Africa’s transportation and logistics sector has been a difficult industry to operate. Cities on the continent still have some of the world’s most notorious traffic bottlenecks and flawed addressing systems, making it difficult for people to get about.
Beyond human movement, the lack of a reliable transportation and logistics network has made it difficult for e-commerce platforms to scale successfully.
It is also not uncommon to order a product from a neighbouring country or within the country and have it delivered at a cost that is nearly equal to the product’s price. This leaves the industry open for disruption, and investors are taking notice.
Many investors prefer to invest in Africa’s transportation and logistics industry because the opportunities in the sector have pre-defined models, standard operating procedures, and a recurring revenue stream that flows steadily as long as certain pre-defined criteria are met.
Here are 5 profitable business ideas in Africa’s transportation and logistics industry.
1. Air Cargo Transportation
According to a report, the air cargo transportation business accounts for 35 percent of global world trade with approximately $6 trillion.
Air cargo transportation is a convenient, cost-effective, and preferred method of transporting goods from one country to another, and Africans can benefit.
Starting an aviation cargo transportation business is profitable whether you live in South Africa, Nigeria, Kenya, Ghana, Ethiopia, or Mauritius.
Keep in mind that the sector is capital-intensive, so you’ll need to brush up on your skills.
Consider becoming an online understudy to professionals or enrolling in an apprenticeship program to understand the business thoroughly.
2. Trucking Business
According to Fast Capital 360, starting a trucking company is profitable for both short and long-term investors.
Trucks can transport various goods from a manufacturer to a wholesaler and then to a retailer in any country.
Consider choosing a trucking business specialisation based on your interests, such as shed delivery, vehicle hauling, home improvement equipment, or cattle hauling.
Africans can also find rewarding work in the fuel, gasoline, and agricultural equipment transportation industries.
3. Courier Service on-Demand
Offering courier services is a viable business concept with lucrative potential.
With the rise of eCommerce due to the pandemic, door-to-door delivery of products and services has become required, necessitating the use of a courier service.
The concept is to fulfil any customer’s desire to purchase an item and have it delivered to a specified place for a price.
Before starting this business, make sure you have a price structure and parcel tracking options.
To produce significant revenue, beginners should try offering groceries, pizza, laundry, medical, beverage, and eCommerce courier services.
4. Shipping Services
Shipping services are among the top transportation and logistics company ideas for a regular income.
In a country like Nigeria, with more than 200 million population and import-dependent, importation business is a cash cow. Thousands of business owners import multimillion naira worth of goods daily, and more people are getting into the importation business despite the current forex crisis in Nigeria.
Offering a shipping service in a country that heavily relies on imported goods is a no brainer.
However, passion, attention, and practical tactics are required to succeed in this business. It would be best to conduct market research and seek mentorship from people already in this space.
5. Car Shuttle Service
A car shuttle service is a profitable transportation business idea if you start with a good plan.
This concept is a customised company plan that provides clients with requested or planned transportation services.
Purchasing or leasing vehicles, insurance, licensing, and renting office space are all necessary components of starting a car shuttle business, and Africans can benefit. Furthermore, you can operate as a lone trader or collaborate with a trust, firm, or even consider a partnership.