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With cooperation from its member countries, the landmark agreement could be a turning point for Africa\u2019s underperforming intra-regional trade. <\/p>

The ongoing global uncertainty and the lack of regional cooperation have long hindered Africa\u2019s potential from becoming an economic powerhouse.<\/p>\n

But with its latest economic game changer coming in the form of a new free trade agreement, the continent looks to be well on track.<\/p>\n

After four years of negotiations, the African Continental Free Trade Agreement<\/a> (AfCFTA) finally came into effect on May 30 this year.<\/p>\n

With 54 countries in the bloc \u2014 forming a free trade area covering more than a billion people, and with a market size of around US$2.5 trillion (\u20ac2.26 trillion) \u2014 the AfCFTA is a landmark development.<\/p>\n

The agreement aims to create a single market for its member states\u2019 goods and services, facilitate free movement of people and investments, and eventually launch a single-currency union.<\/p>\n

\"Implementing<\/a>
Implementing the AfCFTA may be challenging because of the economic disparity among African countries.<\/figcaption><\/figure>\n

These initiatives are fraught with significant challenges, particularly in the light of ongoing trade conflicts between the U.S. and China, but the rewards for the continent will also be substantial.<\/p>\n

How Africa stands to gain from AfCFTA<\/strong><\/h2>\n

One key benefit of the AfCFTA is the reduction of tariffs on 90 percent of goods traded across the continent. The UN Economic Commission for Africa (UNECA)<\/a> estimated that such a move could increase intra-African trade by 52 percent in less than five years.<\/p>\n

The continent has some catching up to do in this respect: intra-African exports made up only 17 percent of total trade in 2017<\/a>, compared to 59 percent and 69 percent for intra-Asia and intra-Europe trade respectively.<\/p>\n

For African-owned companies, the agreement will make new markets more accessible within the region. Tapping on the AfCFTA can help companies grow their customer base and diversify, both by export destination and the type of goods produced.<\/p>\n

\u201cThe agreement opens the door to the creation of more efficient regional supply chains which, in turn, would promote investment, growth, and job creation in Africa,\u201d commented Amadou Diallo, CEO, DHL Global Forwarding, Middle East and Africa.<\/p>\n

Reduced input costs will be another significant advantage. The AfCFTA will make it easier for companies to import raw materials from other resource-rich countries within Africa. It will also ease the process of setting up assembly firms in other countries to access cheaper means of production, and thus improve their bottom lines.<\/p>\n

In the long term, the AfCFTA is also expected to boost economic growth across the continent. On average, manufacturing represents only about 10 percent of total GDP in Africa<\/a> currently \u2014 well below the figure in other developing regions.<\/p>\n

A thriving continental free trade area could give countries an incentive to transform their commodities into manufactured goods, and thus reduce this gap. A more significant manufacturing sector would also lead companies to create more well-paid jobs and help alleviate poverty in Africa.<\/p>\n

A cushion against the U.S.<\/strong>\u2013China trade conflict<\/strong><\/h2>\n

More broadly, forming a cohesive and uniform pan-African approach to trade could cushion the continent against any negative transitional effects of the trade war between China and the U.S.<\/p>\n

In 2018, the value of trade between Africa and China, the continent\u2019s largest trading partner, was worth over US$200 billion<\/a>. As a way to spread the risks presented by its trade war with the U.S., China expanded its imports from the continent by 65 percent to US$100 billion, up from US$60 billion in 2017.<\/p>\n

\"DHL<\/a><\/p>\n

However, the trade war has led to slowing growth in China, which raises the possibility of reduced export opportunities for African companies in the future due to softer demand.<\/p>\n

As DHL\u2019s Global Trade Barometer<\/a> (GTB) indicates, the outlook for China\u2019s trade growth contracted from 49 points in June 2019 to 45 in September. Key sectors also reveal deteriorating trends. Trade in industrial raw materials, for example, fell by 22 points to just 48 over the three months to September, indicating a weakening sector outlook.<\/p>\n

The timely ratification of the AfCFTA, which will jump-start intra-African trade, will cushion African exporters against a potential reduction in Chinese demand.<\/p>\n

It will also put companies in a stronger position to seize opportunities to fill any exports gap from China to the U.S. Potential beneficiaries include African natural gas producers, particularly Angola\u2019s crude oil producers.<\/p>\n

On the other hand, as some commentators have pointed out<\/a>, harmful trade war fallout for Africa could include China dumping cheap products into domestic African markets, as it looks to consolidate what it has lost in the U.S.<\/p>\n

Roadblocks to overcome <\/strong><\/h2>\n

While the AfCFTA offers an ambitious vision of intra-African free trade, implementing it may prove challenging, not least because of the economic disparity that exists among African countries.<\/p>\n

\u201cIt will be important to address [Africa\u2019s economic] disparities to ensure that special and differential treatments for the least developed countries are adopted and successfully implemented,\u201d said Landry Signe<\/a>, a fellow at the Brookings Institution\u2019s Africa Growth Initiative.<\/p>\n

Hampered by substandard power networks, airline connections, and roads, many less developed economies are ill-equipped to enable trade flows, even if governments tear down tariffs and legal barriers.<\/p>\n

\"Governments<\/a>
Governments will need to boost the skill levels of its workforce.<\/figcaption><\/figure>\n

Instead, it is the more developed economies, such as South Africa<\/a>, that are likely to profit most from the agreement. South Africa has a relatively robust infrastructure, for example, and so will able to leverage its air links, ports, and dry docks to attract more investment.<\/p>\n

Africa’s advanced countries are also at an advantage with their more strongly developed manufacturing capabilities. There is a risk that by allowing them to sell their goods and services to the continent\u2019s less developed countries, the AfCFTA could undercut industrial development in these places.<\/p>\n

Unlocking Africa\u2019s economic and trade potential<\/strong><\/h2>\n

The AfCFTA can likely still play a game-changing role in Africa\u2019s economic diversification and growth.<\/p>\n

For it to work, however, participating countries will need to build an efficient and participatory institutional architecture for it to avoid leaving any poorer economies behind.<\/p>\n

