DHL commits US$570M to boost operations in Africa and the Middle East

MEA – DHL Group has announced a major healthcare expansion plan worth €500 million (US$570 million) across Africa and the Middle East, focusing on warehousing, packaging, and the safe movement of sensitive medical products.

The move comes as the company seeks to capture new growth in both regions, where demand for healthcare solutions is growing steadily.

According to DHL, the investment is part of its global €2 billion (US$2.32 billion) healthcare budget, with 25 percent allocated to Africa and the Middle East.

Focus on healthcare supply chains

Annette Naude, head of healthcare for DHL in Europe, the Middle East and Africa, said the decision reflects shifting dynamics in global trade and investment.

“We see America has come in and cut costs, but we do see other countries coming to the forefront and filling those gaps,” she said.

She added that interest from Chinese investors is playing a growing role in DHL’s African plans. “I went to China and met with a number of investors who are going to make investments on the African continent. Chinese investment in the region is really big.”

The company is targeting time-sensitive deliveries such as vaccines, stem cells, cryogenic shipments, and insulin. “Getting technologically advanced insulin from China is gaining traction among governments, both because of ease of use and for its longer-acting formulas that require injecting the drug less often,” Naude noted.

DHL will also focus on tracking and safety across its network. “Making sure drugs and medical devices are properly tracked from production to destination is a focus area,” Naude said.

“This means having specialised warehouses where we cover ultra-cold shipments, and we cover serialisation.”

She also raised concerns about rising health threats in Africa. “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,” she explained, citing malaria as a pressing issue.

Logistics ties and growth corridors

DHL’s announcement aligns with broader shifts in regional and global trade. Trade forecasts show Sub-Saharan Africa is set to grow at an average annual rate of 5.3 percent between 2024 and 2029, placing it among the fastest-growing trade regions globally. This marks a sharp improvement from the 0.8 percent growth rate recorded between 2019 and 2024.

In response to this expected growth, DHL and China recently agreed to establish a medical devices facility in Kenya. The new plant will export to the Middle East and Europe, further connecting the African continent to rising global supply routes.

Dubai World Central (DWC), the growing logistics hub in the UAE, will likely play a central role in this expansion. Its location between Asia, Africa, and Europe positions it well to serve rising trade flows.

John Pearson, CEO of DHL Express, commented during the recent Geographic Tailwinds Gulf Tour in Dubai South, “Trade is like water, it will always find its way.”

With new trade corridors forming and a steady rise in intra-African trade under frameworks like the AfCFTA, DHL’s investment in healthcare logistics marks a timely shift to meet real and rising demand.

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