Logistics

The logistics and supply chain sectors became the hottest buzzword in 2021. Many new start-ups are trying to solve logistics problems in various parts of the world. The logistics sector raised $27.5 billion from venture capital firms alone in 2021, an increase of 80% over 2020. In addition, the number of transactions has increased from 777 in 2020 to 913 in 2021.

In the last decade, the investor made a significant investment in e-commerce. The pandemic accelerated e-commerce adoption significantly. The proportion of total global retail sales accounted for by e-commerce increased from 13.6 percent in 2019 to 18 percent in 2020. In short, the pandemic accelerated e-commerce adoption by three to ten years.

Over the last decade, a growing middle class and rapid progress in mobile and internet penetration have supported the view that African countries are ripe for e-commerce success. Consumer spending across the continent is projected to reach $2.1 trillion by 2025, by which time mobile-phone penetration in sub-Saharan Africa is likely to stand at 50%. Yet, so far, companies have largely failed to tap sub-Saharan Africa’s e-commerce potential, owing to logistical challenges and inefficiencies.