The African Used Truck Market: Trends and Forecast

1. Introduction

The used truck market has long occupied an influential role in industrial operations and development across Africa. Though it is important to account for regional business diversities on such a vast continent, traditional industries including agriculture and mining, as well as more rapidly emerging industries such as transportation and construction have benefitted from the role that trucks have had to play in fulfilling the growing needs of capitalism. This overview of the African truck market examines the current market, the driving forces behind market growth, and predictions for the future.

2.  Market trends

a)    Continental

At present, the demand for commercial trucks is rising in tandem with rapid industrial developments across the African continent. Trucks, specifically used, have become the favourable option as a result of lower prices and lower insurance premiums, combined with increasing freight requirements across a number of industries including construction and logistics.

b)   Regional

To break this down further, South Africa is credited as having one of the largest used truck markets on the continent, weighted towards mining and manufacturing and agriculture – which relies heavily on the transportation of goods. The more advanced nature of South Africa’s transport systems, including advanced road networks and well-placed ports, allows for a consistently advantageous environment for the used trucks trade.

This is not to argue that other African nations are not well equipped to accommodate the large scale shipping of used trucks. Based on 2020 data provided by Statista, the largest container port on the continent by output in TEUs (a measure of volume in units of twenty-foot long containers) is Durban in South Africa, followed by Mombasa (Kenya), Tema (Ghana), Lagos (Nigeria), Abidjan (Ivory Coast), Beira (Mozambique) and Walvis Bay (Namibia). GRC Trucks is an experienced supplier, shipping used trucks through some of the busiest ports across Africa, offering a smooth and efficient delivery.

3. Industry use

Used trucks are a crucial part of goods transportation across substantial distances, helping to support local economies across Africa. There are a number of industries which are flourishing as a result of the used truck industry – subsequently fuelling growth in the very industries that it has helped to grow – with construction as the dominant sector, posting the largest market share. This trend can be attributed to the increasing continent-wide focus on infrastructural development, despite regional nuances.

Construction

In the context of construction, used trucks are the primary component for lifting and transporting heavy duty materials such as concrete, sand and gravel, and completing long haul deliveries, often across borders. The most popular types of trucks in the construction industry, namely, but not limited to, flatbed and dump trucks are facilitating a burgeoning demand for used trucks, contributing to the overall growth of the used truck market.

4. Forecast

Continuing this momentum, the African used trucks market is predicted to grow at a CAGR (compound annual growth rate) of 5.6%, taking the period 2022-2027. This forecast presented by Markntel Advisors considers a multitude of projects centred around infrastructural developments across commercial, industrial and residential sectors, which are together accelerating the demand for used trucks. Indeed, there are a number of factors which coexist and work alongside each other in powering the expansion of the used truck market.

5. What are the current drivers of an expanding market?

a)    Affordability

Used trucks are often the preferred choice for many businesses operating in Africa, especially smaller enterprises seeking the most cost-effective option to minimise outgoings. This is perhaps the largest influence on African buyers.

b)   Infrastructural development

Advancements in infrastructural connectivity with the building of more roads – in turn facilitating an increase in cross-country trading – has further led to the expansion of these industries, bolstering the need for used trucks.

c)    Regional trading

Africa’s vast land mass allows for easy transportation across borders without the need to ship across water – which requires additional shipping costs. Combined with the lower price of used vehicles, trading between neighbouring countries makes for highly convenient business.

d)   Truck versatility

With a huge range of trucks available, from curtainsider (ideal for transportation), refrigerated (for preservation) and rigid (primarily used in construction/mining) trucks to name a few, used trucks continue to meet the requirements of both small and large scale businesses, despite the evolution of industries and emergence of new operations on the contintent.

e)   Economic opportunities

The economic impact of used trucks in Africa stretch far beyond the immediate impact they have on the business they have been purchased for. For example, local servicing companies or freelance drivers will also benefit from increasing numbers of used trucks in their locality. These services are essential for the used truck market and continue to supplement its continued success.

6. Why import used trucks from the UK?

Buying a used truck from the UK to Africa is a cost effective way to enrich your business, with the biggest market currently found on the east of the continent. The primary reason why the UK remains a top choice for shipping used trucks to Africa is that they provide durable and top quality vehicles at an affordable price. Not only that, but the delivery time is quick, despite the obvious distance from the UK.

As a trusted used truck exporter, GRC Trucks will handle the logistics, supplying you with a top-quality used vehicle, ready to go. With competitive pricing, GRC supply trucks to an extensive list of locations across Africa – shipping to the nearest port, along with the correct vehicle documentation to give you peace of mind.

Sources

• MarkNtel Advisors. 2022. Africa used trucks market research report: Forecast (2022-2027). [Online]. Available from: https://www.marknteladvisors.com/research-library/africa-used-trucks-market.html
• Statista. 2023. Selected container ports in Africa in 2020 based on throughput [Online]. Available from: https://www.statista.com/statistics/1380555/turnover-volume-largest-container-ports-africa/
• TechSci Research. 2023. Africa used truck market competition forecast & opportunities, 2028 [Online]. Available from: https://www.researchandmarkets.com/reports/4520297/africa-used-truck-market-competition-forecast-and-opportunities