At the same time, governments will need to ensure their corporate law systems allow businesses to operate across borders with minimal red tape. Industrial policies will be required \u2014 especially those concerning manufacturing \u2014 to act as guidelines for productivity, competition, diversification, and economic complexity.<\/p>\n

And governments will also need to boost skill levels \u2014 an issue that will come to the fore as companies try to build international value chains with a highly trained workforce.<\/p>\n

The stakes are high, but already, African countries are starting to strategize<\/a> on how to benefit from the agreement.<\/p>\n

As Monde Muyangwa, Director, Africa program at the Woodrow Wilson International Center<\/a>, suggests: \u201cIf Africa really gets this right, and puts its energies and its forces behind it, this could transform the continent.\u201d<\/p>\n","post_title":"Africa\u2019s continental free trade agreement has finally launched. What now?","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"africas-continental-free-trade-agreement-has-finally-launched-what-now","to_ping":"","pinged":"","post_modified":"2025-05-15 15:53:25","post_modified_gmt":"2025-05-15 07:53:25","post_content_filtered":"

The ongoing global uncertainty and the lack of regional cooperation have long hindered Africa\u2019s potential from becoming an economic powerhouse.<\/p>\n

But with its latest economic game changer coming in the form of a new free trade agreement, the continent looks to be well on track.<\/p>\n

After four years of negotiations, the African Continental Free Trade Agreement<\/a> (AfCFTA) finally came into effect on May 30 this year.<\/p>\n

With 54 countries in the bloc \u2014 forming a free trade area covering more than a billion people, and with a market size of around US$2.5 trillion (\u20ac2.26 trillion) \u2014 the AfCFTA is a landmark development.<\/p>\n

The agreement aims to create a single market for its member states\u2019 goods and services, facilitate free movement of people and investments, and eventually launch a single-currency union.<\/p>\n

\"Implementing<\/a>
Implementing the AfCFTA may be challenging because of the economic disparity among African countries.<\/figcaption><\/figure>\n

These initiatives are fraught with significant challenges, particularly in the light of ongoing trade conflicts between the U.S. and China, but the rewards for the continent will also be substantial.<\/p>\n

How Africa stands to gain from AfCFTA<\/strong><\/h2>\n

One key benefit of the AfCFTA is the reduction of tariffs on 90 percent of goods traded across the continent. The UN Economic Commission for Africa (UNECA)<\/a> estimated that such a move could increase intra-African trade by 52 percent in less than five years.<\/p>\n

The continent has some catching up to do in this respect: intra-African exports made up only 17 percent of total trade in 2017<\/a>, compared to 59 percent and 69 percent for intra-Asia and intra-Europe trade respectively.<\/p>\n

For African-owned companies, the agreement will make new markets more accessible within the region. Tapping on the AfCFTA can help companies grow their customer base and diversify, both by export destination and the type of goods produced.<\/p>\n

\u201cThe agreement opens the door to the creation of more efficient regional supply chains which, in turn, would promote investment, growth, and job creation in Africa,\u201d commented Amadou Diallo, CEO, DHL Global Forwarding, Middle East and Africa.<\/p>\n

Reduced input costs will be another significant advantage. The AfCFTA will make it easier for companies to import raw materials from other resource-rich countries within Africa. It will also ease the process of setting up assembly firms in other countries to access cheaper means of production, and thus improve their bottom lines.<\/p>\n

In the long term, the AfCFTA is also expected to boost economic growth across the continent. On average, manufacturing represents only about 10 percent of total GDP in Africa<\/a> currently \u2014 well below the figure in other developing regions.<\/p>\n

A thriving continental free trade area could give countries an incentive to transform their commodities into manufactured goods, and thus reduce this gap. A more significant manufacturing sector would also lead companies to create more well-paid jobs and help alleviate poverty in Africa.<\/p>\n

A cushion against the U.S.<\/strong>\u2013China trade conflict<\/strong><\/h2>\n

More broadly, forming a cohesive and uniform pan-African approach to trade could cushion the continent against any negative transitional effects of the trade war between China and the U.S.<\/p>\n

In 2018, the value of trade between Africa and China, the continent\u2019s largest trading partner, was worth over US$200 billion<\/a>. As a way to spread the risks presented by its trade war with the U.S., China expanded its imports from the continent by 65 percent to US$100 billion, up from US$60 billion in 2017.<\/p>\n

\"DHL<\/a><\/p>\n

However, the trade war has led to slowing growth in China, which raises the possibility of reduced export opportunities for African companies in the future due to softer demand.<\/p>\n

As DHL\u2019s Global Trade Barometer<\/a> (GTB) indicates, the outlook for China\u2019s trade growth contracted from 49 points in June 2019 to 45 in September. Key sectors also reveal deteriorating trends. Trade in industrial raw materials, for example, fell by 22 points to just 48 over the three months to September, indicating a weakening sector outlook.<\/p>\n

The timely ratification of the AfCFTA, which will jump-start intra-African trade, will cushion African exporters against a potential reduction in Chinese demand.<\/p>\n

It will also put companies in a stronger position to seize opportunities to fill any exports gap from China to the U.S. Potential beneficiaries include African natural gas producers, particularly Angola\u2019s crude oil producers.<\/p>\n

On the other hand, as some commentators have pointed out<\/a>, harmful trade war fallout for Africa could include China dumping cheap products into domestic African markets, as it looks to consolidate what it has lost in the U.S.<\/p>\n

Roadblocks to overcome <\/strong><\/h2>\n

While the AfCFTA offers an ambitious vision of intra-African free trade, implementing it may prove challenging, not least because of the economic disparity that exists among African countries.<\/p>\n

\u201cIt will be important to address [Africa\u2019s economic] disparities to ensure that special and differential treatments for the least developed countries are adopted and successfully implemented,\u201d said Landry Signe<\/a>, a fellow at the Brookings Institution\u2019s Africa Growth Initiative.<\/p>\n

Hampered by substandard power networks, airline connections, and roads, many less developed economies are ill-equipped to enable trade flows, even if governments tear down tariffs and legal barriers.<\/p>\n

\"Governments<\/a>
Governments will need to boost the skill levels of its workforce.<\/figcaption><\/figure>\n

