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Logistics Firms Bridge Gap Between Amazon, Walmart and African Consumers

ENTHMSVIIDZHZH-TWJAKOHI
Jul 15, 20262 min read
Logistics Firms Bridge Gap Between Amazon, Walmart and African Consumers

Summary

A growing network of package-forwarding companies is enabling African shoppers to buy directly from global e-commerce giants like Amazon and Walmart. These intermediaries overcome local challenges such as a lack of formal addresses and traditional banking, unlocking a burgeoning but complex market.

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Background

A network of logistics intermediaries is creating a pipeline for African consumers to purchase goods from major global retailers like Amazon and Walmart, which lack a direct physical presence across most of the continent. These firms are leveraging technology to navigate infrastructure hurdles, connecting a growing online consumer base with international brands.

The Logistics Bridge to Global Retail

Package-forwarding companies, from local startups to global logistics giants, provide a crucial link. Senegalese startup Afrety, for example, offers customers warehouse addresses in the U.S., Europe, and China. Shoppers can have multiple purchases from sites like Amazon consolidated and shipped to West Africa.

To overcome local challenges, these services have adapted their models:

  • Payments: Customers without bank cards can use widely adopted mobile money accounts.
  • Delivery: Lacking formal street addresses, couriers use GPS for last-mile delivery via motorbikes and vans.
  • Scale: Afrety, which started in 2018, now handles four to five metric tons of air freight weekly, Souane Diop, the company's CEO, told Reuters. Larger competitors like Aramex operate established platforms such as MyUS and Shop and Ship, serving numerous countries on the continent.

Market Dynamics and Growth Potential

For logistics providers, Sub-Saharan Africa represents a significant growth opportunity. Aramex calls the region one of its fastest-growing and plans to double its revenue from these operations by 2030, according to Reuters. The most sought-after products include electronics, apparel, and machinery parts.

However, significant constraints remain. E-commerce growth is largely concentrated in major urban centers where wealth is higher. According to consultancy TechCabal Insights, while internet penetration has reached about 43% of Africa’s 1.5 billion people, only a small fraction have the disposable income to shop online regularly. In Nigeria, West Africa's largest economy, only one in three internet users is an online shopper.

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A Tale of Two Markets

South Africa stands as a notable exception on the continent. As the most developed economy in sub-Saharan Africa, its e-commerce market is far more mature. Online retail volumes in the country have grown by nearly 35% annually over the last five years, reaching approximately 140 billion rand ($7.26 billion) in 2025, according to data from Mastercard.

This market maturity has attracted direct investment from global players. Amazon launched its first African online marketplace in South Africa in 2024, and the first Walmart-branded stores opened in Johannesburg last year. Neither company commented to Reuters on plans for further expansion in the region.

Intensifying Competition

The intermediaries face competition not just from each other but also from established local and new international players. Jumia, often called the "Amazon of Africa," operates in eight countries and is fending off pressure from Chinese retail giants Temu and Shein by localizing its services.

Nigeria is emerging as a key battleground. Jumia's CEO, Francis Dufay, told Reuters that business there grew by about 50% in the last quarter of 2025, calling the market "totally underpenetrated." In a sign of the market's potential, Aramex opened a new warehouse in Nigeria in April.

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