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DHL Express buys stake in e-commerce firm

Sibahle Malinga
By Sibahle Malinga, ITWeb senior news journalist.
Johannesburg, 29 May 2020
Hennie Heymans, CEO of DHL Express Sub-Saharan Africa.
Hennie Heymans, CEO of DHL Express Sub-Saharan Africa.

Logistics company DHL Express has acquired a minority stake in UK-based Link Commerce, DHL’s partner in launching the Africa eShop.

An e-commerce turnkey solutions firm, Link Commerce provides access to some of the largest online malls in the UK and US – MallforAfrica.com and MallfortheWorld.com, among others.

The company’s services enable global customers to shop across 250 online retailers and offers access to over 8.5 billion items.

Last year, in partnership with Link Commerce, DHL launched its DHL Africa eShop e-commerce platform, which provides African consumers with over 200 US and UK shopping sites and also offers express delivery of items.

According to DHL Express, the acquisition demonstrates its commitment to support the growing e-commerce sector in Sub-Saharan Africa and other emerging e-commerce markets globally.

While e-commerce currently accounts for a small percentage share of total retail sales in Africa, it is touted as one of the fastest-growing market sectors in the region.

A report published by Rapid B2C forecasts that Africa’s online retail market will reach an 11-digit dollar value in 2020, while a report by the McKinsey Global Institute estimates this value could potentially reach $75 billion by 2025.

Hennie Heymans, CEO of DHL Express Sub-Saharan Africa, notes the demand for the DHL Africa eShop confirms this strategic acquisition is the right move to ensure DHL Express is geared for continued growth.

“Acquiring a stake in Link Commerce shows our tremendous support of e-commerce in Africa. It also positions us to realise our ambitions of growing the eShop offering globally and to work on the scalability of the platform when the opportunity arises.”

DHL bills itself as the largest global brand in the logistics industry. Its divisions offer logistics services ranging from national and international parcel delivery, e-commerce shipping and fulfilment solutions, international express, road, air and ocean transport, and industrial supply chain management.

The company operates in more than 220 countries worldwide, with about 380 000 employees.

Just over one year from its launch, the DHL Africa eShop has seen massive growth across Sub-Saharan Africa, notes Heymans.

“The platform 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 shopping site is available to customers in Nigeria, Ghana, Rwanda, Angola, Uganda, Kenya and SA, among other countries.

According to Heymans, consumer interests have shifted more towards goods that are harder to source locally.

With brick-and-mortar retailers in many regions operating at reduced capacity during the global lockdown period, consumers have turned to online shopping to acquire the goods they need, highlighting the importance of an efficient delivery service.

“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 the edge we need to expand rapidly around the globe and gives us access to products like never before,” says Chris Folayan, founder and CEO of Link Commerce.

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