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South African click-and-collect company Pargo considers venture into rest of Africa

South African clickandcollect business Pargo is exploring an expansion into the rest of Africa, its CEO said in an interview, betting on ecommerce development on the continent.

Africa is anticipated to surpass half a billion e-commerce users by 2025, having actually shown a stable 17% compound annual growth rate of online consumers in the market, according to the International Trade Administration, a U.S. government company.

This development is driven by increasing internet penetration, mobile phone adoption and the growing use of digital monetary services, particularly mobile cash.

We're looking at a growth strategy to move into multiple markets. We're already operational in Egypt as a 2nd country, however we are quite seriously taking a look at, in the future, constructing a network across Africa, Pargo CEO and co-founder Lars Veul informed Reuters.

He said the options would cover the main economies in Africa.

We do not understand precisely yet. So, it's more about the nations where e-commerce is expanding or expected to boom.

The growth will also be driven by following its existing clients into nations where they operate beyond South Africa, Veul included.

Veul, a Dutch resident who relocated to Cape Town in 2012 from Amsterdam to help set up online market Groupon in South Africa, said he co-founded the business in 2015 after understanding last-mile shipment was a serious challenge for e-commerce services on the continent.

The company has more than 4,000 pick-up points situated at stores across South Africa, consisting of town spaza. stores, which are casual shops that dot area corners.

Pargo has actually partnered with major listed telecoms, banks and. merchants including U.S. e-commerce giant Amazon, which. launched in South Africa in May this year. Amazon's clients. order online and then collect their parcels at Pargo's pick-up. points.

Click-and-collect allows consumers to prevent delivery costs. and the agony of waiting on the delivery. It likewise reduces costs. for last-mile delivery companies, who grapple with fuel. expenses, product returns and trouble in providing to. areas and backwoods.

(source: Reuters)