If you’ve ever wondered what’s going on with the future of E-commerce in Africa, this article would help you understand more about this market.
Africa is a fast developing continent with its new longing for technological advancement. E-commerce in Africa has also grown exponentially with it and it is expected to grow by around 40% in the next ten years, despite all the challenges. E-commerce seems to be quite a very lucrative business as the use of mobile keeps fostering this growth, as well as the adoption of new emerging technologies such as the disruptive innovations. For example, Nigeria’s e-commerce sector is expected to grow by 10 billion dollars in the ten years as the country is one of the backbones of African development.
However we have been noticing the global emergence of the middle class population which is estimated to be 2 billion people with a big segment from Africa. The world’s middle class growth is estimated to produce a profit of 6 trillion dollars to the e-commerce industry by the year 2021. Also, African youth are predicted to generate around 75 billion dollars through e-commerce by 2025 with the rate at which they aid in the technological development of the continent.
MasterCard Company aims to reach around 500 million consumers in Africa and Middle East in the next three years. This means this American multinational incorporate working on the financial industry is going to be significant that it integrates the e-commerce site to its payment gateway (MasterCard). This forecast is counted as a positive future plan for e-commerce startups and those that are willing to enter this new market due to the electronic payment are expected to take off.
Correspondingly we can mention some of the popular e-commerce businesses such as Jumia which is an ecosystem of online commerces, marketplaces and classified websites, backed by MTN Group and Goldman Sachs. Konga is also a strong competitor in the Industry.
To point out how significant e-commerce is in Africa, Jack Ma of Alibaba visited Kenya accompanied by at least 30 other Chinese billionaire businessmen looking for opportunities in this continent. Jack Ma said in his visit to Kenya, “I believe 90-80% of business in the future will be online.” As he pointed out, Africa will be the driving force of the global economy from today’s Asia, as analysts are observing what is now taking place.
However, for those interested, there is an event which will be held in Cape Town, South Africa. It is one of Africa’s leading e-commerce and Fintech exhibitions taking place from the 14-15 of March, 2018.
In conclusion, we encourage startups to globalize and accelerate in this potential continent and harness the opportunities they have to deliver competitive services in Africa and to the world at large.