Pigee Acquires 55% of ShipAfrica to Crack African Logistics
US-based logistics-tech company Pigee has agreed to acquire a controlling 55% stake in Nigerian logistics startup ShipAfrica, marking its first significant entry into West Africa. The acquisition, structured in three stages over 18 months, pairs Pigee's software and international shipping infrastructure with ShipAfrica's local operations and carrier relationships. This consolidation tackles a persistent problem: moving goods across Africa's fragmented logistics networks remains costly and difficult, with the World Bank noting that bureaucratic delays inflate regional trade costs by up to 25%.
Why This Merger Makes Sense
Pigee, founded in 2022 and incorporated in Delaware, has built a B2B platform that allows merchants to sell globally, with over 300,000 customers. ShipAfrica, launched the same year, focuses on physical logistics in Nigeria, serving individuals, merchants, and third-party logistics firms. By combining Pigee's software with ShipAfrica's hubs and relationships, the companies aim to address the high costs and reliability issues that plague African commerce. Pigee CEO Leroy Lawrence emphasized the need for a trusted local operator, stating that 'for a lot of people, people fear getting into Africa and Nigeria.'
The Challenge of African Logistics
Logistics remains a major hurdle for African businesses. The United Nations Conference on Trade and Development reports that gaps in infrastructure make trade in Africa 50% more expensive than the global average. ShipAfrica's CEO Walter Isoko noted that it's often cheaper to ship to the US or UK than to other African countries. Small businesses struggle with packaging and meeting carrier requirements, while costs can be prohibitive. ShipAfrica addresses this by providing partner hubs that prepare shipments and an aggregator that simplifies shipping options. The company's transaction volume has grown from ₦2 billion in March 2024 to over ₦7 billion by 2025, showing the demand for such services.
What Changes and What's Next
ShipAfrica will retain its name, management, and team of over 10 employees, with Isoko remaining CEO. The company will gradually integrate Pigee's technology, including its CRM and shipping aggregator, and may adopt branding like 'Ship Africa powered by Pigee.' Pigee plans to expand its academy to train salespeople, with 360 already trained in South Africa and Southeast Asia. The deal reflects a broader trend in African tech M&A, with 84 transactions worth $11.4 billion in 2026, surpassing the previous year. Pigee, which has not raised external venture funding, is raising a new round to fund expansion across Africa and globally.
Key Takeaways
- Pigee acquires 55% of ShipAfrica to enter West Africa, combining software with local logistics.
- African logistics costs remain high due to infrastructure gaps and bureaucratic delays.
- ShipAfrica retains its brand and team, with gradual tech integration from Pigee.
- The deal is part of a wider surge in African tech M&A focused on market access.
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