fbpx

E-COMMERCE

Bullish e-commerce outlook for Africa, says international media report

By our News Team | 2022

Global technology publication predicts online shopping on the continent is set to become ‘highly lucrative’.

As access to smartphones, the internet and fintech becomes a larger reality within Africa, the continent is increasingly positioning itself as a highly lucrative market within the e-commerce industry.

This is according to The Fintech Times, a London-based global news outlet centred around a technology focused newspaper and website. In a recently published article, The Fintech Times quotes a report by StockApps, the financial education and app hub, which estimates African e-commerce will reach annual revenue of US$46-billion by 2025.

E-Commerce

Photo by Andrea Piacquadio from Pexels

“Africa is shaping up to be the next hotbed for internet-based businesses, currently worth around $33.3-billion. As smartphones and the internet become more prevalent in African countries, the population has started to shift towards online shopping,” the article states.

It also quotes research by Statista, the German-based consumer data specialist, as saying continent’s e-commerce industry is expected to grow at a compound annual growth rate (CAGR) of 24.7 per cent between 2017 and 2024. In 2017, the industry’s annual revenue sat at just $7.7-billion and it is expected to increase to $42.3-billion in 2024.

Income to increase by 500 percent in seven years

“Thus, the yearly income stands to increase by almost 500 per cent in seven years,” The Fintech Times observes. “In the last couple of years, the pandemic has also helped the industry, like everywhere else on the globe. Thus, one can also expect the recent surge in growth to slow down in the coming years.”

The article continues: “In 2017, only 138.9-million people shopped online in Africa, a figure that is expected to grow up to 519.8-million in 2024, at a CAGR of 17.9 per cent. It is interesting to note that the revenue growth rate is higher than that of the user base.

“Furthermore, the e-commerce penetration in the African population in 2024 is expected to be 40 per cent. Therefore, there is significant room for further growth in the African e-commerce industry.”

This week the US publication Business Insider, quoting a leaked document, reported that Amazon.com intends to enter the South African and Nigerian e-commerce markets in 2023. 

Logos

Logos

The new identity debuts in Africa next year and ‘pays homage to the brand’s rich heritage while taking a big leap toward the future’.

Read More »
Retail Strategy

Retail Strategy

There is a rise in demand for clothing adapted to the needs of disabled consumers. But online retailers must give the process more thought.

Read More »
The Internet

The Internet

Marketers must base their strategy decisions on digital facts, not commonly held beliefs. Here are a few such myths that have been debunked.

Read More »
Social Media

Social Media

While some legislators want a complete ban on TikTok due to spying concerns, US marketers want to spend more on the platform.

Read More »
Social Media

Social Media

Utah is the first state to heavily curb minors’ access to social media, but others may follow with even stricter laws.

Read More »
Supply Chain

Supply Chain

Businesses can make more accurate predictions about demand, optimise their operations and make better decisions about inventory management.

Read More »
AMC News

AMC News

High-level Chartered Marketer (Africa) programme equips marketers to operate successfully in the continent’s complex and diverse markets.

Read More »
Content Marketing

Content Marketing

Why do some articles captivate readers and encourage them to keep reading, while others make them lose interest after just a few sentences?

Read More »
Digital Marketing

Digital Marketing

Analysis finds social media used by less than 4% of people, while mobile phone connections are equivalent to less than 60% of Malawians.

Read More »