21 Jan SOUTH AFRICA - Demographics, eCommerce Volumes, Appetite for Foreign Online Buying, Internet Penetration, Online Payment Methods, Capital Controls

African Payments

This is the fourth in a series of articles that focuses on providing multinational eCommerce companies with comprehensive information on the South African eCommerce and Online Payments market. 

South Africa’s burgeoning middle class disguises the polarised and one of the highest gini-coefficient populations in the world.  There is also a high rate of unemployment, particularly the less skilled members of the population.

When it comes to eCommerce, the more affluent and middle class income brackets are very accomplished online shoppers creating a market of about $200bn per annum.  The South African online retail market is well served relative to the rest of Africa.

South Africans (alongside Kenya and Nigeria) have a good appetite for UK, USA and Chinese goods and services and a high level of comfortability ordering and paying for overseas products.

Although a bit dated, 2017 stats indicate an online spend of almost $40 per capita, a projected eCommerce CAGR 2018-2022 of 10%, and internet penetration of 65% which would mostly be via mobile. Expected eCommerce volume in South Africa for 2022 is $4bn.  

The card mix for card-not-present is credit cards 25%, debit cards 16% (I am sure that by now this debit card percentage is significantly higher), bank transfer 20%, eWallets 17%, COD 12%.

South Africa has capital controls which is a whole topic on its own.  Funds coming into the country are less of a problem, but repatriation of funds to international eCommerce merchants needs to be reported into the South African Reserve Bank (SARB).

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Our thanks for stats, insights and inspiration to  . . 

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