DHL Group is set to invest over €300 million ($349 million) in African warehouses and infrastructure, aiming to tap into growing demand from sectors like e-commerce and renewable energy.

According to DHL, the continent’s trade value increased by 10 per cent despite the United States-China trade tensions.

DHL Express CEO, John Pearson, noted in an interview that Africa could become the world’s second-largest region by trade value within the next four years.

“When we open a new facility, warehouse, distribution center or head office, it’s because we are growing,” Pearson said on Bloomberg TV on Wednesday. “Import growth from China to sub-Saharan Africa is 26 per cent. That is machinery, construction equipment.”

For China and other countries affected by disruptions in US trade, Africa presents an opportunity to diversify.

Jumia Technologies AG, the continent’s largest e-commerce company, noted that Trump’s tariffs are enabling greater access to Chinese goods.

Shipments from China to Africa jumped 56 per cent last month, marking the fastest growth since February 2021.

Despite its growth potential, Africa faces significant infrastructure challenges, requiring up to $170 billion annually for roads and power networks.

DHL Express CEO John Pearson said the African Continental Free Trade Area could boost trade activity.

DHL has observed an increase in deliveries from smaller cities in Nigeria and Ethiopia.

The majority of DHL’s African operations, including warehousing, packaging, and supply-chain management, are concentrated in South Africa, Egypt, and Kenya.