Zipline inks Côte d'Ivoire deal to expand drone delivery
The deal will support the delivery of health supplies to a third of the Ivorian population.
Zipline, the drone logistics company, has inked a deal with the Côte d'Ivoire government to expand its three-year pilot program of delivering health supplies across one-third of the country's population over the next eight years. This expansion marks a growing acceptance of drone technology by African governments to provide essential social services.
The agreement will see Zipline construct nine additional facilities in Côte d'Ivoire, complementing the sole operation it initiated in the country since 2023. By utilizing drones, Zipline has already delivered nearly 4 million medical products, primarily vaccines and blood, to over 200 healthcare centers in a region northwest of Abidjan.
The Ivorian government has committed to funding Zipline's operations for the next eight years, specifically focusing on pharmacy-grade warehousing, cold chain management, digital tracking, and delivery. Caitlin Burton, Zipline's head of global business, stated that while the exact financial details of the deal have not been disclosed, the government anticipates a threefold return on its investment.
Amadou Coulibaly, the Ivorian communications and digital economy minister, emphasized that the deal will ensure health facilities in remote areas receive a "regular and secure supply." Zipline's presence in Africa began a decade ago, aiming to become an on-demand delivery service. The company's expansion in Rwanda in 2016 laid the groundwork for its current strategy.
Zipline's Africa operations are primarily driven by government funding, with nearly $2 billion in venture capital backing its global business. The company has grown from delivering medical supplies to now offering food delivery for Uber. Discussions are underway for raising $1 billion from Silicon Valley investors, valuing the company at around $7.6 billion.
However, Zipline's African ventures are primarily focused on human health, with a tentative exploration into livestock insemination. The company will cover its infrastructure costs in Côte d'Ivoire through a $150 million grant from the US government, which was approved last year contingent on Zipline securing expansion contracts from African governments.
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