Instead, it is the more developed economies, such as South Africa<\/a>, that are likely to profit most from the agreement. South Africa has a relatively robust infrastructure, for example, and so will able to leverage its air links, ports, and dry docks to attract more investment.<\/p>\n

Africa’s advanced countries are also at an advantage with their more strongly developed manufacturing capabilities. There is a risk that by allowing them to sell their goods and services to the continent\u2019s less developed countries, the AfCFTA could undercut industrial development in these places.<\/p>\n

Unlocking Africa\u2019s economic and trade potential<\/strong><\/h2>\n

The AfCFTA can likely still play a game-changing role in Africa\u2019s economic diversification and growth.<\/p>\n

For it to work, however, participating countries will need to build an efficient and participatory institutional architecture for it to avoid leaving any poorer economies behind.<\/p>\n

At the same time, governments will need to ensure their corporate law systems allow businesses to operate across borders with minimal red tape. Industrial policies will be required \u2014 especially those concerning manufacturing \u2014 to act as guidelines for productivity, competition, diversification, and economic complexity.<\/p>\n

And governments will also need to boost skill levels \u2014 an issue that will come to the fore as companies try to build international value chains with a highly trained workforce.<\/p>\n

The stakes are high, but already, African countries are starting to strategize<\/a> on how to benefit from the agreement.<\/p>\n

As Monde Muyangwa, Director, Africa program at the Woodrow Wilson International Center<\/a>, suggests: \u201cIf Africa really gets this right, and puts its energies and its forces behind it, this could transform the continent.\u201d<\/p>\n","post_parent":0,"guid":"https:\/\/lot.dhl.com\/?p=5173","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},"custom":{"thumbnail":false,"title":"","excerpt":"","cta":"Read more","linkmail":false,"cta_url":"","email_address":"","outbound_email_subject":""},"select_existing_outbound_links":false}]},{"acf_fc_layout":"wysiwyg","wysiwyg":"

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\u64da\u5e03\u9b6f\u91d1\u65af\u7814\u7a76\u6240<\/a>\u7d71\u8a08\uff0c\u81ea2000\u5e74\u4ee5\u4f86\uff0c\u975e\u6d32\u5927\u9678\u7684\u4e92\u806f\u7db2\u7528\u6236\u6578\u91cf\u5df2\u7d93\u589e\u9577\u4e8650\u500d\u3002\u540c\u6a23\u7684\u6578\u64da\u8868\u660e\uff0c\u79fb\u52d5\u6280\u8853\u70ba\u975e\u6d32\u5927\u9678\u63d0\u4f9b\u4e86170\u842c\u500b\u5de5\u4f5c\u5d17\u4f4d\u548c1440\u5104\u7f8e\u5143\u7684\u7d93\u6fdf\u6536\u5165\uff0c\u7d04\u4f54\u5176GDP\u76848.5%\u3002<\/p>\n

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\u6211\u5011\u6700\u8fd1\u9084\u64f4\u5927\u4e86\u6211\u5011\u7684\u6578\u5b57\u5e73\u53f0\uff0cmyDHLi\uff0c\u5b83\u70ba\u5ba2\u6236\u63d0\u4f9b\u4e86\u5c0d\u6d77\u904b\u548c\u7a7a\u904b\u7684\u5168\u9762\u53ef\u8996\u6027\u548c\u63a7\u5236\u3002\u8a72\u6578\u5b57\u5e73\u53f0\u4f7f\u5f97\u7372\u53d6\u5831\u50f9\u3001\u9810\u8a02\u548c\u8ddf\u8e2a\u8ca8\u7269\uff0c\u751a\u81f3\u5be9\u67e5\u6587\u4ef6\u548c\u5206\u6790\u8b8a\u5f97\u7c21\u55ae\uff0c\u63a8\u52d5\u5728\u7dda\u9810\u8a02\u91cf\u589e\u52a0\u4e8656%\u3002<\/p>\n

\u975e\u6d32\u5927\u9678\u84ec\u52c3\u767c\u5c55\u7684\u79d1\u6280\u7522\u696d\u4e5f\u5c0d\u65b0\u51a0\u80ba\u708e\u75ab\u60c5\u505a\u51fa\u4e86\u4ee4\u4eba\u522e\u76ee\u76f8\u770b\u7684\u53cd\u61c9–\u4e16\u754c\u885b\u751f\u7d44\u7e54\u5831\u544a\u986f\u793a<\/a>\uff0c\u70ba\u61c9\u5c0d\u65b0\u51a0\u80ba\u708e\u75ab\u60c5\u800c\u958b\u767c\u7684\u6240\u6709\u65b0\u6280\u8853\u6216\u6539\u9032\u6280\u8853\u4e2d\uff0c\u670912.8%\u662f\u4f86\u81ea\u975e\u6d32\u3002<\/p>\n

\u5373\u4f7f\u975e\u6280\u8853\u4f01\u696d\u4e5f\u80fd\u901a\u904e\u5229\u7528\u73fe\u4ee3\u6280\u8853\u800c\u53d7\u76ca\u3002\u6578\u5b57\u5316\u901a\u904e\u524d\u6240\u672a\u6709\u7684\u65b9\u5f0f\u5c0d\u4f01\u696d\u9032\u884c\u4e86\u7cbe\u7c21\u3001\u7c21\u5316\u548c\u6574\u5408\u3002\u4f8b\u5982\uff0c\u7e3d\u90e8\u8a2d\u5728\u5357\u975e\u7684\u5305\u5bb9\u6027\u73a9\u5076\u88fd\u9020\u5546Malaville Toys<\/a>\u5229\u7528\u793e\u4ea4\u5a92\u9ad4\u548c\u96fb\u5b50\u5546\u52d9\u5438\u5f15\u4e86\u4f5c\u70ba\u6536\u85cf\u5bb6\u7684\u570b\u969b\u53d7\u773e\u3002<\/p>\n

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DHL Africa eShop has expanded to serve 34 African countries in a bid to fulfill the continent\u2019s growing demand for international consumer brands. <\/p>

E-commerce is a vital lifeline for the US$25 trillion (\u20ac23 trillion) global retail industry today. This rang particularly true in the first quarter of 2020, as Covid-19 quarantines locked down countries across the globe, confining shoppers to their homes \u2014 and their screens.<\/p>\n

