For decades, warehouses across much of Africa have been viewed primarily as functional cost centres - simply places to store stock, often under-invested and invisible to boardroom strategy. That mindset is changing globally, and supply chain industry body SAPICS says that African businesses risk falling behind if they fail to recognise that warehouses today are strategic investments that enable growth, resilience and competitiveness.

As geopolitical tensions, nearshoring and shifting trade dynamics push global companies to diversify sourcing and manufacturing, Africa has an opportunity to position itself as a viable regional and global hub. However, this opportunity will only be realised with investments in ports and transport corridors, as well as in modern, efficient, sustainable skills-powered warehousing.

Warehousing has evolved from a passive function to a critical enabler of supply chain performance. Decisions about warehouse location, capacity and technology now shape distribution networks, determine speed to market and influence flexibility and resilience in the face of disruption. In a world of just-in-time and increasingly hybrid resilience-focused logistics models, omnichannel retail and complex cross-border supply chains, the warehouse has become a strategic lever. Warehouse sustainability is critically important in Environmental, Social, and Governance (ESG) frameworks, as it directly impacts carbon footprints, operational costs and corporate reputation.

According to SAPICS, warehouses that do not function optimally can undermine the entire supply chain. Effective warehouse management ensures the availability of the right goods, in the right quantity, at the right time; the safe and secure storage of products; and their delivery in perfect condition. When warehouses underperform, customer satisfaction, cash flow and business reputation are all at risk.

This pressure is intensifying as consumer expectations rise. Customers increasingly demand customised products, full product transparency and ever-faster delivery. These demands expose inefficiencies in warehouse layout, processes, systems and skills - inefficiencies that many African operations still struggle to overcome.

Market data underscores the growing importance of warehousing. Knight Frank’s Africa Industrial Market Dashboard shows that in key markets such as Johannesburg, Nairobi and Lagos, occupancy rates for modern warehouses have climbed to around 85%, up from 78% in the first half of 2023. Prime warehouse rentals in Johannesburg have risen by 7% over the same period, this report found. This signals strong demand, but also highlights supply constraints in quality, fit-for-purpose facilities.

The strategic importance of warehousing is also reflected globally. In the DP World Global Trade Observatory Annual Outlook Report 2026, logistics executives ranked “warehousing and logistics hubs” as the operational area in which infrastructure investment is needed most. This reinforces the view that warehouses are no longer peripheral infrastructure, but central to trade competitiveness.

One of the most underestimated pressures on warehouses is reverse logistics. With the rapid growth of e-commerce across Africa, return volumes are rising sharply. Globally, up to 40% of goods bought online in some categories are returned, compared with just 5% to 10% for in-store purchases. SAPICS notes that these higher return rates can require up to 20% more warehouse space and labour to handle inspections, repackaging, refurbishment or disposal.

For African warehouses that were not designed with reverse flows in mind, this creates congestion, higher costs and operational complexity. Smart warehouse design, flexible layouts and digital tracking systems are increasingly essential to manage both forward and reverse flows efficiently.

Technology alone will not close Africa’s warehousing gap. SAPICS emphasises that skilled people are critical to unlocking value from investments in automation, AI-enabled warehouse management systems and data analytics. Today’s warehouse managers require a blend of operational expertise, digital literacy, problem-solving skills and an understanding of sustainability.

To address this skills gap, SAPICS offers targeted education for warehouse employees, supervisors and managers. Its flagship Basic Stores & Stock Control (BSSC) course is widely regarded as a foundation for sound warehouse management, equipping learners with practical knowledge that improves efficiency, accuracy and control on the warehouse floor.

When it comes to supply chain sustainability, SAPICS advises that the warehouse is an important, impactful place to make changes. “The drive for greener, sustainable supply chains often puts the spotlight on factors like raw materials and transport, but reducing the energy used in factories and warehouses may be more easily achievable and will have a substantial impact on an organisation’s carbon emissions.

“Supply chain sustainability leaders are increasingly citing the energy used in their facilities as one of the best levers supply chains have to reduce their emissions. While material and product use are significant contributors, supply chains usually have more control over the decisions concerning energy sourcing for their facilities.”

In South Africa and regions facing energy constraints and rising electricity costs, these investments are not just environmentally responsible, but essential.

Recognising the imperative to drive sustainability in supply chains, SAPICS’s education offerings also include a masterclass in the best practices and solutions to build a sustainable supply chain – provided in partnership with United States-based international supply chain management body ASCM (The Association for Supply Chain Management) – as well as ISCEA’s (the International Supply Chain Education Alliance’s) Certified Sustainable Supply Chain Professional programme.

Warehousing in Africa is at a crossroads, SAPICS asserts. Rising demand, changing trade patterns and evolving consumer expectations present challenges and opportunities. “Warehouses that remain under-invested risk becoming bottlenecks that limit growth. Those that are smart, sustainable and skills-powered can become powerful catalysts for economic growth, business success and job creation.”