Africa Last Mile Delivery Market Outlook (2021-2031)

The Africa last mile delivery market was valued at approximately USD 5,145.15 million in 2024 and is projected to grow to about USD 8,932.50 million by 2031, with an expected compound annual growth rate (CAGR) of 8.2% from 2025 to 2031.

Africa Last Mile Delivery Market Analysis:

The booming e-commerce industry, increased mobile internet penetration, urbanization, and a rising middle class are driving the demand for last mile delivery in Africa. However, despite its potential, the sector faces various challenges related to infrastructure limitations, security concerns, and operational inefficiencies. Nigeria boasts one of the largest internet user bases in Africa, with over 150 million users and a mobile penetration rate exceeding 90%. This high mobile and internet penetration has spurred a surge in online shopping and digital transactions, directly boosting the demand for efficient last mile delivery services. The prevalence of mobile apps and websites for product ordering has made it easier for Nigerians to access e-commerce platforms, thereby increasing the need for fast and reliable delivery options.

A significant trend in Nigeria's last mile delivery sector is the rise of hyperlocal delivery models. These services involve rapid delivery from local retailers to consumers within a few hours and are becoming increasingly popular, particularly in urban areas like Lagos. Hyperlocal delivery services address the growing demand for faster fulfillment and enhance convenience for consumers. Leading food delivery services such as Jumia Food, Uber Eats, and Bolt Food are at the forefront of this trend, which is also expanding to other sectors like pharmaceuticals, groceries, and electronics.

Environmental sustainability has become crucial for many logistics providers. Electric vehicles (EVs) are beginning to emerge in Nigeria's last mile delivery market, especially in urban regions. They offer a sustainable alternative to traditional delivery vans by reducing carbon emissions and noise pollution. Moreover, some delivery companies are exploring the use of motorcycles or bicycles for smaller packages in congested urban areas. Although the adoption of EVs is still limited due to the high initial investment, the growing emphasis on green logistics is significant in the sector.

Market Outlook

One of the key drivers of the market is the increasing global e-commerce sector. The demand for efficient, cost-effective, and timely last mile delivery solutions has risen in countries such as Algeria, South Africa, Egypt, and Nigeria. Despite facing challenges like infrastructure issues and relatively low internet penetration, Algeria's last mile delivery market is gradually growing, driven by an expanding middle class, ongoing urbanization, and improving mobile access. The rapid growth of e-commerce in Algeria is a critical factor fueling the development of this market.

The Algerian government acknowledges the importance of enhancing logistics and e-commerce infrastructure for economic growth. It has invested in improving transportation networks, particularly in urban centers, focusing on roads, ports, and railways. This infrastructure development provides a foundation for more efficient last mile delivery services. Furthermore, the government has implemented measures to support local e-commerce initiatives, such as encouraging digital payments and improving postal services to boost last mile delivery capabilities.

The last mile delivery market in Nigeria is poised for significant growth, driven by the expansion of e-commerce, urbanization, and the growing demand for fast and reliable delivery services. However, challenges such as inadequate infrastructure, traffic congestion, high operational costs, and security concerns continue to affect the sector's efficiency. Nonetheless, technological innovation, rural market expansion, and digital payment solutions present opportunities for market players to overcome these challenges.

Segmentation Analysis

Key segments contributing to the analysis of the last mile delivery market include type, vehicle type, and end use.

The market is segmented by type into B2C (Business to Consumer) and B2B (Business to Business). In terms of vehicle type, it is divided into motorcycles, commercial vehicles, drones, autonomous ground vehicles, and others. Regarding end-use, the market includes categories such as groceries, home essentials/houseware and furnishings, restaurant meals, clothing and apparel, consumer electronics, toys/hobbies/sporting goods, mass merchants, jewelry, specialty items, automotive parts and accessories, and others.

Key Players

Some key players in the market include Kerry Logistics Network Ltd., FedEx Corp., United Parcel Service Inc., DHL Group, WumDrop, Picup Technologies, Pargo, SENDR, RUSH, Fastvan, and Kobo360. These companies are employing various strategies, including expansion, product innovation, and mergers and acquisitions, to introduce innovative products and increase their market share. Show more