Africa Logistics Properties eyes Sub-Saharan Africa expansion

Africa Logistics Properties (ALP) has successfully secured $60 million from global institutional investors to invest in modern and international standard grade logistics and distribution centers across major capital cities in East Africa and beyond. The company's CEO, Toby Selman, highlighted the development potential of logistics and supply chain real estate in Africa during a recent interview with CNBC Africa. Selman discussed how the current supply chain infrastructure in the region is inefficient, with go-down warehouses being the traditional storage solution. ALP aims to address these inefficiencies by offering modern warehouses that enable higher pallet densities, lower costs per unit, and increased operational efficiencies for both large companies and small and medium-sized enterprises (SMEs) in the market. By providing more efficient warehousing solutions, ALP aims to lower product costs for consumers and enhance overall supply chain operations. The company recently signed the country's largest-ever lease contract for a $60 million logistics and distribution warehousing project, signaling its commitment to revolutionizing the logistics sector in Africa. Selman emphasized that ALP's modern warehouses allow logistic operators and retailers to maximize space utilization, enabling them to operate more efficiently. These modern facilities offer significant cost savings compared to traditional go-down warehouses, with potential cost reductions of up to 30%. ALP recognizes the fragmented nature of the warehousing supply in the region and aims to address this challenge by providing centralized, modern facilities that offer greater efficiency and cost-effectiveness for businesses. The company's approach has been well-received by local governments and logistics companies looking to upgrade to more modern spaces. By offering access to international-standard facilities, ALP is creating opportunities for small and mid-sized local companies in Kenya to scale their businesses and compete on a global level. One key factor in ALP's strategy is the focus on location. The company has strategically selected sites in suburban areas with good transport links to minimize operational costs and improve access for both inbound and outbound logistics. By avoiding congested industrial areas like the Mombasa Road Traditional Industrial Area, ALP aims to enhance distribution efficiency and create a more seamless supply chain network in the region. ALP's success in securing funding and implementing innovative logistics solutions underscores the growing potential for logistics and supply chain infrastructure development in Africa. The company's expansion plans across Sub-Saharan Africa reflect a commitment to driving economic growth, enhancing operational efficiencies, and creating opportunities for businesses of all sizes. With a strong track record in Russia and Eastern Europe, ALP is well-positioned to lead the transformation of the logistics sector in Africa and catalyze sustainable development across the continent.