05 Dec The State of eCommerce, Logistics and Online Payments Across Africa

The local demand for eCommerce and the high level of venture capital and private equity investment in African eCommerce companies is driving the growth of eCommerce logistics across Sub-Saharan Africa which is in turn driving online payments by African payment providers.

The large eCommerce companies have been driving a unique industry of logistics and product delivery that suits the lack of infrastructure across Africa.    eCommerce is expected to grow to $29bn in 2025 and some of the big guys are Jumia (Nigeria-based, into 14 more countries and almost $300m in annual sales), Takealot (the eCommerce market leading online retailer in South Africa), Mall for Africa (based in Kenya and serving 15 countries) and Masoko (marketplace from Safaricom (M-Pesa’s parent co) leveraging 20m active M-Pesa users), and DHL Africa eShop (which is now in more than 20 countries across Sub-Saharan Africa).

According to The Africa Report, the average distance between cities in Africa is more than three times that in Europe and four times the USA. The above companies have been pioneers in African delivery and logistics:  DHL Africa eShop delivers to your door, via DHL Express, products from more than 200 UK and US retailers. Masoko from Safaricom facilitates distribution using its almost 200,000 mobile money agents. Takealot bought out Mr Delivery a food delivery service to catalyse its distribution systems.  Jumia has more than 500 bikes that deliver eCommerce products to consumers.

In terms of online payment, you are good to go with mobile money like M-Pesa, TigoPesa, MTN Mobile Money and Airtel Money.  And cards in South Africa and Nigeria. Please contact us at African Payment Solutions for your online and eCommerce payment needs across Sub-Saharan Africa.

A big thanks for inspiration to https://www.gsma.com/r/mobileeconomy/sub-saharan-africa/ and https://www.thepaypers.com/reports/payments-and-commerce-market-guide-2018-2019/r775814 and The African Report.