For years, African logistics has been framed as a routing and marketplace problem: match trucks to loads, digitise brokers, add tracking, done. But operators on the ground describe a different reality. This is where bad roads, politics, customs, FX and liquidity all collide. Margins are thin, relationships are deep, and the real leverage sits with whoever can finance the movement of goods, not with whoever can draw the neatest line on a map.
Transport costs swallow a disproportionate share of final prices across many African corridors, making the region one of the most expensive places to move goods. Yet freight demand is still growing as urbanisation and consumption rise. SMEs and informal distributors sit right in the middle of this system: they struggle to secure reliable capacity, rarely access formal supplier credit, and depend heavily on analogue networks to keep stock moving. The last wave of "asset-light marketplaces" underestimated how much of this industry is about balance sheets and trust, not just software. The next wave will have to lean into that reality: blending platforms with warehouses, vehicles, trade finance, and collections, and accepting that taking real risk on goods and cash is part of the model.
In particular, I expect 2026 to see accelerated demand for:
The companies that matter won't just "optimise routes". They'll position themselves at the heart of messy supply chains, take responsible risk on goods and working capital, and then use software to make that risk scalable.
Q: What is the biggest challenge facing African logistics startups today?
A: The biggest challenge is not route optimization -- it is access to working capital. African logistics startups must navigate thin margins, informal credit networks, unreliable infrastructure, and FX volatility. Startups that can finance the movement of goods, not just coordinate it, hold the real competitive advantage.
Q: How does embedded finance change the logistics model in Africa?
A: Embedded finance allows logistics platforms to bundle inventory credit, transport, payments, and collections into a single service for MSMEs. Rather than acting as a thin matching layer, these platforms become a critical financial infrastructure for small businesses that cannot access traditional supplier credit.
Q: Why did asset-light logistics marketplaces struggle in Africa?
A: Asset-light marketplaces underestimated the role of trust and balance sheets in African supply chains. Without taking real risk on goods, cash, or relationships, these platforms lacked the leverage needed to penetrate markets where analogue networks, informal credit, and deep operator relationships still dominate.