E-commerce service provider Oberlo predicted that by 2023, shoppers will spend one in every five dollars online.<\/p>\n

In recent years, emerging markets have become increasingly attractive to foreign players, observed a Euromonitor report<\/a>. These include countries with growing middle-class, urban populations such as India, China and South Africa.<\/p>\n

Zooming in on Africa, research by McKinsey projected that the continent\u2019s consumer spending would reach US$2.1 trillion by 2025<\/a>, representing the region\u2019s \u201csingle largest business opportunity\u201d.<\/p>\n

\"Millenials<\/a>
Younger digital natives accounted for over 25 percent of South Africa\u2019s total population and millennials represented over 1.5 billion people in emerging markets this decade, Euromonitor reported.<\/figcaption><\/figure>\n

Yet, millions of African consumers seem to have flown under the radar of most global brands. \u201cAt the moment, 90 percent of U.S. and U.K. retailers don\u2019t sell in Africa,\u201d said Chris Folayan, CEO of MallforAfrica<\/a> in late 2018.<\/p>\n

\u201cThese businesses have dismissed the continent for reasons I have no clue of \u2014 they just don\u2019t see what [it] can do,\u201d he added, affirming that a local partner could help businesses overcome challenges such as lack of infrastructure and corruption concerns.<\/p>\n

In 2012, Folayan launched MallForAfrica to help friends and family to shop directly from international retailers\u2019 online stores. In an interview with Discover DHL<\/a>, the entrepreneur recalled his journey of growing MallForAfrica from simple lines of code to the disruptive e-commerce platform it is today, partnering with DHL Express to deliver purchased items straight to shoppers\u2019 doorsteps.<\/p>\n

RELATED ARTICLES<\/strong><\/p>

<\/figure><\/a>Serious about taking your brand global?<\/strong><\/a>Reach 220 countries and territories around the world, with easy shipping, preferential shipping rates, exclusive tools, and a trusted network!<\/p>

In April 2019, DHL Express took its partnership with MallForAfrica one step further. Partnering with Link Commerce, the company behind the platform, DHL Africa eShop was launched.<\/p>\n

Opportunities abound to connect quality brands and products to African shoppers<\/strong><\/h2>\n

Today, DHL Africa eShop is an e-commerce platform present in 34 African countries. These include Nigeria and South Africa, the continent\u2019s online retail leaders, according to data provider Research and Markets.<\/p>\n

Integrating the existing online retail and brokerage platforms developed by MallForAfrica and DHL Express\u2019 global logistics network, DHL Africa eShop ships direct orders from overseas retailers to buyers on the continent.<\/p>\n

\"\"<\/a>
DHL Africa eShop\u2019s website displays the global retailers that customers can purchase from upon installing the app.<\/figcaption><\/figure>\n

The e-commerce platform was launched amid stiff competition from market incumbents Jumia, Konga and Takealot. Global investor interest from the likes of Goldman Sachs and MTN had made Jumia\u2019s owners, Africa Internet Group, the continent\u2019s first unicorn startup in 2016<\/a>.<\/p>\n

However, the competitive and growing landscape has only fueled DHL\u2019s interest in the market. The global logistics provider acquired a minority stake in Link Commerce just shy of a year from the launch, with Hennie Heymans, CEO of DHL Express Sub-Saharan Africa, taking a spot on the investee firm\u2019s board.<\/p>\n

\u201cAcquiring a stake in Link Commerce \u2013 the company behind the MallforAfrica.com platform \u2013 shows our tremendous support of e-commerce in Africa,\u201d said Heymans. \u201cIt also positions us to realize our ambitions of growing the eShop offering globally.\u201d<\/p>\n

\u201cWith the DHL investment, we are now able to grow faster by leveraging the amazing shipping network DHL has built globally. This will help us expand our white-label turnkey B2B eCommerce platform and provide online shoppers with the ability to shop more at great shipping rates fast,\u201d Folayan added.<\/p>\n

Local market conditions in favor of e-commerce growth<\/strong><\/h2>\n

According to Heymans, the e-commerce market in Sub-Saharan Africa currently offers some of the biggest potential for rapid growth in the world.<\/p>\n

The success of DHL Africa eShop is testament to the demand. Since its launch and rapid spread across the region, tens of thousands of users have downloaded the DHL eShop Africa app.<\/p>\n

\u201cAwesome store selection and service. Shipping is super fast as expected from DHL. I will be needing a bigger closet!\u201d posted user \u201cArim Mera\u201d in a positive review.<\/p>\n

\"DHL<\/a>
From one-man retail stands to global brands, a strong payments and logistics framework are key for success in today\u2019s globalized, Internet-driven sector.<\/figcaption><\/figure>\n

\u201cGlobal e-commerce trade has exploded over the past few years with the advent of more free trade agreements being signed<\/a>, the cost of getting online reducing globally, and more people being able to start their own e-commerce sites easily within minutes,\u201d observed Folayan<\/a>.<\/p>\n

\u201cDelivery has always been a huge factor in e-commerce success and we have seen shipments get to our customers faster year-over-year,\u201d he added. \u201cThe world has seen a huge positive shift with no end in sight.\u201d<\/p>\n","post_title":"Africa\u2019s e-commerce scene opens new markets for global online retailers","post_excerpt":"","post_status":"draft","comment_status":"open","ping_status":"open","post_password":"","post_name":"africas-e-commerce-scene-opens-new-markets-for-global-online-retailers","to_ping":"","pinged":"","post_modified":"2023-12-13 09:57:21","post_modified_gmt":"2023-12-13 01:57:21","post_content_filtered":"

E-commerce is a vital lifeline for the US$25 trillion (\u20ac23 trillion) global retail industry today. This rang particularly true in the first quarter of 2020, as Covid-19 quarantines locked down countries across the globe, confining shoppers to their homes \u2014 and their screens.<\/p>\n

E-commerce service provider Oberlo predicted that by 2023, shoppers will spend one in every five dollars online.<\/p>\n

In recent years, emerging markets have become increasingly attractive to foreign players, observed a Euromonitor report<\/a>. These include countries with growing middle-class, urban populations such as India, China and South Africa.<\/p>\n

