South African smart logistics startup Pargo has announced its expansion into Egypt, aiming to tap into the country’s rapidly growing eCommerce market. With Internet access expanding, enhanced infrastructure, and a rising number of online shoppers, Egypt’s eCommerce market is projected to reach $9.05 billion in 2024, potentially doubling to $18.04 billion by 2029, at a projected annual growth rate of 14.80%.
Pargo’s CEO, Lars Veul, noted Egypt’s potential as a major eCommerce hub, calling the expansion a strategic step towards building one of the largest smart logistics networks in the region. “Our goal is to offer affordable, efficient delivery solutions that address gaps in current eCommerce services across Africa,” Veul said.
A 2023 GSMA study pointed out that while eCommerce adoption is accelerating across the continent, logistical challenges—like damaged goods, delivery delays, and capacity limitations—still hinder online retail growth. Pargo’s entry seeks to address these pain points by offering tech-enabled delivery solutions for Africa’s underserved eCommerce sector.
Founded in 2015 by Veul and Derk Hoekert, Pargo has built a network of over 4,000 Pargo Points across various regions, connecting prominent companies like Amazon, Bash, and Jumia with extensive delivery capabilities. Pargo’s pilot program in Egypt, launched in 2023, established 150 Pargo Points to test its network with local eCommerce players, introducing features like the “Cash on Collection” payment option.
Building on its success in Egypt, Pargo plans to expand to 7,000 collection points across the region by 2026. The startup aims to support this ambitious growth through partnerships with local businesses and brands, ultimately positioning itself as a key logistics provider in North Africa’s booming eCommerce market.
