One of the most notable trends shaping Africa’s economy in 2025 is the rapid expansion of its industrial and logistics sector. Occupancy in modern warehouses has climbed to 83% in the first half of the year, up from 75% a year earlier — marking a 10.7% year-on-year increase.
According to Knight Frank’s Africa Industrial Market Dashboard (H1 2025), the sector is reaching historic highs, powered by the boom in e-commerce, the growth of agro-industrial activity, and rising regional self-sufficiency.
Boniface Abudho, Research Analyst at Knight Frank Africa, explains, “This surge reflects the growing maturity of Africa’s industrial real estate as a core investment asset class, while underscoring the persistent supply-demand imbalance for Grade A facilities, particularly across urban hubs and trade corridors”.
E-COMMERCE & AGRO-INDUSTRIALISATION BOOM
The Knight Frank report projects Africa’s online retail market to surpass US$ 75 billion by 2025, intensifying demand for logistics infrastructure, last-mile delivery, and climate-controlled storage facilities. Nigeria’s e-commerce market is estimated at US$ 8.53 billion in 2025, with an anticipated CAGR of 11.8% through 2033. Meanwhile, South Africa’s domestic e-commerce market, valued at US$ 35.23 billion in 2024, is forecast to more than double to US$ 74.79 billion by 2033.
Elsewhere, according to Knight Frank, agriculture accounts for 32% of Africa’s GDP and provides livelihoods for over 65% of the population. Agro-processing is rapidly gaining traction, with the African Development Bank estimating that improved value addition could raise raw value capture by as much as 600% in sectors such as cotton-to-textile. In Nigeria, the US$ 538 million Special Agro-Industrial Processing Zones (SAPZ) programme is expected to enhance agricultural productivity by over 60%, while significantly driving demand for cold storage and agro-logistics facilities.
SUSTAINABILITY AND INTRA-AFRICAN TRADE
Knight Frank highlights that ESG compliance is shaping occupier choices, with Cold Solutions Kenya’s Tatu City facility becoming the first in Africa to achieve LEED Gold certification. In South Africa, corporates such as Woolworths have invested nearly US$ 1 million in clean energy solutions for distribution centres, while Botswana saw the launch of locally assembled electric vehicles (EVs), signalling a pivot to clean-tech industrialisation.
Mark Dunford, CEO of Knight Frank Kenya, noted, “Sustainability is now a defining feature of new industrial developments. Occupiers are increasingly prioritizing ESG-compliant spaces that deliver operational efficiencies and lower energy consumption. In response, developers are embedding green design principles into both speculative builds and bespoke, build-to-suit projects”.
The report also highlights that Nigeria’s Dangote Petroleum Refinery, the largest in Africa, is reshaping regional trade flows with a 650,000 barrels/day capacity and a new 1.6-million-barrel storage facility in Namibia. Although Intra-African trade currently accounts for just 14.4% of exports, compared to 60% in Europe (UNCTAD), infrastructure upgrades and policy reforms under the AfCFTA are expected to help close this gap.
