After a 20-year relationship, Panalpina will acquire its Egyptian freight forwarding, customs clearance and logistics agent, Afifi, as it continues its strategic expansion in growth economies.

“The acquisition will not only allow us to substantially increase business in our home market but also across borders, as we will now be able to offer true end-to-end solutions to our international customers,” says Mohamed Afifi, Jr., designated managing director for Panalpina in Egypt.

Egypt has a large population and a sizeable middle class, in addition to being the regional base for numerous international companies. Political reforms are under way to strengthen the economy and improve the investment climate. Its freight forwarding market is very fragmented.

While all major industries are represented in the country, the greatest growth potential lies in the oil and gas, capital projects, telecoms, automotive and healthcare sectors. The government has stepped up efforts to encourage the exploration of oil and gas, in particular in the Nile delta. Egypt, with a population of almost 90 million people, is the largest non-OPEC oil producer in Africa and the second-largest dry natural gas producer on the continent.

Egypt plans to build an international industrial and logistics hub near the Suez Canal in conjunction with the current scheme to dig a second canal that will facilitate two-way traffic of larger ships.