• Occupancy of modern warehouses in Africa rose to 83% in H1 2025, up from 75%.

• Growth driven by e-commerce, agro-industry, and push for regional self-sufficiency.

• South Africa, Egypt, and Nigeria remain top hubs for industrial real estate.

Africa’s industrial and logistics real estate market is expanding rapidly, with occupancy of modern warehouses reaching 83% in the first half of 2025, compared with 75% a year earlier. That marks a 10.7% year-on-year increase, according to a report released on September 2, 2025, by Knight Frank.

The report, titled Africa Industrial Market Dashboard – H1 2025, said demand continues to outpace supply, particularly for Class A warehouses. These are high-functionality facilities with ceilings above 9.3 meters, floor loads exceeding 5 tons per square meter, and maneuvering yards of over 35 meters.

Major urban centers and trade corridors remain the hotspots for demand, as businesses seek modern logistics space to store raw materials, semi-finished, and finished goods, and to carry out production and distribution operations.

E-commerce, agriculture, and self-sufficiency drive growth

The market is being fueled by the fast expansion of e-commerce, the growth of agro-industry, and Africa’s drive to cut import dependence. The continent’s e-commerce market is expected to exceed $75 billion by 2025, placing pressure on distribution networks and increasing demand for climate-controlled warehouses and last-mile delivery facilities.

Nigeria’s online retail market is valued at $8.53 billion in 2025 and projected to grow at a compound annual rate of 11.8% through 2033. In South Africa, e-commerce is forecast to more than double from $35.23 billion in 2024 to $74.79 billion by 2033.

Agriculture, which contributes about 32% of Africa’s GDP and employs more than 65% of its population, is another major driver. The African Development Bank notes that improving value addition in sectors like cotton and textiles can boost captured value by up to 600%. In Nigeria, the Special Agro-Industrial Processing Zones program, requiring $538 million in investment, is expected to lift agricultural productivity by over 60% and sharply increase demand for cold storage and agrologistics infrastructure.

Africa’s pursuit of self-sufficiency is also reshaping logistics. The expansion of Nigerian billionaire Aliko Dangote’s oil refinery into other African markets illustrates this shift. With capacity set to reach 650,000 barrels per day, the refinery is building storage tanks in Namibia that can hold at least 1.6 million barrels of gasoline and diesel, serving markets in Botswana, Zambia, Zimbabwe, and Namibia. This is expected to reshape regional trade flows in energy, boost intra-African trade under AfCFTA, and reduce reliance on external markets. Currently, only 14.4% of Africa’s exports are traded within the continent, compared with over 60% in Europe and 58% in Asia, according to UNCTAD.

Leading and emerging hubs

The report highlights South Africa, Egypt, and Nigeria as the main hubs for industrial and logistics real estate in Africa. South Africa benefits from a strong manufacturing base, Egypt from its proximity to Europe and the Middle East, and Nigeria from its large industrial companies.

Kenya, Ethiopia, Ghana, Zambia, and Tunisia are also emerging as important players in the sector’s growth.