Jumia's largest integrated warehouse in Egypt
With growth outpacing infrastructure, Africa’s e-commerce firms are building agile first-mile systems combining tech, people, and property.
Africa's e-commerce revolution is fundamentally reshaping the continent's economic landscape, with the sector experiencing unprecedented growth and innovation. According to data from IMARC Group, the African e-commerce market reached USD 317.0 billion in 2024 and is expected to grow to USD 1,017.0 billion by 2033, exhibiting a compound annual growth rate (CAGR) of 13.8% during 2025–2033. This explosive growth has created unique challenges and opportunities, particularly in the critical first-mile delivery segment, where goods move from suppliers to distribution centres and sorting facilities.
The first mile challenge: Africa's unique landscape
The first mile of delivery, the journey from seller to warehouse or distribution centre, represents one of the most complex and crucial segments of the African e-commerce supply chain. Unlike developed markets with established infrastructure and standardised processes, Africa's first-mile operations must navigate a complex web of challenges that demand innovative solutions.
According to Abdesslam Benzitouni, VP Global Head of Public Affairs & Communications at Jumia, the continent's leading e-commerce platform, first-mile delivery in Africa presents unique hurdles not typically seen in developed markets.
Adaptation is key, and Jumia is completely adapted to the local context to make e-commerce work.”
Abdesslam Benzitouni, Jumia
“These include infrastructure gaps, such as poor road networks and inconsistent addressing systems, fragmented supplier ecosystems, where many sellers are informal or unstructured, requiring more hands-on onboarding and coordination, and cross-border logistical complexity, given regulatory differences and limited regional integration,” he explains.
These challenges reflect the broader reality of African e-commerce, where traditional supply chains often rely on informal networks and face significant infrastructure limitations. The absence of standardised addressing systems in many regions, combined with poor road networks, creates logistical nightmares that require creative solutions and local expertise to overcome.
Centralised warehousing: The foundation of efficient first-mile operations
To address these challenges, e-commerce operators are adopting innovative warehouse management approaches that balance efficiency with local market realities. Jumia's strategy exemplifies this approach: “We operate one large centralised warehouse per country, designed to handle high inventory volumes and streamline fulfilment. This centralised model, backed by our proprietary technology platform, allows us to maintain better control, ensure faster processing, and optimise storage for a wide range of products. It also enables more efficient coordination with sellers, logistics partners, and faster consolidation for last-mile delivery,” notes Benzitouni.
This centralised approach enables more efficient coordination with sellers, logistics partners, and faster consolidation for last-mile delivery. However, the success of such models depends heavily on the quality and strategic positioning of warehouse facilities, a critical factor that specialised institutional property developers like ALP are addressing. Based in Nairobi, ALP specialises in the investment, development, and management of institutional-grade warehouses for Kenya's occupier market.
Raghav Gandhi, CEO of ALP, emphasises the crucial role that institutional-grade warehousing plays in supporting e-commerce growth: “The continuing growth of e-commerce in Africa has reshaped supply chain expectations, especially around speed, reliability, and scalability. While not fully mainstream, online shopping, retailers, and logistics providers will increasingly need facilities that can support rapid order fulfilment and high-volume operations.
At ALP, we've seen this trend drive an uptick in demand for our institutional-grade warehouses (both Grade A and B). E-commerce players, third-party logistics (3PLs) providers, and fast-moving consumer goods (FMCG) companies are seeking high-quality warehousing with features that support automation, inventory accuracy, and efficient goods movement. Our facilities provide this critical backbone, helping tenants reduce turnaround times, manage seasonal peaks, and scale effectively across the African market.”
A similar trend is emerging in South Africa, where Chinese e-commerce giant Temu has recently set up a local warehouse via third-party logistics partners, cutting delivery times for select products to under two days, with some orders arriving the same day.
Technology-driven solutions for complex markets
According to data from the International Trade Administration, Africa is forecast to surpass half a billion e-commerce users by 2025, reflecting a steady compound annual growth rate (CAGR) of 17% in online consumers.
Jumia has developed several technological innovations that have proven most impactful in improving visibility, efficiency, and cost-effectiveness within their first-mile operations. These include Jumia Logistics Management System (JLMS) for end-to-end tracking and route optimisation, seller apps that improve communication and collection scheduling, and automated sorting and scanning tools at drop-off hubs, which reduce handling time and errors.
Further Innovations, such as drone deliveries and automated lockers, are being introduced to improve efficiency and reduce costs, while integrating blockchain technology, AI, and IoT in supply chain management will enhance transparency, security, and operational efficiency.
