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Africa|DIGITALISATION|Ghana|Service|transport|Solutions|Infrastructure
Africa|DIGITALISATION|Ghana|Service|transport|Solutions|Infrastructure
africa|DIGITALISATION|ghana|service|transport|solutions|infrastructure

Africa’s last-mile market set to double by 2030

20th January 2023

By: Irma Venter

Creamer Media Senior Deputy Editor

     

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The African last-mile delivery market was valued at $1.14-billion in 2021.

By 2030, this is expected to reach $2.35-billion, expanding at an annual compound growth rate of 8.45% between 2022 and 2030, says Frost & Sullivan consultant Nomvo Kasolo.

For Africa, home to 1.3-billion people, a population that is expected to grow to 2-billion by 2050, the last-mile delivery market presents significant opportunities going into the future.

African cities are seeing extraordinary growth, with more than 60% of Africans expected to live in cities by 2030, notes Kasolo.

“With this comes higher demands for efficient supply chains into growing urban areas and the remaining rural space, in order to avoid expansion of the rural-urban divide.”

In 2021 alone, 21 transport startups were established in Africa, addressing issues such as digitalisation and last-mile delivery solutions.

Kasolo says the last-mile sector can be segmented into categories by product, industry, sales channel, delivery type, service speed and geography.

“Based on current trends, players with the fastest turnaround times across all categories will enjoy the largest growth.

“The waiting time for consumers has been cut from the previous five to six days, to one-day or same-day delivery.”

Kasolo says this shift has created many opportunities to establish efficient sales channels.

Digital communication platforms that allow for easy returns, exchanges, and increased connectedness between client and vendor are gaining ground, including the likes of Kobo360, WumDrop, Pargo and so forth.

“Aside from newer entrants, larger industry giants are also creating innovative models to reduce shipping costs and ride this opportunity wave,” she notes.

“Regional expansions of newer entrants and established players are happening in Egypt, South Africa, Nigeria, Côte d’Ivoire, Tunisia, Ghana, Ethiopia, Zambia, Kenya, and other markets.

“With most of the regions, the growth needs to be met by additional investments in key infrastructure (physical and digital) to ensure long-term solutions.”

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

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