Hamburg, Germany – April 11, 2024 – Today, yStats.com, a leading provider of secondary market research, unveils its latest market report titled “Africa B2C E-Commerce Market 2024,” shedding light on the dynamic landscape of online commerce across the continent.
Following the release of last months reports covering the Middle East, Latin America, and Asia Pacific, yStats.com continues its deep dive into global markets with a comprehensive analysis of Africa’s burgeoning E-Commerce sector.
The report reveals a seismic shift from cash to digital and instant payments sweeping across Africa, exemplified by Nigeria’s remarkable drop in cash transactions from 95% in 2019 to 80% in 2022. This transition underscores the continent’s embrace of digital wallets and instant payment systems, which are rapidly becoming consistent, bolstering financial inclusion and efficiency.
“Africa’s E-Commerce landscape is undergoing a transformative evolution, driven by technological innovation and shifting consumer preferences,” says Yücel Yelken, Founder and CEO of yStats.com. “Our latest report captures the dynamism of this market, offering invaluable insights for businesses seeking to capitalize on the continent’s digital revolution.”
Africa’s digital payment ecosystem is witnessing unprecedented growth, fueled by strategic partnerships such as Mastercard and Mono’s collaboration in Nigeria, introducing ‘Pay with Bank’ for seamless account-to-account transactions. Additionally, innovative entries like Unlimit’s expansion into Tanzania are poised to revolutionize financial services, promising comprehensive solutions to enhance digital commerce and financial inclusion.
Moreover, Africa’s adoption of cryptocurrencies as alternatives to traditional financial systems signals a paradigm shift, particularly evident in countries like Zimbabwe. With a young demographic spearheading this movement, coupled with initiatives like the Bitcoin Lightning Network, Africa is poised to take strong steps towards the adoption of digital currency despite regulatory and infrastructural challenges.
In the realm of B2C E-Commerce, key players like Amazon, Jumia, Takealot, and Konga are driving innovation and competition, offering diverse consumer experiences tailored to local needs. Amazon’s imminent launch in South Africa is poised to reshape the market, while companies like Takealot and Konga fortify their positions through infrastructure enhancement and strategic partnerships.
According to estimates, 3.5% of total retail sales in Africa were conducted online in 2023, signaling a significant opportunity for growth. However, challenges persist, with MSMEs citing unreliable access to electricity and consumer trust issues as primary concerns.
Looking ahead, Nigeria forecasts a staggering rise in real-time payment transactions, reaching 8.9 billion by 2027, while Kenya must prioritize digital infrastructure integration and regulatory reforms to optimize E-Commerce growth. In Egypt, the dominance of social media channels in MSME sales underscores the evolving nature of online commerce.