The human element: Bridging digital and physical commerce
Despite the technological advances, the African e-commerce landscape still requires significant human intervention, particularly in the first mile. Jumia's approach to supplier engagement demonstrates this reality: “We prioritise training and digitisation for small-scale and informal sellers, offering tools via the Jumia Vendor Centre to simplify product upload, order tracking, and fulfilment. A key part of our model is the drop-off station network, where sellers physically meet with Jumia representatives,” explains Benzitouni.
E-commerce and logistics companies rely heavily on speed, flexibility, and reliability, and our warehouses are designed with those needs in mind.”
Raghav Gandhi, ALP Warehouses
These stations serve as critical touchpoints, where offline interactions support online commerce, helping sellers transition into e-commerce with trust and guidance. In many of our markets, human connection remains essential to onboarding, educating, and converting sellers into long-term partners,” he adds.
This hybrid approach, combining digital tools with human touchpoints, reflects the unique nature of African commerce, where trust-building and relationship management remain crucial for business success.
Infrastructure: The backbone of first-mile success
The quality and strategic positioning of warehouse facilities play a crucial role in first-mile efficiency. ALP's approach to logistics real estate demonstrates how strategic infrastructure development can support e-commerce growth. Gandhi explains: “E-commerce and logistics companies rely heavily on speed, flexibility, and reliability, and our warehouses are designed with those needs in mind.
Key features that support first-mile efficiency include high eaves and wide column spacing, allowing tenants to install racking or mezzanine systems for efficient storage and picking, dock-levelers, and large roller shutter doors that facilitate smooth inbound and outbound truck movement, spacious yards that support efficient vehicle manoeuvring and high-volume operations, modular warehouse units, enabling scalability as tenants grow, built-to-suit warehouse solutions for specialised operational requirements.”
The strategic positioning of these facilities is equally important. ALP's logistics parks are located to ensure maximum accessibility to key transport routes, population centres, and industrial zones. “Our facilities are strategically positioned at critical inland points where businesses need to consolidate, store, and sort goods for onward distribution. Our tenants benefit from reduced congestion, secure environments, and fast access to major highways, helping them streamline first-mile and intra-city logistics,” notes Gandhi.
ALP North Logistics Park, located in Tatu City, is just 2 km from the Thika Superhighway, providing direct access to Nairobi's central business district, surrounding residential zones, and key manufacturing hubs. This makes it an ideal location for distributors and e-commerce companies targeting Nairobi's growing northern corridor. While ALP West Logistics Park, situated in Tilisi Developments along the Nairobi–Nakuru highway, offers strategic connectivity to Nairobi's western suburbs, as well as central and western Kenya. It serves as a key node for regional distribution and last-mile access to emerging urban markets.
Market growth and regional variations
The African e-commerce market shows significant regional variations, with countries experiencing different levels of growth and infrastructure development. According to the IMARC report, South Africa is currently the largest e-commerce market on the continent. In the South African region, increasing access to high-speed internet is a key driver of online retail. A relatively stable economic environment also provides a fertile ground for digital businesses to thrive.
Image: ALP Warehouses
Following South Africa, Nigeria and Egypt rank among the top e-commerce markets on the continent. These variations reflect different levels of infrastructure development, digital literacy, and consumer behaviour across the continent. Trends shaping the market include a mobile-first approach, localised payment solutions, social commerce expansion, and innovative pricing strategies, while challenges include digital literacy and consumer trust.
Sustainability and future outlook
As the African e-commerce market continues to mature, sustainability considerations are becoming increasingly important in first-mile operations. “Modern warehouse facilities are incorporating sustainable design elements, including solar energy, water harvesting, and efficient lighting systems that support both operational and environmental goals,” says Gandhi.
Jumia's long-term vision reflects this evolution: “ We are focused on expanding access to our logistics network and simplifying the seller experience. As infrastructure and digital adoption improve, we aim to deepen our reach and efficiency in a way that supports broader economic participation,” mentions Benzitouni.
The road ahead for African e-commerce
The African e-commerce landscape represents one of the world's most dynamic and challenging markets for first-mile delivery operations. The unique combination of rapid growth, infrastructure limitations, diverse supplier ecosystems, and mobile-first consumer behaviour has created a need for innovative solutions that balance efficiency with local market realities.
The success stories of companies like Jumia and ALP demonstrate that with the right approach, combining technology, human expertise, strategic infrastructure, and deep local knowledge, it is possible to build efficient and scalable first-mile operations that support the continued growth of African e-commerce.
As infrastructure improves and digital adoption accelerates, the innovations pioneered in African first-mile operations may well become models for other emerging markets around the world.