In August 2025, DHL Supply Chain launched an electric vehicle (EV) pilot in collaboration with Unilever and Volvo Trucks in South Africa, marking a new milestone in advancing sustainable logistics in Africa.
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DHL Supply Chain is strengthening its transport-led logistics capabilities in South Africa following approval to acquire three companies from the Vital Group, a move aimed at enhancing distribution networks and supporting customer growth across the country’s diverse retail landscape.
The deal, cleared without conditions by the Competition Tribunal earlier this month, includes Vital Distribution Solutions, Staffing Logistics and Vital Fleet. The businesses will continue operating as subsidiaries of DHL Supply Chain, maintaining their existing customer relationships and regional presence.
DHL forms part of a global transport and logistics group offering a broad range of third-party services across multiple sectors. Its activities span international and domestic express delivery, import and export services, e-commerce solutions and specialised services such as on-demand delivery, hazardous materials handling and customs clearance.
The target firms operate in related segments of the logistics and support services value chain. Vital Distribution offers road-based transport, distribution and warehousing services. Staffing Logistics provides temporary employment services to the transport, retail, hospitality and cleaning sectors. Vital Fleet offers fleet rental and management services.
The acquisition significantly expands DHL’s operational scale in South Africa, adding capacity in road transport, warehousing, fleet management and workforce solutions. It also provides immediate route density and local market agility, capabilities that would take considerably longer to develop organically.
South Africa’s retail sector is highly fragmented, spanning formal retail chains, wholesalers, independent stores and township markets.
DHL said a stronger, well-integrated distribution network will enable businesses to navigate these varied channels more effectively, improving product availability and ensuring more consistent service delivery.
Bremer Pauw, chief commercial officer for the Middle East and Africa and managing director for Africa at DHL Supply Chain, said Vital has built a highly capable business with strong customer relationships, entrepreneurial energy and real market reach.
“This acquisition gives our customers, and Vital’s customers, a stronger platform from which to grow,” Pauw said.
“By bringing that together with DHL’s scale, systems and broader supply chain capabilities, we are creating a platform that helps customers get their products into more outlets, more consistently, across every relevant retail tier.”
Beyond commercial benefits, the transaction also supports DHL’s sustainability ambitions. Increased route density and improved network design are expected to reduce empty trips, enhance vehicle utilisation and create more viable pathways for investing in lower-emission fleets.
The company said these efficiencies will help customers track and achieve measurable decarbonisation outcomes over time.
The acquisition aligns with DHL Group’s broader strategy to expand its footprint in Sub-Saharan Africa. Announced in 2025, the group’s €300 million regional investment plan aims to strengthen logistics infrastructure, support job creation and position Africa more prominently in global trade flows.
South Africa remains central to that vision, serving as a key logistics hub and gateway for regional trade. By deepening its capabilities in the country, DHL is reinforcing its role in enabling supply chain development and facilitating access to markets across the continent.
BUSINESS REPORT