Balogun Abayomi, a young dispatch rider, would weave his motorcycle through traffic across Lagos city, balancing a stack of parcels strapped tightly behind him. His phone buzzes constantly, new delivery requests, customer calls, GPS updates.
“If I don’t deliver fast, I don’t earn,” he says, glancing at the clock as he races against time.
Just a few years ago, a graduate of Criminology and Security Studies in Nigeria, he was unemployed. Today, he is part of a rapidly expanding ecosystem powering Africa’s digital economy, and he is not alone in his ordeal, a number of energetic young Africans are venturing into this to turn the tides.
Across major African cities, from Lagos to Nairobi and Accra, this scene has become increasingly common. As more consumers shop online, a new class of businesses, last-mile delivery services, has emerged to bridge the gap between digital orders and physical fulfillment.
What used to be a backend logistics function is now one of the most critical, and lucrative, segments of Africa’s e-commerce value chain.
“E-commerce doesn’t succeed or fail online, it succeeds or fails at the point of delivery,” Balogun noted, and that point is the last mile, and in Africa, it is where the real business opportunity lies.
Situation Report
Africa’s e-commerce sector has experienced steady growth over the past decade, driven by increasing internet penetration, mobile phone adoption, and a youthful population eager to embrace digital services.
However, while the front-end of e-commerce, apps, payments, and online marketplaces, has evolved rapidly, the back-end logistics infrastructure has struggled to keep pace.
Last-mile delivery, defined as the final step of getting goods from a distribution hub to the customer, has become the most complex and expensive part of the e-commerce process. In Africa, this challenge is amplified by unique structural issues, including poor addressing systems, traffic congestion, and reliance on cash-on-delivery payments.
Yet, it is precisely these challenges that have created opportunity. The inefficiencies in delivery systems have opened space for new business models, from motorcycle dispatch services to tech-enabled logistics platforms.
As one industry insider observed, “In Africa, logistics is not just a support function, it is the business itself.”
The Market Size
Africa’s e-commerce market continues to expand, with projections suggesting it could reach tens of billions of dollars in value within the decade, driven by increasing digital adoption and consumer demand.
At the heart of this growth is logistics. Without efficient delivery systems, online commerce cannot scale. This has positioned last-mile delivery as a critical enabler of the entire ecosystem.
Urbanization trends further reinforce this opportunity. With Africa’s population expected to reach 2 billion by 2050, and over 60% projected to live in cities by 2030, demand for delivery services is set to surge significantly.
However, infrastructure gaps remain significant. In sub-Saharan Africa, only about 35% of rural populations live near all-season roads, limiting access and increasing delivery costs.
These constraints highlight a paradox, while the market is growing rapidly, the systems required to support it are still underdeveloped, creating a fertile ground for innovation and investment.
The Opportunities
The last-mile delivery sector in Africa is rich with layered opportunities, ranging from small-scale operations to large logistics platforms.
At the entry level, individuals can operate as independent dispatch riders, leveraging motorcycles to deliver parcels within urban areas. This model, often driven by gig platforms, has created employment for thousands across major cities such as the likes of Balogun.
Motorcycles remain the preferred delivery method due to their ability to navigate congested roads and reach difficult locations efficiently and timely.
Beyond individual operations, small logistics companies are emerging to serve businesses directly. These firms provide delivery services for e-commerce platforms, restaurants, pharmacies, and retailers, often building niche expertise in specific sectors.
At a higher level, technology-driven logistics startups are transforming the industry. By integrating GPS tracking, route optimization, and digital payment systems, these companies are improving efficiency and customer experience. Importantly, last-mile delivery is no longer just about moving goods, it is about enabling commerce itself.
Oloruntoyin Ibrahim, an e-commerce analyst captured this when he said, “Delivery is the infrastructure of digital trade. Without it, everything else collapses.”
Major Players
The African last-mile delivery landscape is shaped by a mix of large e-commerce platforms, specialized logistics companies, and independent operators.
Pan-African platforms like Jumia have invested heavily in building logistics networks, combining in-house fleets with third-party partnerships and pickup stations to reach customers across multiple countries.
At the same time, a growing number of logistics startups are focusing exclusively on delivery services, offering faster and more flexible solutions tailored to local conditions. These companies often rely on decentralized networks of dispatch riders, enabling them to scale quickly without heavy infrastructure investments.
Despite the presence of these players, the market remains fragmented. Demand continues to outstrip supply, particularly in rapidly expanding urban areas and underserved regions.
This fragmentation creates room for new entrants; startups and solos alike, who can deliver reliability, speed, and cost efficiency.
Pitfalls to Look Out For
While the opportunities are significant, the last-mile delivery business in Africa is not without its challenges. One of the biggest issues is operational complexity.
Unlike developed markets with standardized addressing systems, African cities often rely on informal or descriptive addresses, making deliveries time-consuming and error-prone. Traffic congestion in major cities further complicates operations, reducing delivery efficiency and increasing costs.
Additionally, the continued reliance on cash-on-delivery introduces financial risks, including failed deliveries and payment disputes. Security concerns also pose challenges in some regions, with incidents affecting delivery operations and increasing operational costs.
From a business perspective, unit economics remain tight as Oloruntoyin candidly noted, “You can have volume, but if your costs are not controlled, you will not survive.”
How to Launch (Including Legal Compliance)
Starting a last-mile delivery business in Africa requires a combination of operational strategy, technology, and local knowledge. The first step is identifying a target market, whether individuals, small businesses, or e-commerce platforms.
Understanding customer needs is critical, as delivery expectations vary widely across regions. Next, entrepreneurs must establish their operational model, and this could involve building a fleet of riders, partnering with independent dispatchers, or leveraging digital platforms to match demand and supply.
Registering the business with relevant authorities and complying with transportation and logistics regulations is essential. In Nigeria, this may involve business registration and adherence to local transport guidelines.
Technology plays a crucial role in scaling operations. GPS tracking, mobile apps, and payment systems help improve efficiency and customer experience.
Farhan Nasirudeen, a startup founder noted, “If you are not using technology, you are already behind.”
Additionaly, success in this sector depends heavily on reliability. Consistent delivery performance builds trust, which in turn drives repeat business and growth.
Call for Investors
For investors, Africa’s last-mile delivery sector represents a critical entry point into the continent’s growing digital economy. As e-commerce expands, logistics infrastructure will become increasingly valuable.
Companies that can solve delivery challenges at scale stand to benefit from sustained demand and strong growth potential. The sector also offers opportunities for innovation, particularly in areas such as route optimization, electric delivery vehicles, and drone technology.
With global attention shifting toward emerging markets, Africa’s logistics sector is attracting increasing interest.
“If you want to bet on African e-commerce, you have to bet on logistics. That’s where the real bottleneck, and the real opportunity, is,” concluded Olohuntoyin.
Caveat: Do Your Own Research
This article is for informational purposes only and does not constitute financial or investment advice. Readers are encouraged to conduct independent research and consult relevant professionals before making business or investment decisions.
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