DHL Group plans to invest around €500 million ($575 million) in healthcare infrastructure across Africa and the Middle East over the next five years.
- DHL plans to invest €500 million in healthcare infrastructure in Africa and the Middle East over the next five years.
- The investments aim to address growing demand for pharmaceutical logistics and involve key hubs in South Africa, Egypt, Kenya, Dubai, and Saudi Arabia.
- Focus areas include high-value, time-sensitive shipments like vaccines and stem cells, and ensuring product traceability.
DHL Group plans to invest around €500 million ($575 million) in healthcare infrastructure across Africa and the Middle East over the next five years.
The move is part of efforts to tap into growing demand, driven in part by China’s expanding presence in the region, according to Bloomberg.
Annette Naude, DHL’s head of healthcare for Europe, Middle East, and Africa (EMEA), said the logistics giant sees strong growth potential in Africa, with a focus on high-value, time-sensitive shipments such as vaccines, stem cells, and cryogenic materials.
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“We see America has come in and cut costs, but we do see other countries coming to the forefront and filling those gaps,” said Naude. “I went to China and met with several investors who are going to make investments on the African continent. Chinese investment in the region is really big.”
Africa, the world’s fastest-growing continent by population, is witnessing a sharp rise in demand for pharmaceutical products. According to Grand View Research, the continent’s pharmaceutical market is projected to generate $33.8 billion in revenue by 2030.
Focus on healthcare
As part of its strategy to tap into this growth, DHL is directing about 25% of its €2 billion global healthcare investment toward Africa and the Middle East, roughly €500 million over the next five years, said Annette Naude, head of DHL’s EMEA healthcare division.
The logistics giant’s regional healthcare operations span warehousing, packaging, and supply-chain management, with key hubs in South Africa, Egypt, Kenya, Dubai, and Saudi Arabia.
A major focus for DHL is ensuring that medical products, especially drugs and devices, are properly tracked from production to delivery. “We’ve built specialized warehouses that support ultra-cold shipments and allow for product serialization,” Naude explained, underscoring the company’s commitment to safety and traceability in the health-care supply chain.
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“When a doctor issues medicine at the bedside of a patient he has to trust and rely on the network that medicine has been transported through,” Naude said.
While tackling entrenched diseases like malaria remains a priority, Africa is also facing new healthcare challenges, said Annette Naude, DHL’s head of healthcare for EMEA.
One emerging trend is the growing demand for advanced insulin therapies from China, driven by their ease of use and longer-acting formulas that reduce the frequency of injections, a factor appealing to many governments across the continent.
Naude also highlighted a recent collaboration between China and DHL to establish a medical devices facility in Kenya. The plant now exports equipment to markets in the Middle East and Europe, showing Africa’s rising role in global health supply chains.
