers to find solutions that work for everyone.”
“We are trying to adapt to the new normal as fast as possible,” said Max Conrady, Senior Vice President Cargo at Fraport AG. “We were used to stable, fixed flight plans, and the changes we are experiencing, with many chartered flights, have demanded flexibility from airports, cargo handlers and supply chains. The many operational issues to be solved have demanded a new type of agility. But we are adapting to the new kind of normal, establishing contingency groups within our community to address congestion,” he said.
Nina Engelbrecht-Malherbe, Senior Specialist Cargo at Airports Company South Africa, noted that airports served as a point of regional integration for people and products to connect to the globe. “Airports play an important role in underpinning the economy, getting products to markets, and bringing in essential supplies. We need to be agile, work together with industry stakeholders, understand customers and demands, and link them to the routes they need. We need to work together to help get people back to work. We need to come together as a community to do the best we can; but it is also important that the authorities keep citizens safe without restricting growth and development.”
“It is an unprecedented situation, which demands innovation and cooperation,” said Suzette Scheepers, CEO of Messe Muenchen South Africa. “Fortunately, as we have seen at air cargo Africa shows, this sector is one that can be agile and cooperative, so we are optimistic stakeholders will be able to work together to get imports and exports back on track and support the timeout distribution of medical supplies and humanitarian aid.”
Air cargo, logistics crucial in mitigating pandemic impacts
Stakeholders urge collaboration, technology to keep essential goods supply chains moving
The COVID-19 pandemic and global lockdowns have challenged Africa’s air cargo and logistics stakeholders in recent weeks, but through collaboration, agility and the use of digital technologies, they are ably delivering on their mandate to supply critical goods.
This is according to industry players who participated in a webinar hosted by Logistics Update Africa, partners of air cargo Africa, the sector’s leading industry exhibition and conference, on how last-mile delivery services can keep up with Covid-19 demand for critical medical and food shipments.
Speakers from airports authorities, logistics solutions providers and e-commerce companies in Kenya, Nigeria and South Africa noted that adapting to the new realities of closed air lanes and new logistics restrictions had demanded agility and collaboration. However, the same collaboration and agility would serve the industry well when normalcy returns, they said.
With passenger flights grounded and only limited cargo flights landing, airports authorities in South Africa and Kenya said they were seeing a dramatic drop in activity at airports.
Nina Engelbrecht-Malherbe, Senior Specialist – Cargo at Airports Company South Africa, said traffic at OR Tambo international airport had dropped from around 650 movements per day to around 30 – 40 per day. “What’s keeping us busy is the essentials, and we are even seeing passenger aircraft now transporting essential goods in and out of airports, so the cargo precincts are still abuzz.”
Jacob Bwana, Commercial Manager – Cargo at the Kenya Airports Authority, said the pandemic had illustrated that air cargo and its associated logistics network was critical for both commercial and humanitarian purposes. “A key lesson in this time has been the need for solid business continuity plans to mitigate risk and support stakeholders,” he said. On the question of increasing costs, he noted: “Scarcity creates increasing prices, and increases the risk of spoilage, so this is unavoidable. However, we hope to see demand and supply coming back to equilibrium when we return to normalcy. A crisis is not a time to compete, but to collaborate to save lives.”
With reports indicating that air cargo capacity remains 35% lower than last year across all trade lanes around the world, global stakeholders and industry bodies have also emphasized the need for industry collaboration and communication. The International Air Cargo Association (TIACA) has urged the air cargo industry to collaborate to keep fueling trade and ensuring the supply of critical goods, while the International Air Transport Association (Iata) has called for greater coordination between governments to ensure that air freight can continue to flow.
Overcoming last mile challenges
While fewer flights mean the potential for increased efficiency in offloading and distribution of goods, lockdowns and restriction of movement have created bottlenecks and challenges for road freight and last mile players, the speakers said. Among these challenges were compliance with new regulations that restrict movement across borders or during certain hours of the day. However, close collaboration and consultation with governments and value chains had helped to overcome last mile challenges.
Kagure Wamunyu, Chief Strategy Officer at Kobo360, said digital collaboration via Kobo360’s aggregation platform had enabled logistics services to maximize capacity and avoid delays that could have increased costs and slowed the delivery of essential goods. “For example, truck drivers could be required to go into quarantine for 14 days when crossing a border, so by sharing information and working together, companies can arrange for a local driver to take over at the border, to avoid the delay.”
Tolulope George-Yanwah, Country Manager – Nigeria at Jumia Services, said the current crisis was underlining the critical role e-commerce plays, and logistics has been its enabler. “Technologies offer a solution in times like these. As a tech-enabled company, the biggest changes for us have been the need to introduce contactless delivery and enhance precautionary measures. But because we already had the capacity to scale up for special promotional events, we are able to meet growing demand for essential goods. The lesson for everyone is the need to be flexible and react quickly to new situations.”
Suzette Scheepers, CEO of Messe Muenchen South Africa, organisers of air cargo Africa, says supply chains are more important than ever before. “We’re seeing just how important air cargo and the entire logistics chain is, as we strive to take essential medical supplies and food to countries battling the COVID-19 pandemic. They will be increasingly important in bolstering fragile economies in the months to come. We agree that collaboration and communication, as well as harnessing the most advanced models and technologies, will help the sector manage costs and improve efficiencies to keep it sustainable through this difficult time.”
air cargo Africa, to be staged in Johannesburg from February 9 – 11, 2021, will bring together industry stakeholders from across the value chain to discuss the challenges, solutions and opportunities in a fast changing market.
Visit Air Cargo Africa
How DHL Express Scoops 24 Top Employer Awards for the Sixth Consecutive Year
DHL Express received 24 certifications across 23 countries in Sub-Saharan Africa this year
CAPE TOWN, South Africa, November 22, 2019- DHL Express has been recognized as a Top Employer in Africa for the sixth consecutive year by the prestigious Top Employer Africa Institute, highlighting the company’s ongoing commitment to being an employer of choice.
Paul Clegg, VP Human Resources for DHL Express Sub-Saharan Africa, said that being recognised as a Top Employer yet again is a massive point of pride for the company, especially in a year where DHL celebrates its 50th anniversary.
“Having been in business for 50 years is a huge milestone, and we could not have reached our current success without the scores of passionate employees that have dedicated their time and energy to the company over the last half century. With this in mind, we remain committed to investing in our employees, helping them unlock their highest potential well into the future.”
DHL Express received 24 certifications across 23 countries in Sub-Saharan Africa this year, including the coveted Intercontinental Award for having the most Top Employer certifications on the continent. Countries for which DHL Express received certifications include
Angola, Botswana, Cameroon, Cote d’Ivoire, Democratic Republic of Congo, Ethiopia, Gambia, Ghana, Kenya, Madagascar, Mauritius, Morocco, Mozambique, Namibia, Nigeria, Reunion, Rwanda, Senegal, South Africa, Tanzania, Uganda, Zambia and Zimbabwe.
Additionally, DHL Express South Africa has been recognised as the industry leader in South Africa, in the Transport and Logistics sector.
“We view effective employee engagement programs that drive motivation and employee engagement as an integral part of business operations. Not only does it enable us to provide great client service, it helps us to maintain our customer-focused culture across the globe,” he says.
According to Clegg, the business’ use of employee initiatives and programs, including the company’s Certified International Specialist (CIS) cultural change program, has helped to unlock the potential of the company’s employees across Sub-Saharan Africa. “We made the decision some time ago to put strong emphasis on up-skilling and empowering our middle-managers and supervisors, as this rung of leadership is crucial to supporting our growth in the coming years.”
To be certified as a Top Employer in Africa, a company needs to operate in four or more countries and have exceptional employee conditions. The Top Employers Institute conducts comprehensive and independent research by completing HR best practice surveys amongst employees of the relevant companies.
Also Read: Interview With Amadou Diallo, CEO of DHL Global Forwarding Middle East & Africa
The Top Employers Institute survey assesses human resource strategy, policy implementation, practices and employee offerings to reveal whether the company provides exceptional employee conditions, develops talent on all levels and demonstrates leadership through optimizing the development of its employees and employee practices.
“We are beyond honored and thankful to have achieved this huge milestone once again and we look forward to ensuring that we maintain our focus on attracting, retaining and developing our people across the sub-Saharan Africa region,” concluded Clegg.
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