The rise of e-commerce across Africa
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The rapid diffusion of telecommunication and internet technologies
across Africa has caused soaring digital adoption rates among its young
and growing population in recent years. With the increasing popularity
of online services, the e-commerce sector found fertile ground for
growth. The number of digital shoppers in Africa has more than
doubled between 2015 and 2021, with further growth being forecast for
the coming years, making Africa a promising market. Looking at the
environment in which Africa’s e-commerce industry developed, as well
as the characteristics of African online shoppers and online
marketplaces, some key highlights must be considered:
▪ The lack or inadequacy of infrastructure, high-priced subscriptions
and devices, and the lack of education and digital skills are among
the barriers that limit internet and online shopping adoption in
Africa. Political instability, conflicts, widespread corruption, as well as
poor cybersecurity and a mostly unbanked population result in high
costs for enterprises willing to penetrate Africa’s e-commerce market.
Overcoming these constraints would allow for further e-commerce
growth.
▪ Due to these hurdles, e-commerce giants like Amazon and Alibaba
still have a weak presence on the continent. Founded in Nigeria,
Jumia is the online marketplace with the highest number of visitors in
Africa.
▪ Despite the rapid growth in the number of internet users, internet
penetration in Africa stands at 44 percent, significantly below the
global average. Web traffic is mainly generated by mobile devices.
▪ Most of Africa’s e-commerce users are young, reside in urban areas,
and tend to purchase consumer electronics, shoes, and clothing
online. Moreover, mobile e-commerce accounts for a large share of
digital shopping.
▪ Digital and mobile payments are expanding in Africa and partially
compensate for the low banking penetration. However, cash-on-
delivery is the main payment method when it comes to e-commerce.
▪ The coronavirus (COVID-19) pandemic led to increased demand for
home deliveries, especially food and personal care products, and a
rise in the revenues of Africa’s online marketplaces. Nevertheless, e-
commerce revenues on the continent remain low compared to the
number of users.
This report will explore the recent developments in Africa’s e-commerce
landscape. After providing an overview of the continent, due to the vast
area and international and domestic differences, we will focus on the
five main markets, namely Egypt, Kenya, Morocco, Nigeria, and South
Africa, all of which are among the largest African economies.
Executive summary
Source(s): ITU; PPRO; StatCounter; Statista
