Revenue in the e-commerce market in Africa is projected to reach US$40.80bn and expected to show an annual growth rate (CAGR 2023-2027) of 13.53% by year-end 2023, information on Statista has shown.
This is even as the e-ordering market in Africa is growing rapidly due to increased internet penetration and smartphone usage. But despite the rapid growth of the e-commerce sector on the continent, online shopping in Africa is still under the global average, even in Africa’s driving markets.
According to Statista, African online retail has been growing fast in recent years and this trend is forecasted to continue, with several factors such as the youngest and second largest population in the world contributing to this growth.
Also, internet penetration has been rising due to the broad expansion of smartphones and mobile devices in general, even as mobile e-commerce is touted to dominate the online shopping scene.
Meanwhile, in a report earlier released, Nigeria, South Africa, Kenya, Morocco and Egypt are seen as Africa’s most competitive markets, where special attention should be paid.
The report believes that in these markets, online retail is booming largely because of companies such as Jumia, Konga, takealot, and Kilimall. Nigeria is the headquarters of two popular online marketplaces in Africa, Jumia and Konga. South Africa is home to takealot.com, the largest e-commerce platform in the country, while Kilimall was founded in Kenya.
Also in a survey conducted by Statista in several African countries, Nigeria, South Africa, Morocco, Kenya, and Egypt prefer to buy online. In all these countries, digital buyers started to purchase clothing, shoes, and consumer electronics online.