Zooming in on Africa, research by McKinsey projected that the continent\u2019s consumer spending would reach US$2.1 trillion by 2025<\/a>, representing the region\u2019s \u201csingle largest business opportunity\u201d.<\/p>\n

\"Millenials<\/a>
Younger digital natives accounted for over 25 percent of South Africa\u2019s total population and millennials represented over 1.5 billion people in emerging markets this decade, Euromonitor reported.<\/figcaption><\/figure>\n

Yet, millions of African consumers seem to have flown under the radar of most global brands. \u201cAt the moment, 90 percent of U.S. and U.K. retailers don\u2019t sell in Africa,\u201d said Chris Folayan, CEO of MallforAfrica<\/a> in late 2018.<\/p>\n

\u201cThese businesses have dismissed the continent for reasons I have no clue of \u2014 they just don\u2019t see what [it] can do,\u201d he added, affirming that a local partner could help businesses overcome challenges such as lack of infrastructure and corruption concerns.<\/p>\n

In 2012, Folayan launched MallForAfrica to help friends and family to shop directly from international retailers\u2019 online stores. In an interview with Discover DHL<\/a>, the entrepreneur recalled his journey of growing MallForAfrica from simple lines of code to the disruptive e-commerce platform it is today, partnering with DHL Express to deliver purchased items straight to shoppers\u2019 doorsteps.<\/p>\n

RELATED ARTICLES<\/strong><\/p>

<\/figure><\/a>
Serious about taking your brand global?<\/strong><\/a>
Reach 220 countries and territories around the world, with easy shipping, preferential shipping rates, exclusive tools, and a trusted network!<\/p>

In April 2019, DHL Express took its partnership with MallForAfrica one step further. Partnering with Link Commerce, the company behind the platform, DHL Africa eShop was launched.<\/p>\n

Opportunities abound to connect quality brands and products to African shoppers<\/strong><\/h2>\n

Today, DHL Africa eShop is an e-commerce platform present in 34 African countries. These include Nigeria and South Africa, the continent\u2019s online retail leaders, according to data provider Research and Markets.<\/p>\n

Integrating the existing online retail and brokerage platforms developed by MallForAfrica and DHL Express\u2019 global logistics network, DHL Africa eShop ships direct orders from overseas retailers to buyers on the continent.<\/p>\n

\"\"<\/a>
DHL Africa eShop\u2019s website displays the global retailers that customers can purchase from upon installing the app.<\/figcaption><\/figure>\n

The e-commerce platform was launched amid stiff competition from market incumbents Jumia, Konga and Takealot. Global investor interest from the likes of Goldman Sachs and MTN had made Jumia\u2019s owners, Africa Internet Group, the continent\u2019s first unicorn startup in 2016<\/a>.<\/p>\n

However, the competitive and growing landscape has only fueled DHL\u2019s interest in the market. The global logistics provider acquired a minority stake in Link Commerce just shy of a year from the launch, with Hennie Heymans, CEO of DHL Express Sub-Saharan Africa, taking a spot on the investee firm\u2019s board.<\/p>\n

\u201cAcquiring a stake in Link Commerce \u2013 the company behind the MallforAfrica.com platform \u2013 shows our tremendous support of e-commerce in Africa,\u201d said Heymans. \u201cIt also positions us to realize our ambitions of growing the eShop offering globally.\u201d<\/p>\n

\u201cWith the DHL investment, we are now able to grow faster by leveraging the amazing shipping network DHL has built globally. This will help us expand our white-label turnkey B2B eCommerce platform and provide online shoppers with the ability to shop more at great shipping rates fast,\u201d Folayan added.<\/p>\n

Local market conditions in favor of e-commerce growth<\/strong><\/h2>\n

According to Heymans, the e-commerce market in Sub-Saharan Africa currently offers some of the biggest potential for rapid growth in the world.<\/p>\n

The success of DHL Africa eShop is testament to the demand. Since its launch and rapid spread across the region, tens of thousands of users have downloaded the DHL eShop Africa app.<\/p>\n

\u201cAwesome store selection and service. Shipping is super fast as expected from DHL. I will be needing a bigger closet!\u201d posted user \u201cArim Mera\u201d in a positive review.<\/p>\n

\"DHL<\/a>
From one-man retail stands to global brands, a strong payments and logistics framework are key for success in today\u2019s globalized, Internet-driven sector.<\/figcaption><\/figure>\n

\u201cGlobal e-commerce trade has exploded over the past few years with the advent of more free trade agreements being signed<\/a>, the cost of getting online reducing globally, and more people being able to start their own e-commerce sites easily within minutes,\u201d observed Folayan<\/a>.<\/p>\n

\u201cDelivery has always been a huge factor in e-commerce success and we have seen shipments get to our customers faster year-over-year,\u201d he added. \u201cThe world has seen a huge positive shift with no end in sight.\u201d<\/p>\n

RELATED ARTICLES<\/strong><\/p>

<\/figure><\/a>
DHL Africa eShop<\/strong><\/a>
An innovative platform that connects shoppers with over 200 online retailers in the U.S. and UK, with all shipments delivered door-to-door by DHL Express.<\/p>","post_parent":0,"guid":"https:\/\/lot.dhl.com\/?p=7066","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},"custom":{"thumbnail":false,"title":"","excerpt":"","cta":"Read more","linkmail":false,"cta_url":"","email_address":"","outbound_email_subject":""},"select_existing_outbound_links":false}]},{"acf_fc_layout":"wysiwyg","wysiwyg":"

\u7269\u6d41\uff1a\u8b93\u4e16\u754c\u8b8a\u5c0f<\/strong><\/h2>\n

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\u4f8b\u5982\uff0c\u6211\u5011\u7684GoTrade<\/a>\u8a08\u5283\u4f7f\u5f97\u4f01\u696d\u5f9e\u672c\u5730\u92b7\u552e\u62d3\u5c55\u5230\u5229\u7528\u6211\u5011\u7269\u6d41\u7db2\u7d61\u7684\u529b\u91cf\u9032\u884c\u7684\u5168\u7403\u92b7\u552e\u3002\u73fe\u5728\uff0c\u4ee5\u524d\u5728\u5168\u7403\u5316\u65b9\u9762\u843d\u5f8c\u7684\u975e\u6d32\u570b\u5bb6\u7684\u4e2d\u5c0f\u578b\u4f01\u696d\u53ef\u4ee5\u5728\u767c\u9054\u5e02\u5834\u7372\u5f97\u7121\u6578\u7684\u65b0\u6a5f\u9047\u3002<\/p>\n

