Africa Could Reach 40% E-shoppers by 2025, Report Forecasts

By : Melchior Koba

Date : mardi, 08 octobre 2024 12:31

E-commerce is flourishing in Africa, driven by its youthful, tech-savvy population and ongoing efforts to integrate economies across the continent.

In 2017, only 13% of Africans shopped online. However, according to a July 2024 report by cross-border payments company Nikulipe, this figure could soar to 40% by the end of 2025. This growth positions e-commerce as a key driver for strengthening intra-African trade.

Nikulipe's report, "Payments and E-commerce in Africa 2024," forecasts the African online commerce market to increase by $15 billion by 2028, representing a nearly 49% growth over four years. Data from Statista supports this trend, predicting an average annual growth rate of 11.7% between 2024 and 2028. This implies that the market size could double compared to 2023, when revenues stood at $16.1 billion.

Driving this expansion is a young, digitally connected population. With a median age of 19.7 years and over 1.4 billion people, Africa has significant demographic potential. Furthermore, internet usage has increased dramatically over the past decade, rising from 16% in 2013 to 37% in 2023, according to the International Telecommunication Union.

Despite this potential, intra-African e-commerce faces several challenges. According to a Trade Organization (WTO) report, inadequate infrastructure complicates cross-border trade. Additionally, the lack of harmonized e-commerce regulations between African countries adds to the complexity of cross-border transactions.

Toward Continental Trade Integration

Several initiatives are underway to facilitate intra-African trade. The African Continental Free Trade Area (AfCFTA) has introduced a digital trade protocol aimed at harmonizing regulations and simplifying online exchanges between African countries. Regional projects, such as the COMESA Digital Free Trade Area, also encourage e-commerce and digital integration among member states.

More African e-commerce players are expanding their reach across the continent. Jumia, a pan-African online retail company, operates in 11 countries and attracts 5.7 million active consumers worldwide. Anka Africa, based in Côte d'Ivoire, hosts over 20,000 online stores across 46 African countries, drawing more than one million visitors per month.

These platforms facilitate trade between African countries by providing a digital showcase for local producers and simplifying cross-border logistics.

Melchior Koba

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