Home Other News DHL Express cements commitment to growing African e-commerce with strategic investment in Link Commerce

DHL Express cements commitment to growing African e-commerce with strategic investment in Link Commerce

by Our Reporter

CAPE TOWN, South Africa, May 28, 2020/ — DHL (www.DHL.com) acquires a
stake in their strategic partner company, Link Commerce, in support of
growing e-commerce in Sub-Saharan Africa and other global emerging
e-commerce markets; Africa’s online retail market predicted to reach an
11-digit dollar value in 2020.

DHL Express today announced its minority stake acquisition in Link
Commerce, the UK-based e-commerce firm that helped the logistics company
develop its hugely successful DHL Africa eShop platform
(www.Africa-eShop.dhl).

Hennie Heymans, CEO of DHL Express sub-Saharan Africa, says that the
acquisition demonstrates the company’s commitment to growing e-commerce
on the continent. “Acquiring a stake in Link Commerce – the company
behind the MallforAfrica.com platform – shows our tremendous support of
e-commerce in Africa. It also positions us to realize our ambitions of
growing the eShop offering globally, and work on the scalability of the
platform when the opportunity arises.”

“DHL’s investment in Link Commerce is a perfect fit. With the DHL
investment we are now able to grow faster by leveraging the amazing
shipping network DHL has built globally. This will help us expand our
white-label turnkey B2B eCommerce platform and provide online shoppers
with the ability to shop more and get more at great shipping rates
fast.” said Chris Folayan Founder and CEO of Link Commerce and Mall for
Africa.

Just over one year on from its initial launch, the DHL Africa eShop
(www.Africa-eShop.dhl) continues to see massive growth in sub-Saharan
Africa. Heymans notes that the DHL Africa eShop has consistently
outperformed expectations since its launch. “The platform was developed
in partnership with Link Commerce and initially launched in 11 African
countries in April 2019. It was an immediate success, gaining around
5,000 subscribers within the first six weeks. Today, DHL Africa eShop is
live in 34 countries across Sub-Saharan Africa with tens of thousands of
users across the continent.”

The DHL Africa eShop offers African consumers unprecedented access to
international retailers via an easy-to-use platform, with great
convenience, speed and reliability. “DHL Africa eShop enables African
customers to shop directly from over 200 US- and UK-based online
retailers, with purchases delivered directly to their door, by DHL
Express.”

Heymans adds, “Online buying behaviours and product mixes have evolved
quite significantly since the onset of COVID-19. Some of the most
popular items on the platform now include productivity and
communications devices to support remote working, home and kitchen
appliances, entertainment gadgets and health related products, in
addition to the historic orders of fashion and beauty products. Consumer
interests have shifted towards goods that are harder to source locally.
With brick-and-mortar retailers in many regions operating at reduced
capacity, consumers have turned to online shopping to acquire the goods
they need. It’s been great to see eShop providing vital online shopping
access during this time, with impressive growth coming from countries
like Nigeria, Ghana, Rwanda, Angola, Uganda and Kenya during the various
stages of lockdowns, and with South Africa back on board to access
e-commerce, we are thrilled for our users to be able to use service
offering once more.

Assurance for delivery has become a top priority for consumers,” says
Heymans. ” Basket sizes have also increased, as shoppers seek to get all
of what they need immediately, rather than to space out their orders.
Online shopping supports the ultimate level of social distancing –
connecting consumers to everything they need at a click of a button.

Heymans explains that while the e-commerce market in Sub-Saharan Africa
has been largely overlooked by international retailers in the past, it
currently offers some of the biggest opportunities for rapid growth in
the world.

E-commerce is proving to be one of the most important and
fastest-growing market sectors in Africa. A report published by Rapid
B2C forecasts that Africa’s online retail market will reach an 11-digit
dollar value in 2020, while another report by the McKinsey Global
Institute estimates that this value could potentially reach $75 billion
by 2025.

“These growth predictions, coupled with the incredible demand and quick
uptake of the DHL Africa eShop offering, confirm that this acquisition
is the right move to ensure DHL Express is geared for continued growth,”
adds Heymans.

As part of the acquisition, Heymans has been made a board member of
London-based Link Commerce Ltd. “We have no doubt that deepening our
partnership with Link Commerce in this way will take both companies, as
well as e-commerce on the continent and new markets across the globe, to
new heights. I am honoured to take on this new role as part of DHL’s
growth strategy.”

” At Link Commerce our strategy is to help businesses grow and provide
shoppers globally with access to US and UK online retailers like never
before. DHL’s investment in the company gives us that edge we need to
expand rapidly globally and access to products like never before,” said
Chris Folayan, Founder and CEO of Link Commerce Ltd.

With operations across 51 markets in Sub-Saharan Africa, servicing
customers, efficient delivery is an important factor for DHL Express.
“Our strategic investments in innovative technology and connectivity
across the region, are all aimed at promoting global trade and ensuring
that businesses and individuals across the continent can leverage global
opportunities,” Heymans concludes.

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