\u7269\u6d41\u662f\u63a8\u52d5\u5168\u7403\u767c\u5c55\u7684\u5f15\u64ce\uff0c\u53ef\u5728\u5340\u57df\u4e4b\u9593\u5efa\u7acb\u806f\u7e6b\uff0c\u6253\u9020\u8de8\u5883\u8cbf\u6613\u9014\u5f91\uff0c\u5275\u9020\u65b0\u7684\u6a5f\u6703\u4e26\u4fc3\u9032\u7d93\u6fdf\u767c\u5c55\u3002\u4e0b\u4e00\u4ee3\u7684\u4e00\u4e9b\u4f01\u696d\u5bb6\u5c07\u8207\u6211\u4e00\u8d77\u5f9e\u4e8b\u7269\u6d41\u884c\u696d\uff0c\u6211\u5efa\u8b70\u9019\u4e9b\u4f01\u696d\u5bb6\u8981\u8207\u6566\u8c6a\u7b49\u6709\u8c50\u5bcc\u5e02\u5834\u7d93\u9a57\u7684\u4f01\u696d\u5efa\u7acb\u806f\u7e6b\u3002<\/p>\n

\u76ee\u524d\uff0c\u57c3\u585e\u4fc4\u6bd4\u4e9e\u6709\u5927\u91cf\u7684\u4f01\u696d\u5bb6\u52a0\u5165\u7269\u6d41\u884c\u696d\u3002\u7136\u800c\uff0c\u8a72\u570b\u5feb\u901f\u767c\u5c55\u7684\u884c\u696d\u4ecd\u5728\u52aa\u529b\u63a1\u7528\u5168\u7403\u6a19\u6e96–\u9019\u662f\u4e00\u500b\u5c0f\u5c0f\u7684\u963b\u7919\uff0c\u4f46\u53ef\u80fd\u5f71\u97ff\u5176\u589e\u9577\u901f\u5ea6\u3002\u5728\u6566\u8c6a\uff0c\u6211\u5011\u8207\u4e16\u754c\u8cbf\u6613\u7d44\u7e54\u548c\u5176\u4ed6\u8cbf\u6613\u806f\u76df\u5408\u4f5c\uff0c\u70ba\u5e74\u8f15\u7684\u7269\u6d41\u4f01\u696d\u5bb6\u5728\u8de8\u5883\u5408\u898f\u548c\u5176\u4ed6\u6f5b\u5728\u969c\u7919\u65b9\u9762\u63d0\u4f9b\u5148\u6a5f\u3002<\/p>\n"},{"acf_fc_layout":"outbound_box","cards":[{"type":"linked","linked_post":{"ID":9158,"post_author":"159","post_date":"2020-11-13 10:00:35","post_date_gmt":"2020-11-13 02:00:35","post_content":"

As African businesses grapple with the impact of Covid-19, the new sustainability program by Deutsche Post DHL Group may be the answer to survival and sustainable growth. <\/p>

Every spring, with the roses in full bloom, farmers in Kenya\u2019s scenic Rift Valley would be knee-deep in the open fields, clipping tens of thousands of flowers to be shipped off to the rest of the world.<\/p>\n

But this year has been different. The flower trade in Kenya<\/a>, Africa\u2019s largest flower exporter, has come to a near-standstill amid the Covid-19 pandemic.<\/p>\n

The flower industry in Africa has dumped nearly 241,000 stems<\/a> due to a slump in demand and supply chain disruptions, from delayed or canceled flights to higher freight costs. Several farms have also shuttered.<\/p>\n

The industry’s plight is a snapshot of the hard-hitting impact the continent is grappling with because of the pandemic. Africa is headed for its first recession in 25 years<\/a>,<\/u> with its gross domestic product (GDP) forecasted to be -3.3 percent this year.<\/p>\n

Often mired in red tape and corruption, developing countries in Africa already face global trade barriers and the pandemic has further hindered their access.<\/p>\n

But at least one new partnership is hoping to lead the charge for change.<\/p>\n

The German Federal Ministry for Economic Cooperation and Development (BMZ) and Deutsche Post DHL Group (DPDHL) have signed a Memorandum of Understanding to give small and medium-sized enterprises (SMEs) from developing countries access to global markets. The two parties pledged to invest \u20ac30 million in African trade over the next few years.<\/p>\n

\"DPDHL
DPDHL Group CEO Frank Appel announcing the GoTrade sustainability program during a virtual press conference<\/figcaption><\/figure>\n

The goal is to reduce trade barriers and speed up digitalization, including pushing for e-commerce to boost cross-border trade between SMEs.<\/p>\n

Signed in September 2020, the agreement comes under DPDHL Group’s latest group-wide sustainability program GoTrade, which aims to promote sustainable economic growth in developing countries.<\/p>\n

\u201cThe corona crisis and the lockdown have disrupted supply chains in developing countries. Millions of companies are fighting for survival,\u201d said Germany\u2019s Federal Minister Gerd M\u00fcller<\/a><\/u>. \u201cRight now we have to keep economic cycles going.\u201d<\/p>\n

Tearing down trade barriers <\/strong><\/h2>\n

Slow economic growth and rigid customs<\/a><\/u> have long been hampering regional export in Africa \u2014 a market of huge potential, with its 1.2 billion people and a combined GDP of US$2.5 trillion (\u20ac2.13 trillion)<\/a><\/u>.<\/p>\n

Currently, African businesses pay an average 6.1 percent<\/a> of tariffs when exporting within the continent, higher than what they pay to export goods outside it. They are also hobbled by border bureaucracy and excessive regulations<\/a><\/u>.<\/p>\n

But the African Continental Free Trade Area (AfCFTA) \u2014 launched in May 2019 with 54 African countries agreeing to create the world\u2019s largest free trade zone \u2014 has been touted as a game changer<\/a>. Set to be implemented in several phases by 2030, the deal will allow intra-African trade to flourish by progressively removing tariffs on 90 percent of goods.<\/p>\n

