High Risk, High Reward in West Africa

By Liesl Venter

Project professionals from companies including Maurilog, IMGS Group, Breadbox Group and DB Schenker offer an in-depth look at opportunities and challenges for project activity in West Africa.

From Issue 2, 2025 of Breakbulk Magazine.

A resurgence of breakbulk and project cargo activity is evident in West Africa, with projects restarting after years of slowdown. This renewed momentum is driven by increased investor confidence, infrastructure development and a growing need for industrial expansion.

“There are several projects currently underway that illustrate the positive developments in the breakbulk and project cargo sector,” said Dominik Keller, head of global development at the Swiss-based Fracht Group, which has extensive operations across the African continent.

“We see investments in renewable energy, offshore oil exploration and large-scale mining operations. There is also a rise in the construction of processing plants for raw materials across many West African countries.”

The optimism about West Africa is tangible. It comes on the back of years of geopolitical instability and conflict, but confidence is growing. Chinese state-owned Baowu Steel Group, the world’s largest steel producer, has indicated it will invest US$6bn in Guinea’s Simandou iron ore project, considered the world’s largest untapped iron ore deposit, where two mines are set to produce 30 million tons (Mt) each in the first year of operation.

Guinea, also the world’s largest bauxite exporter, has faced challenges in launching the project due to political instability, high costs and complex logistics. The development requires 600 kilometers of railway and a new port to facilitate ore exports from the country’s southeast. Speaking at the recent Investing in African Mining Indaba in Cape Town, Minister of Mines and Geology Bouna Sylla stated that initial shipments are expected as early as the first quarter, 2026.

Participating in a panel discussion at February’s Breakbulk Middle East event in Dubai, Mohamed Abdellahi Yaha, owner and chairman of Maurilog, highlighted the growing investments in renewable energy projects in Mauritania. The country is now considered one of the best locations globally for hydrogen project development.

Rafael Vicens, head of global projects and industry solutions MEA at DB Schenker, who moderated the discussion, noted that gold production continues to expand in Ghana and Mali as prices reach an all-time high.

Shujjat Alikhan, vice president at IMGS Group, noted that the oil and gas sector remains a largely untapped opportunity in West Africa. “One could call it the “Ivy League” of oil and gas, alongside Saudi Arabia, the UAE and Oman,” he said. Liberia alone has ten unexplored oil blocks, highlighting the region’s vast potential.

Côte d’Ivoire is expanding and modernizing its transport infrastructure by building roads, bridges and port facilities to enhance trade and logistics efficiency.

Developments in Nigeria are also inspiring optimism. According to Johan Thuresson, managing director at GAC Nigeria, investments in the Lekki Deep Sea Port will significantly upgrade the country’s port infrastructure. It has prompted similar developments at Badagry Creek in Lagos.

“Another major project is the Dangote Refinery, which could reshape Nigeria’s potential as a major crude oil processor,” he told Breakbulk. “Once fully operational, it will be able to process up to 650,000 barrels per day, making it competitive in the United States and 50% larger than the biggest refinery in Europe.”

The refinery, which has been opening in phases since December 2023, is a significant catalyst for the region, as it could reshape tanker trades. “Nigerian oil is famed for its high quality compared to other markets, so exporting this amount of valuable cargo daily could be a major boost for shipping lines looking to access the country.”

Sourcing Shift

Joris Jan Bakker, CEO of Breadbox Group, says that while regular shipments of breakbulk cargo have continued to West Africa, there is renewed interest in the region, particularly with significant mining countries like Mali undergoing political change.

“Major oil and gas players have reinforced the market, with multiple mobilizations and demobilizations taking place throughout the year across the region. There has been a noticeable shift in shipping patterns, with equipment sourcing moving from the West to China and the Far East,” he said.

“This shift can largely be attributed to China now financing many construction projects. However, this does not mean the sector is stagnant for all carriers. For projects like the long-awaited launch of the new port in Dakar, Senegal and even the EU-U.S.- backed Lobito Corridor project, hopes are high that West Africa is picking up.”

He said that while improvements in infrastructure have not always been fast, change is being seen across the region. ‘We see ports regularly dredging as part of their maintenance efforts. This is particularly evident at Nouakchott Port in Mauritania and Kamsar Port in Guinea. There is also an increasing number of terminals being operated by multinational players, all of whom are investing in their respective terminals.’”

