East Africa Logistics Market: Cold Chain Expansion, Warehousing Demand & Growth Outlook

According to IMARC Group's latest research publication, The East Africa logistics market size reached USD 25.1 Billion in 2025. Looking forward, IMARC Group expects the market to reach USD 37.8 Billion by 2034, exhibiting a growth rate (CAGR) of 4.67% during 2026-2034.

How AI is Reshaping the Future of East Africa Logistics Market

• Optimizing Fleet Management and Routes: AI-powered platforms like Leta are transforming logistics across Kenya, Tanzania, Uganda, and Rwanda. Leta handles over 10,000 deliveries daily and has facilitated 4.5 million deliveries by using smart algorithms that cut fuel consumption and reduce delivery times. Companies like Alliad Kenya use AI monitoring systems providing real-time data on driver behavior and vehicle health, improving route optimization by 25% while reducing operational risks.
• Streamlining Cross-Border Trade: Startups like Swiftway Shippers in Ghana processed over USD 44,000 in shipment value between May and September 2025 using automated platforms that integrate cargo pickup, customs clearance, and real-time tracking. AI is simplifying traditionally manual cross-border documentation, reducing errors and speeding up shipment handling across East African corridors.
• Attracting Strategic Investment: Leta secured USD 5 million in seed funding from Speedinvest and Google's Africa Investment Fund in March 2025, proving investor confidence in AI-driven logistics. The company reports fivefold revenue growth and is expanding across West Africa, demonstrating how AI solutions can scale rapidly across the continent.
• Reducing Port Dwell Times: Tanzania's median port dwell time of 5.4 days represents a major bottleneck costing businesses significantly. AI-enabled systems from companies like CTRLX.AFRICA are addressing these challenges through predictive maintenance and automated fleet coordination, helping cut cargo delays and reduce losses from damaged goods.

East Africa Logistics Market Trends & Drivers:

The East Africa logistics industry grows strongly, supported by people who invest in ports, railways, and highways in Kenya, Tanzania, and Ethiopia to improve shipping times and reduce costs while connectivity improves among East African countries such as Uganda, South Sudan, and Rwanda. Government and private sector invested in regional infrastructure. This included the Standard Gauge Railway, developed the ports of Mombasa, and expanded the ports of Dar es Salaam. These actions created a platform toward trade facilitation and regional integration. The importance given to supply chain efficiency is also seeing investment from foreign players and multi-national logistics service providers, creating a more competitive and capable sector.

Trade facilitation initiatives as well as the African Continental Free Trade Area (AfCFTA) are other potential avenues spurring the rapid growth of the East Africa logistics sector. Simplified customs procedures, reduced non-tariff barriers on cross-border trade and an increase in electronic platforms for trade documentation could reduce delays and improve efficiency. The EAC's electronic cargo tracking systems and harmonized regional trade agreements have improved intra-regional trade by important margins in recent years by lowering the cost of doing business and easing greater participation in global value chains, particularly in relation to agriculture, manufacturing and perishables. This in turn has enabled a greater flow of cargo, supporting increased market dynamism and resilience.

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East Africa Logistics Industry Segmentation:

The report has segmented the market into the following categories:

Model Type Insights:

• 2 PL
• 3 PL
• 4 PL

Transportation Mode Insights:

• Roadways
• Seaways
• Railways
• Airways

End Use Insights:

• Manufacturing
• Consumer Goods
• Retail
• Food and Beverages
• IT Hardware
• Healthcare
• Chemicals
• Construction
• Automotive
• Telecom
• Oil and Gas
• Others

Country Insights:

• Ethiopia
• Kenya
• Tanzania
• Uganda
• Sudan
• Rwanda
• Others

Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the key players.

Recent News and Developments in East Africa Logistics Market

• March 2025: Kenyan logistics startup Leta secured USD 5 million in seed funding led by Speedinvest, with participation from Google's Africa Investment Fund and Equator VC. The company, which has facilitated over 4.5 million deliveries and manages 7,400 vehicles, is expanding its AI-powered logistics platform across West Africa while partnering with major brands like KFC and East African Breweries Limited.
• April 2025: The African Development Bank Board of Directors approved a partial credit guarantee of USD 696 million to release USD 3.9 billion for the Central Corridor Standard Gauge Railway project, which will connect Tanzania, Burundi, and the Democratic Republic of Congo, creating new mining and agricultural corridors across East and Central Africa.
• June 2025: Maersk announced enhanced logistics services for East Africa's retail sector, highlighting the region's e-commerce market reaching USD 4.80 billion with retail delivery hitting USD 1.28 billion. The company is investing in smart warehousing solutions and integrated rail-ocean services along the Mombasa-Nairobi corridor to meet rising demand from urbanization and digital adoption.
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