RELATED ARTICLES<\/strong><\/p>

<\/figure><\/a>Africa\u2019s continental free trade agreement has finally launched. What now?<\/strong><\/a>With cooperation from its member countries, the landmark agreement could be a turning point for Africa\u2019s underperforming intra-regional trade.<\/p>

With Covid-19 plunging the economy into unprecedented chaos, Africa has moved to fast-track negotiations for the second and third phases of the agreement to support businesses. This involves discussions on the legalities and governance of e-commerce and digitalization, given that the pandemic has exposed businesses that lack online capabilities.<\/p>\n

\u201cWe ignore digitalization at our own peril,\u201d said Wamkele Mene<\/a><\/u>, AfCFTA\u2019s Secretary-General, in September.<\/p>\n

This is where the GoTrade program can shine. African SMEs fumbling with red tape can expect help with their digitalization efforts, which will help tackle the current inefficiencies by smoothing out custom procedures.<\/p>\n

\u201cCross-border trade creates prosperity, improves lives and connects people \u2013 but in many regions there are still major hurdles,\u201d said DPDHL Group CEO Frank Appel.<\/p>\n

\u201cMerchants who previously sold their goods regionally get access to customers around the world. For this purpose, we also started our new sustainability program GoTrade. The program engages especially in developing countries which have not yet benefited from globalization as much as others.\u201d<\/p>\n

Five countries \u2014 Morocco, Rwanda, Kenya, Ghana, and the Ivory Coast \u2014 have been identified for the program\u2019s initial implementation.<\/p>\n

\"Africa\u2019s
Africa\u2019s businesses can count on digitalization to grow beyond borders.<\/figcaption><\/figure>\n

GoTrade will cooperate with public sector partners such as national governments and multinational organizations to initiate projects that help speed up customs clearance, reduce delays at borders, and generally reduce cross-border trade costs.<\/p>\n

The program also aims to set up new e-commerce platforms, opening avenues to markets worldwide. This will bolster international trade and expand customer bases at a time when many businesses are struggling.<\/p>\n

The power of digitalization<\/strong><\/h2>\n

Going digital will unlock more opportunities for SMEs in a continent where access to the Internet and technology is quickly growing.<\/p>\n

Internet penetration in sub-Saharan Africa has jumped tenfold<\/a> since the early 2000s, compared with a threefold increase in the rest of the world.<\/p>\n

South Africa-based Malaville Toys<\/a> is one startup that has leveraged its online presence to great effect. Founded by model-entrepreneur Mala Bryan in 2015, the doll-making business thrives on social media marketing campaigns, and products on its website often sell out quickly.<\/p>\n

The dolls, which were created to better represent black women and have found fans worldwide, are exported via DHL Express\u2019 network.<\/p>\n

RELATED ARTICLES<\/strong><\/p>

<\/figure><\/a>Serious about taking your brand global?<\/strong><\/a>Reach 220 countries and territories around the world, with easy shipping, preferential shipping rates, exclusive tools, and a trusted network!<\/p>

\u201cI wanted to be selling overseas because the people that had shown interest in my products come from all over the world,\u201d she said. \u201cI never focused on my local market, the moment I launched I was already focused on selling internationally online.\u201d<\/p>\n

As digitalization in the continent picks up pace, GoTrade is primed to help businesses ride a wave of growth.<\/p>\n

The agreement will be a welcome boost to supply chains and trade relations disrupted by Covid-19, which has pushed a further 115 million people worldwide into poverty in 2020.<\/p>\n","post_title":"Fewer barriers, more trade: How the new GoTrade program will help Africa\u2019s SMEs","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"fewer-barriers-more-trade-how-the-new-gotrade-program-will-help-africas-smes","to_ping":"","pinged":"","post_modified":"2025-05-05 12:34:11","post_modified_gmt":"2025-05-05 04:34:11","post_content_filtered":"

Every spring, with the roses in full bloom, farmers in Kenya\u2019s scenic Rift Valley would be knee-deep in the open fields, clipping tens of thousands of flowers to be shipped off to the rest of the world.<\/p>\n

But this year has been different. The flower trade in Kenya<\/a>, Africa\u2019s largest flower exporter, has come to a near-standstill amid the Covid-19 pandemic.<\/p>\n

The flower industry in Africa has dumped nearly 241,000 stems<\/a> due to a slump in demand and supply chain disruptions, from delayed or canceled flights to higher freight costs. Several farms have also shuttered.<\/p>\n

The industry’s plight is a snapshot of the hard-hitting impact the continent is grappling with because of the pandemic. Africa is headed for its first recession in 25 years<\/a>,<\/u> with its gross domestic product (GDP) forecasted to be -3.3 percent this year.<\/p>\n

Often mired in red tape and corruption, developing countries in Africa already face global trade barriers and the pandemic has further hindered their access.<\/p>\n

But at least one new partnership is hoping to lead the charge for change.<\/p>\n

The German Federal Ministry for Economic Cooperation and Development (BMZ) and Deutsche Post DHL Group (DPDHL) have signed a Memorandum of Understanding to give small and medium-sized enterprises (SMEs) from developing countries access to global markets. The two parties pledged to invest \u20ac30 million in African trade over the next few years.<\/p>\n

\"DPDHL
DPDHL Group CEO Frank Appel announcing the GoTrade sustainability program during a virtual press conference<\/figcaption><\/figure>\n

The goal is to reduce trade barriers and speed up digitalization, including pushing for e-commerce to boost cross-border trade between SMEs.<\/p>\n

Signed in September 2020, the agreement comes under DPDHL Group’s latest group-wide sustainability program GoTrade, which aims to promote sustainable economic growth in developing countries.<\/p>\n

\u201cThe corona crisis and the lockdown have disrupted supply chains in developing countries. Millions of companies are fighting for survival,\u201d said Germany\u2019s Federal Minister Gerd M\u00fcller<\/a><\/u>. \u201cRight now we have to keep economic cycles going.\u201d<\/p>\n

