DHL targets $18b of global revenue from Nigeria, others by 2020
As part of efforts to improve its operations in the sub-Saharan Africa region as well as encourage the development of the region, Deutsche Post DHL Group has unveiled strategies to grow the revenue contributions of its businesses in the region by 30 per cent in 2020.
The Group’s strategy tagged: “Strategy 2020: Focus.Connect.Grow.”, will see DHL improving measures towards ensuring that the sub-Saharan Africa region’s contribution rises to 30 per cent from the present 20 per cent being recorded.
Indeed, the 30 per cent, represents $18 billion of a group revenue of $60 billion that the company presently enjoys.
Chief Executive Officer of Deutsche Post DHL Group, Frank Appel during his recent visit to Nigeria, said: “Today, emerging market revenues contribute over 20 percent to Deutsche Post DHL Group’s revenues, but by 2020 the Group expects this figure to climb to 30 percent. Therefore, we will continue to concentrate on organic growth by investing into promising present and future markets.
“DHL already has a strong footprint in Africa, but we see some excellent opportunities to further increase our presence in the Sub-Saharan region. South Africa’s exceptional geographic location as the gateway to Africa, and Nigeria’s growing gross domestic product (GDP) and diversifying markets are only two of the many important indicators for this.”
He noted that DHL continues to significantly invest in Sub-Saharan Africa, adding that in October 2014, the company already announced investments totalling EUR 30.5 million in South Africa, by both its Supply Chain (EUR 14.5 million investment) and Global Forwarding divisions (EUR 16 million investment).
These commitments, according to him, signal the Group’s long-term growth plans for the region as they bring state-of-the-art infrastructure, IT systems and world-class services to support businesses operating in Africa.
On DHL’s commitment to Africa, he said: “We have always been interested in emerging markets. We have in Africa a long tradition and also in Asia, we long to do so and we relate with long-term growth. So, the whole of Africa has a GDP which is smaller than Germany but with 10 times the population. That tells me there is huge opportunity.
And, if Africa gets things in the right direction as we have seen in the last few years, with stability of legislation, stable government, I think that these markets will grow significantly and that creates a massive opportunity for companies like us. And there is nobody else offering such emerging markets like Africa. So for us, it is a great opportunity.
“Our total turnover globally is more than 10 per cent of Nigeria’s GDP, we are a huge company. It is a little bit incomparable, it will change significantly and I have no doubt that business in Nigeria will be significantly larger if the economy continues to grow. There are predictions that Nigeria will be a bigger economy than Germany in 2050. If that happens, our business will probably be much bigger than it is now”.