E-Commerce currently accounts for a small percentage share of total retail sales in Africa according to the latest report by Research and Markets.
This, the report notes, indicates a major potential for future growth, with the forecasts cited in the report projecting an eleven-digit dollar value for Africa’s online retail in 2020. Most of this growth comes from the increasing adoption of online shopping practices by Africa’s emerging consumers.
Mobile technology plays an important role in this process, powering a lion’s share of Internet connections in Africa’s households.
Africa’s largest B2C E-Commerce markets include South Africa and Nigeria. In both countries, more than 50% of Internet users shop online, whereby South Africa is significantly ahead of Nigeria in terms of Internet penetration.
Another regional leader is Egypt, where online retail sales register high growth rates of above 30% as of 2019. In terms of local competition, the leading companies in these three markets include Nigeria-based Jumia and South Africa’s Takealot.
These and other regional players face strong competition from cross-border online shopping platforms such as AliExpress and Amazon, which are gaining popularity among digital consumers in Africa.