Tearing down trade barriers <\/strong><\/h2>\n

Slow economic growth and rigid customs<\/a><\/u> have long been hampering regional export in Africa \u2014 a market of huge potential, with its 1.2 billion people and a combined GDP of US$2.5 trillion (\u20ac2.13 trillion)<\/a><\/u>.<\/p>\n

Currently, African businesses pay an average 6.1 percent<\/a> of tariffs when exporting within the continent, higher than what they pay to export goods outside it. They are also hobbled by border bureaucracy and excessive regulations<\/a><\/u>.<\/p>\n

But the African Continental Free Trade Area (AfCFTA) \u2014 launched in May 2019 with 54 African countries agreeing to create the world\u2019s largest free trade zone \u2014 has been touted as a game changer<\/a>. Set to be implemented in several phases by 2030, the deal will allow intra-African trade to flourish by progressively removing tariffs on 90 percent of goods.<\/p>\n

RELATED ARTICLES<\/strong><\/p>

<\/figure><\/a>
Africa\u2019s continental free trade agreement has finally launched. What now?<\/strong><\/a>
With cooperation from its member countries, the landmark agreement could be a turning point for Africa\u2019s underperforming intra-regional trade.<\/p>

With Covid-19 plunging the economy into unprecedented chaos, Africa has moved to fast-track negotiations for the second and third phases of the agreement to support businesses. This involves discussions on the legalities and governance of e-commerce and digitalization, given that the pandemic has exposed businesses that lack online capabilities.<\/p>\n

\u201cWe ignore digitalization at our own peril,\u201d said Wamkele Mene<\/a><\/u>, AfCFTA\u2019s Secretary-General, in September.<\/p>\n

This is where the GoTrade program can shine. African SMEs fumbling with red tape can expect help with their digitalization efforts, which will help tackle the current inefficiencies by smoothing out custom procedures.<\/p>\n

\u201cCross-border trade creates prosperity, improves lives and connects people \u2013 but in many regions there are still major hurdles,\u201d said DPDHL Group CEO Frank Appel.<\/p>\n

\u201cMerchants who previously sold their goods regionally get access to customers around the world. For this purpose, we also started our new sustainability program GoTrade. The program engages especially in developing countries which have not yet benefited from globalization as much as others.\u201d<\/p>\n

Five countries \u2014 Morocco, Rwanda, Kenya, Ghana, and the Ivory Coast \u2014 have been identified for the program\u2019s initial implementation.<\/p>\n

\"Africa\u2019s
Africa\u2019s businesses can count on digitalization to grow beyond borders.<\/figcaption><\/figure>\n

GoTrade will cooperate with public sector partners such as national governments and multinational organizations to initiate projects that help speed up customs clearance, reduce delays at borders, and generally reduce cross-border trade costs.<\/p>\n

The program also aims to set up new e-commerce platforms, opening avenues to markets worldwide. This will bolster international trade and expand customer bases at a time when many businesses are struggling.<\/p>\n

The power of digitalization<\/strong><\/h2>\n

Going digital will unlock more opportunities for SMEs in a continent where access to the Internet and technology is quickly growing.<\/p>\n

Internet penetration in sub-Saharan Africa has jumped tenfold<\/a> since the early 2000s, compared with a threefold increase in the rest of the world.<\/p>\n

South Africa-based Malaville Toys<\/a> is one startup that has leveraged its online presence to great effect. Founded by model-entrepreneur Mala Bryan in 2015, the doll-making business thrives on social media marketing campaigns, and products on its website often sell out quickly.<\/p>\n

The dolls, which were created to better represent black women and have found fans worldwide, are exported via DHL Express\u2019 network.<\/p>\n

RELATED ARTICLES<\/strong><\/p>

<\/figure><\/a>
Serious about taking your brand global?<\/strong><\/a>
Reach 220 countries and territories around the world, with easy shipping, preferential shipping rates, exclusive tools, and a trusted network!<\/p>

\u201cI wanted to be selling overseas because the people that had shown interest in my products come from all over the world,\u201d she said. \u201cI never focused on my local market, the moment I launched I was already focused on selling internationally online.\u201d<\/p>\n

As digitalization in the continent picks up pace, GoTrade is primed to help businesses ride a wave of growth.<\/p>\n

The agreement will be a welcome boost to supply chains and trade relations disrupted by Covid-19, which has pushed a further 115 million people worldwide into poverty in 2020.<\/p>\n","post_parent":0,"guid":"https:\/\/lot.dhl.com\/?p=9158","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},"custom":{"thumbnail":false,"title":"","excerpt":"","cta":"Read more","linkmail":false,"cta_url":"","email_address":"","outbound_email_subject":""},"select_existing_outbound_links":false}]},{"acf_fc_layout":"wysiwyg","wysiwyg":"

\u70ba\u6210\u9577\u4e2d\u7684\u4f01\u696d\u63d0\u4f9b\u8cc7\u91d1<\/strong><\/h2>\n

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\u9664\u4e86\u50b3\u7d71\u7684\u878d\u8cc7\u624b\u6bb5\uff0c\u5982\u9280\u884c\u8cb8\u6b3e\uff0c\u66f4\u52a0\u73fe\u4ee3\u5316\u7684\u65b9\u5f0f\u4e5f\u958b\u59cb\u6d41\u884c\uff1a\u4f8b\u5982\uff0c\u98a8\u96aa\u6295\u8cc7\u5728\u975e\u6d32\u8d8a\u4f86\u8d8a\u53d7\u5230\u91cd\u8996\uff0c\u64da\u4f30\u8a08\uff0c\u4eca\u5e74\u5c0d\u975e\u6d32\u4f01\u696d\u7684\u7e3d\u6295\u8cc7\u5c07\u8d85\u904e22.5\u5104\u7f8e\u5143<\/a>\u3002\u5176\u4ed6\u6b63\u5728\u4e0a\u5347\u7684\u878d\u8cc7\u5f62\u5f0f\u5305\u62ec\u5c0f\u984d\u4fe1\u8cb8\u548c\u6578\u5b57\u4f9b\u61c9\u5546\u7684\u773e\u7c4c\uff0c\u70ba\u6210\u9577\u578b\u4f01\u696d\u63d0\u4f9b\u4e86\u4e00\u7cfb\u5217\u7684\u9078\u64c7\u3002<\/p>\n

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