17 Sep African Payment Provider Report on eCommerce Growth Across The African Continent

Payment Provider for eCommerce across Africa (including Kenya, Nigeria and South Africa), African Payment Solutions reports that eCommerce growth is looking good across the continent.

Africa by population is the second biggest continent in the world and its eCommerce is well below 1% of retail as compared to a global average of just under 10%.

The growth is fuelled predominantly by digital products and services as opposed to the delivery of physical goods because of poor demarcation of delivery addresses and the demand from a growing number of smartphone users.

There are conflicting reports on the cause of growth being the rapid rate of urbanisation causing an escalation in eCommerce growth, or demand from people with smartphones in rural areas finding it easier to buy products and services online.

Africa has a number of very well established eCommerce companies like Bidorbuy, DHL Africa eShop, Gumtree, Jumia, Konga, OLX, Superbalist, Takealot with the most significant growth of platforms being in countries like Nigeria and Kenya who are enjoying the benefits of global fintech investment. 

African consumers have embraced the new smartphone technology, the connectedness and the ability to pay with Mobile Money, and are enjoying the experience of international goods and services.

Another driver of African eCommerce is that in the more developed world, goods and services are more readily accessible, however in Africa there is a need for more accessible, more technologically advanced products and services which improve the lives of African consumers.  As opposed to a” nice to have” in the developed world, in the developing world it fulfills in many cases a dire need.

According to Unctad there were at least 20 million online shoppers across Africa in 2017 which is less than 2% of the world total.   And this is growing by 18% per annum since 2014 which is higher than the world average growth rate of 12%.

In a study by sciencedirect.com, 80% of the digital platforms for eCommerce were founded in Africa and operate in more than one African market.  Of the foreign platforms, 70% operate in three or more African countries. 

DHL Africa eShop, which is now available in 20 countries across Sub-Saharan Africa, is paving the way for eCommerce and delivery of physical goods into South Africa, Nigeria, Kenya, Mauritius, Ghana, Senegal, Rwanda, Malawi, Botswana, Sierra Leone, Uganda, Cameroon, Democratic Republic of Congo, Cote d’Ivoire, Gabon, Gambia, Madagascar,  Mozambique, Tanzania and Zambia. The people in these countries can now shop directly from 200 US and UK-based online retailers according to an article in howwemadeitinafrica.com.

If you are an international eCommerce company expanding to Africa and looking for an African Payment Provider, please contact us at African Payment Solutions - through a single API we can collect payments at the checkout for you in local currency, with local payment methods, and repatriated to you wherever you are in the world.