Confidence in West Africa’s potential is high. “It’s difficult to overstate the opportunity here,” said Alikhan. “There’s more positivity about West Africa than almost anywhere else. Looking closer, you realize this region has an economy of over 400 million people, expected to reach 700 million by 2034. No matter the sector - mining, oil and gas, renewables, or construction - demand for large-scale logistics and transport is inevitable.”

Mitigating the Risks

However, the region presents significant logistical challenges. Christian Nielsen, group logistics manager at OBT Shipping Group, emphasized the importance of understanding Africa’s complexities. “Africa is still unknown to many and each country is different,” he said.

“There are major infrastructure issues - for example, the rainy season creates conditions that logistics operators from other parts of the world may not be used to. Some supply chains require transporting goods thousands of kilometers. This demands innovation and adaptability.”

Alikhan added that risk management was key to success in West Africa. “It ultimately comes down to a company’s risk appetite. You must manage currency risk, capital risk and people risk. Above all, you need local partners to facilitate market entry and efficient operations.”

According to Keller, macroeconomic factors, such as currency fluctuations and political stability, must also be considered. “Exchange rate volatility impacts import costs, while political uncertainty can lead to project delays. That said, we’re seeing greater stability and the investment climate is becoming more favorable.”

From a shipping perspective, Bakker said port congestion remained an issue. “Seasonal weather changes often trigger it, but delays in berthing are quite common in many of the ports, especially during the rainy season, which occurs between May and October. Our ships often wait at least three to four days for a free berth. This makes accurate operational planning difficult, and the situation can become particularly challenging when handling rain-sensitive cargoes.”

Another concern is storage capacity in various countries. “This capacity, as well as the availability of trucks, determines the lot sizes on sailings,” he said. “For larger cargoes, we use Handysize or Handymax vessels. The limitations on draft at West African ports remain our main challenge and a restricting factor in this regard.”

For Yaha, one of the biggest stumbling blocks in African logistics is the continent’s reputation. “Many people outside Africa think they understand the challenges based on its reputation, but the reality is far more complex. Local partners are a key factor for success,” he said.

Piracy Threat

The elephant in the room regarding the region is, of course, piracy. The Gulf of Guinea, in particular, is notorious for attacks on vessels. “It is still a challenge,” said Bakker. “Although the number of attacks has somewhat decreased in recent years, the threat of piracy and theft persists. Owners and crews are understandably cautious.”

Thuresson said that while there had been no attacks or robberies in the past two years in Nigeria, incidents had occurred in adjacent waters. “Theft is still common onshore in the trucking business. That is partly why inland depots have not taken off. Most shipping lines consider it too risky to accept consignments for them.”

According to Bakker, the practice of armed guards on board or escort boats continues, albeit as an expensive solution - especially when navigating through multiple Exclusive Economic Zones (EEZs) en route to ports like Douala, as the escorts are often not allowed to cross from one EEZ to another.

“Close collaboration with governments, particularly on capital-intensive projects, as well as armed escorts for high-value shipments, are ways to mitigate security risks,” said Keller. “Strengthened security protocols and partnerships with law enforcement agencies are also being implemented to ensure safer transport routes.”

West Africa is not a region to enter without first developing strong local partnerships, understanding the regulatory landscape and investing in robust risk management strategies. “If there is a country you’re interested in, you have to go and see it for yourself - experience firsthand how it works. Sometimes, it requires stepping back to understand what you’re dealing with fully. It’s crucial to meet with stakeholders on the ground,” said Nielsen.

Yaha agrees that nothing beats conducting your own due diligence on the ground. “There are opportunities, but you need to understand the market you are operating in and the local legislation. It’s crucial to connect with people in-country, hire good staff and take a systematic approach to entering and growing in each market.”

Keller said ongoing infrastructure improvements, increasing industrialization and an evolving investment landscape will continue to drive sustained growth in the region. “Companies that are proactive in understanding local market dynamics - from an individual country perspective – and can adapt to logistical challenges will be well-positioned to capitalize on the opportunities arising from this economic boom.”

Rafael Vicens joined us in the Breakbulk Studios after the session for more insight and behind-the-scenes perspectives:



TOP PHOTO: A member of Maurilog’s project team oversees the handling of breakbulk in Mauritania. CREDIT: Maurilog
SECOND: Mohamed Abdellahi Yaha speaks at Breakbulk Middle 2025. CREDIT: Spaceplum
THIRD: Christian Teglskov Nielsen speaks at Breakbulk Middle 2025. CREDIT: Spaceplum