08 Jun VIDEO AND BLOG: A Resilient Sub-Saharan Africa Economy Looking good for eCommerce and Payments in 2021
Sub-Saharan Africa GDP growth is expected to go from 3.1% in 2019 to negative 1.6% in 2020 and 4.1% in 2021. Closing down their borders and economies quickly was a good move by key eCommerce territories like South Africa, Nigeria and Kenya. Other high growth countries like Ghana, Côte d'Ivoire, Senegal, Ethiopia and Tanzania will grow slower but still have positive growth rates mainly because they are less affected by drop in demand for resources. The mainstay vertical of tourism and travel will be hit hard with estimated overall losses of USD 50bn, passenger revenue losses of USD 6bn, and job losses of around 2m. Export revenue from fuel will drop by 35%. Foreign Direct Investment could drop by between 5% and 15% and infrastructural investment by 25%. Remittances in round numbers will be down by around 20% from USD 60bn to USD 50bn. Interestingly this scenario puts Sub-Saharan Africa in a relatively good position as compared to more developed markets. Africans are generally resilient and always building something. This abnormal situation is another day in the life for African businesses and consumers. We expect a lot of good things to come to “Amorphous Africa” as a result of this global shock which is rattling the comfort zones of the more sheltered developed markets. Our services include: