DHL CEO Ken Allen while on a business visit to the country said Kenya will play a major role in the general growth of business and investment on the continent.
“Africa is the last bastion for business globally and over the next few years, will prove its potential as a stable, lucrative continent for international commerce,” Allen said.
He however said infrastructure development in Kenya and the continent must be prioritised if the growth is to be realised.
“Current road conditions are responsible for approximately 40 percent of transport costs in coastal countries and 60 percent in landlocked countries and we know that transport costs can make up 50 to 75 percent of the actual retail price of goods in countries such as Malawi, Rwanda and Uganda,” he said.
He emphasised that for Africa to become competitive, this situation needs urgent review, with a strong focus on the developments of the transport infrastructure.
The company is currently transporting over 80 percent of its cargo by air, saying that this can be between three and nine times more expensive than road or rail.
The CEO is in Sub-Saharan Africa to visit countries like Zambia, Kenya, Ethiopia and South Africa.
“Much has been said around Africa’s potential and, while it currently only contributes 3 per cent of the global Gross Domestic Product (GDP), it is still the fastest growing continent. We have seen positive economic indicators from countries across Sub-Saharan Africa, Nigeria, Cote d’Ivoire, Ghana, Kenya, Mozambique and Uganda to name a few and I believe we will continue to see Africa improve its standing on the international business stage,” Allen said.