Online retail, commonly known as e-commerce, continues to make its way to Africa despite all sorts of challenges it faces. If in 2017, UNCTAD estimated that the African e-commerce market was worth around US $5.7 billion, in 2021 this sector generated US $28 billion in revenues, and this figure could reach US $46.1 billion in 2025.
“African e-commerce has grown rapidly in recent years and this trend is expected to continue. There is potential for a large digital audience. Internet penetration has increased due to the large expansion of smartphones and mobile devices in general. Indeed, mobile e-commerce dominates the online shopping scene, « said Mariam Saleh, an expert and researcher at Statista.
However, many consumers who wish to use this service often complain about the difficulties they face in obtaining a debit or credit card.
Indeed, while in some countries consumers obtain their debit cards on the same day as the opening of accounts, customers of banks in other African countries are constantly experiencing difficulties in holding this valuable card, which guarantees access to online purchases. Sometimes the wait is so long that customers give up and leave without any trace.
Mariam Saleh acknowledges the scarcity of credit cards on the continent but welcomes the introduction of various digital payments that are becoming widespread in African countries, describing them as a key aspect for e-commerce.
« Alternative payment methods such as payment on delivery and mobile money are used by digital buyers, » she said.
Moving Ahead
Therefore, in Africa, whether there is a bank card or not, online retailing continues to make its way through the yard of the big.
E-commerce revenues in Africa will continue to grow between 2021 and 2025, warned Statista, estimating the number of digital buyers in Africa at 281 million in 2020, and estimating an increase to 520 million by 2025.
This increase will have shown a stable Compound Annual Growth Rate (CAGR) of 17% of online consumers for this market, according to forecasts from the International Trade Administration (ITA), an agency of the U.S. Department of Commerce that promotes U.S. exports of services and non-agricultural goods.
According to Statista, special attention should be paid to some of Africa’s most competitive markets, namely Nigeria, South Africa, Kenya, Morocco and Egypt.
In these countries, online retailing is booming thanks to several leading companies that operate in many other African countries, such as Jumia, Konga, takealot and Kilimall.
Adapted and Translated from French into English by:
Albéric Djomaki,
CEO at LMS (www.lmsgroupafrica.com)
American Translators Association (ATA) Associate Member
References:
