B2C e-commerce as percentage of GDP in the Middle East and Africa 2009-2018. . Moreover, the changing consumer inclination from brick-and-mortar retail channels towards online stores for hassle-free shopping experience is further augmenting the market growth. ITC Report Analyzes Africa's E-Commerce Potential. According to California-based mobile marketing analytics firm, AppsFlyer, eCommerce in Sub-Saharan Africa witnessed considerable growth in 2021. With a backing from the South African media giant, Naspers, Konga is now a major player in the e-commerce space. The South African e-commerce sector has seen massive growth since the start of 2020. According to the study, toward the end of 2018, eCommerce accounted for 1.4% of total retail revenue in South Africa. eCommerce Africa Highlights Revenue in the eCommerce market is projected to reach US$43.89bn in 2022. In the United States, the . With an increase of 19%, the South African eCommerce market contributed to the worldwide growth rate of 29% in 2021. helps in driving the . Business Insider cites FNB reporting a 30% growth rate in the first half of the year compared to 2019. Mercado Pago, in Argentina, saw a strong increase both in terms of . Benefits will include opening markets to otherwise isolated rural communities, servicing Africa's fast-growing consumer class, and offering women access to new business opportunities. E-commerce in Africa has been growing at very high rates in the last years. We saw less growth in the Middle East & Africa, 19.8%, but this is still a commendable growth rate. These technologies have . E-commerce spending on digital goods in South Africa was projected to grow by 46 percent between 2019 and the end of 2021, reaching $336m in total spend. So if you're in business then it is quite clear that the ecommerce landscape is one that simply cannot be ignored. Turbocharging e-commerce growth in Middle East & Africa | Turbocharge your growth without losing equity ! Abstract Trade in Africa has the potential to be revolutionized by Information Communication Technologies (ICTs), which have led to the development of e-commerce. In Africa, 40 percent annual growth in e-commerce activity is predicted over the next decade. Estimates suggest about 264 e-commerce start-ups are operational across the continent, active in at least 23 countries. eCommerce Growth in Africa. In South Africa, the market for online retail reached approximately R10 . The Challenges Facing E-Commerce Start-ups in Africa. Many countries are poorly prepared.One striking way that digitalization is impacting our economies is through growth in e-commerce. This growth offering has changed consumer habits. The report recommends countries develop modern . Revenue is expected to show an annual growth rate (CAGR 2022-2025) of 18.07%, resulting in a. Egypt, Kenya, Nigeria, and South . International E-Commerce in Africa: The Way Forward. Estimates show a positive growth of e-Commerce sales between 2009 and 2012 and Egypt has the largest e-commerce sales that reached 3.9 billion in 2012. Currently, these e-commerce startups in Africa are active in at least 23 countries and are projected to expand into the rest of Africa. The report notes that although e-commerce is spreading steadily in Sub-Saharan Africa, three economies namely Kenya South Africa, and Nigeria continue to dominate the e . 10. According to Statista, e-commerce businesses in Africa have a market base of 281 million online shoppers, with Nigeria, Kenya, Libya and Mauritius with the highest shares of internet users. A separate finding by statistics portal Statista shows that the total value of e-commerce in Africa reached US$16.5 billion in 2017 and is expected to reach $29 billion by 2022. This was in comparison to a 14% growth in GDP. A new study from Business Insider shows the value of SA's online retail has doubled in two years. The report notes that although e-commerce is spreading steadily in Sub-Saharan Africa, three economies namely Kenya South Africa, and Nigeria continue to dominate the e . Africa's economy has significantly expanded over the past decade, and increased digital connectivity is fostering the boom of eCommerce. Credit card and debit cards are the most preferred payment methods. Geneva: ITC, 2015. xii, 47 pages (Technical paper) Doc.No. The global e-commerce market size was valued at USD 9.09 trillion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 14.7% from 2020 to 2027. . 1. Revenues for eCommerce continue to increase. FlapKap | 671 followers on LinkedIn. Africa's great e-commerce potential Globally, roughly 45% of people are connected to the internet. 9. Increase in e-commerce due to COVID-19 in Africa 2021, by country. A report by ResearchAndMarkets.com shows that South Africa's e-commerce industry has long-term growth potential. The report uses a new International Trade Centre database of online marketplaces across Africa to examine the extent of e-commerce on the continent. Africa has one of the most digitally connected populations on the planet, with 400 million internet users. The report finds ten countries are responsible for 94% of all online business in Africa. A recent study conducted in South Africa by global market research company Ipsos, on behalf of PayPal and FNB, has revealed a growing interest by South African internet users to shop online. Currently, the prevalence of cybercrime in Africa has discouraged a . 18/8/2021. Online retail sales grew by an estimated 40% during lockdown, with . Founded by Rocket Internet AG 7 years ago, this e-commerce site has grown massively to become one of SA's most significant in that line of business. E-commerce in Dubai has taken a turn for an increase as several Dubai e-commerce sites provide these services. With a global recovery under way, questions have been raised on how this growth can be . There are currently 18.43 million ecommerce users in South Africa, with an additional 6.36 million users expected to be shopping online by 2021 and spending a predicted average of 189.47 USD online (Eshopworld, 2017). growth across Africa, with e-commerce likely to create as many as 3 million jobs by 2025. UNCTAD estimates that the business-to- consumer (B2C) e-commerce market in Africa was worth about US$ 5.7 billion in 2017, amounting to less than 0.5 per cent of the continent's GDP and below the global average of more than 4 per cent (Africa eCommerce Week, 2018). The coronavirus pandemic triggered an e-commerce boom in sub-Saharan. . During the same year, global e-retail sales amounted to $2.8 trillion, with projected growth of up to $4.8 trillion by 2021. According to Statista, overall growth across the . The Rise of Ecommerce in Africa Watch on African online retail has been growing fast in recent years and this trend is forecasted to continue. To realise the benefits fully, though, e-commerce businesses and entrepreneurs will need to overcome a number of challenges. The explosive growth of e-commerce in South Africa. The lockdown occasioned by the coronavirus pandemic saw new e-commerce users rise by 5 percent in Sub-Saharan Africa in 2020, when compared to the active base the previous year. Abstract. South African e commerce is booming, following a 50% rise in online spending compared to the previous year. The global growth rate of e-commerce is 16.8%; Africa's e-commerce space is growing at a rate of 25.8%. With a 37% e-commerce penetration, approximately 22 million consumers shopped The U.S. version of Amazon.com is the third most visited e-commerce website in South Africa. The growth in Africa's e-commerce market is largely attributed to the upsurge in the size of the middle class and the rapid mobile phone penetration. In 2013, MEA region accounted for 2.2% of global B2C e-commerce. Probably unknown to many, Kenya and Uganda were the first countries to introduce mobile payments in the mid-2000s. Growth rates observed for online retail are as high as between 25% and 50%. There was a 55% increase in online retail spending, even as the volume of downloads and installation of eCommerce apps on Android and iOS also grew, standing at 55% and 32%, respectively. However, investor and serial entrepreneur Marek Zmyslowski urges businesses to employ a more level-headed approach to mapping e-commerce growth on the continent. By 2019, Mobile Money had 1 billion registered users in Africa. In 2020, South Africa eCommerce grew by 66% compared to the year before. Looking forward, IMARC Group expects the market to continue its robust growth during 2021-2026. In Africa, Jumia enforced the use of digital payments in countries such as Kenya, as it temporarily discontinued cash on delivery. In 2019-20, UAE residents spent an average of $122 per e-commerce . Growth in e-commerce more than doubled, averaging 88% annually between 2013 and 2016, while e-commerce penetration grew from 0.4% in 2013 to 1.8% in 2016. Several factors are contributing to this impressive. . The startup also has its eyes on the growing e-commerce market in East Africa, with the long-term goal of growing into a pan-African shipping logistics provider - by tapping the e-commerce . Source : UNCTAD 2015. E-commerce now outpaces retail shopping for growth in Africa, and projections have it that by 2023 the amount of money spent via e-commerce will double. Due to the growth of credit card fraud, the Payment Association of South Africa mandated the use of 3D Secure . There are several e-commerce companies in Dubai and various e-commerce websites in the UAE and other Middle East countries. These predictions are optimistic and alluring, but, we should not simply rely solely on them. Just in 2020, the country's average eCommerce spend in the first half of the year increased by 30% compared to the year before. The growth of e-commerce has also contributed to an increase in digital financial services provided to small businesses and consumers. Jumia is also among Africa's best-funded e-commerce sites, having raised US $150 million in funding in 2014. Across the globe, e-commerce is thriving. ECOM Africa brings together best-in-class agencies, experts, leaders, and entrepreneurs on the cutting edge of business ops, store design and optimization, fulfilment and logistics, payments and security, and marketing and brand building for a two-day jam-packed conference and exhibition to lead the way and get you and your team ready for the next phase of growth. Since then, South Africa has seen a higher increase than they predicted, tipping R42 billion in sales in 2021. Sacha Poignonnec, cofounder and co-CEO of Jumia, Africa's largest internet group, discusses why the e-commerce opportunity in Africa is so great for companies large and small in this interview with McKinsey's Georges Desvaux. Published Date: May, 2020 . According to the report by Renub Research, titled "South Africa E-Commerce Market, Size, Forecast 2022-2027, Industry Trends, Share, Growth, Impact of COVID-19, Opportunity Company Analysis" the South Africa E-Commerce Market Size was USD 4.5 Billion in 2021. However, e-commerce penetration in South Africa is still low reaching 1.4% in 2019, hence there is room for growth, particularly for the logistics sector. The chart below from eMarketer's 2021 global e-commerce report breaks down regional e-commerce growth last year. The coronavirus pandemic triggered an e-commerce boom in sub-Saharan Africa, alongside the rest of the world. Zando, being a subsidiary to a parent company, The Jumia Group, operates as a fashion retailer that sells over 500 brands. Exclusive Books. In increasing online shopping in South Africa presents an exciting growth opportunity for retailers, manufacturers and wholesalers. According to a report by Statista, e-commerce in Africa was valued at 16.5 billion dollars in 2017. Realizing this This has been spurred by the COVID-19 pandemic. In comparison to European markets, South Africa's ecommerce industry is still in its infancy with only a quarter of spending through digital channels. According to analysts at Statista.com, e-commerce in Rwanda was projected to reach USD 79 million in 2021, with an annual growth of around 12.5% year-on-year until 2025. This creates both opportunities and challenges, calling for changes to existing policies and adoption of new policies in many areas. The uptick in online sales follows years of growth in the sector . E-commerce in Africa is well under way. 15 January 2021. B2C), By Region (North America, Europe, APAC, Latin America, Middle East & Africa), And Segment Forecasts, 2020 - 2027. Kenya and Ghana registered an increment of 79 percent in online purchases. South Africa's eCommerce sector is rapidly growing now more than it has ever before. Keeping in mind the uncertainties of COVID-19, we are continuously tracking and evaluating the direct as well as the indirect influence of the pandemic on different end use . In Africa, the number of online shoppers has increased by an average of 18 percent every year since 2014, with similar growth anticipated over the next decade. The growth of e-commerce is a unique opportunity to open access to international markets for small and medium-sized enterprises (SMEs) in developing and least developed countries (LDCs). In Africa, the increasing penetration of smart devices along with the growing internet connectivity has led to the emergence of e-commerce platforms. Source:Authors, based on Global Findex data. South African online sales increased by 66% from 2019 to 2020 to more than $1.8 billion (ZAR30 billion). E-commerce accounted for only 1.6%, or $1.2 billion, of South African retail sales in 2019, according to London-based market research firm Euromonitor International. South Africa's eCommerce sector is rapidly growing now more than it has ever before. The share of imports remains high in the Middle East and North Africa e-commerce market, filling the supply gap. Of course, the evolution of ecommerce is not the same for all the African countries. E-commerce market size MENA region 2014-2017. In fact, according to PayFort, the Middle East e-commerce market would grow to US$69 billion by 2020, almost doubling in size in just a few years. Meanwhile, in some of Africa's biggest markets, a majority of internet users already shop online or expect to do so in the future. Through its vast population, Africa has a very large digital audience. Enthusiasm surrounding e-commerce in Africa is arguably at an all-time high, driven in part by the consumer shift to online as a result of the Covid-19 pandemic. EC-15-364.E . IFC's latest report shows that this growth could be even higher if we invest in the women entrepreneurs on e-commerce platforms. 10 These three categories present e-commerce with a significant growth . It states that the E-commerce Agent Operation Service market is anticipated to showcase a y-o-y growth rate of XX% between the years 2020 and 2025. Africa's recent economic growth rates and rising youth population have meant more and more entrepreneurs are looking there for potential . This article is published in collaboration with Quartz Africa. Companies such as Jumia, a Lagos-based online retailer, are dipping their finger in almost all major markets on the continent, cutting themselves an enviable piece of every pie. Groceries saw an increase of 54 percent from 2019, driven by the pandemic and lockdown restrictions. Africa's e-commerce market could be worth more if more than half of the region's population adopt online shopping. This increase was primarily influenced by the restrictions placed on traditional retail stores that led to the reduction of in-store shopping by 30% . The eCommerce market in South Africa South Africa is the 41st largest market for eCommerce with a revenue of US$5 billion in 2021, placing it ahead of Iraq and behind Philippines. There's significant potential to create new jobs - as many as 3 million by 2025. What's more, there was a 129 . In 2019, Deloitte Africa estimated a 13% growth in online sales. The burst to a 66% growth rate for e-commerce was mostly due to the . Staff Writer 21 March 2022. Despite the Covid-19 outbreak, eCommerce and eLogistics have proven broadly resilient, as digital connectivity and services have been widely used to support business . This Statista Dossier provides the key information. The top e-Commerce product category in South Africa behind data and airtime is clothing and apparel followed by online entertainment. . Zando. What this means is that there is still a growth expectancy of about 40% as regards the internet market in Nigeria. Middle . In 2014, Naspers, which has a 50% stake in Konga, invested US $50 million in the online store. A separate finding by statistics portal Statista shows that the total value of e-commerce in Africa reached US$16.5 billion in 2017 and is expected to reach $29 billion by 2022. The world is increasingly going digital. These jobs will be directly in online marketplaces, supporting services and spin-off economic activity. Leading the way, Latin America grew 36.7%. Another report by the consulting firm McKinsey, states that this value could well go up to 75 billion dollars by 2025. Established in 1999, South Africa's online store Bidorbuy is one of the oldest online marketplaces in Africa. The launch of Amazon Prime in 2016 served as another catalyst, with e . This has been bolstered significantly by. Online Payment . The pandemic led to widespread growth in e-commerce in sub-Saharan Africa. A study by World Wide Worx illustrates this growth in eCommerce in South Africa. This is clearly illustrated in the fact that despite a 26% growth in online retail in 2015 amounting to R7.5bn, this still constituted only 1% of total retail sales (compared to 8% in the US for . Mobile payment systems outlined accelerated growth for the e-commerce industry as it has proven to be a more effective medium for transactions. Africa presents vast opportunities in e-commerce. E-commerce industry as already identified with a rapid growth rate and a growing market size of $17 billion in 2019 which also indicate a gradual adoption of the online marketplace by consumers. Africa's e-commerce giant, Jumia, appears to be one of the companies benefiting from a virus-driven bump in online sales. Despite these obstacles, the UAE continues to lead the pack when it comes to the average size of e-commerce transactions. E-commerce in South Africa is still in a nascent stage compared to developed countries. Forbes reported in April 2020 that US retailers' online year-over-year (YoY) revenue growth was up 68% from 2019, surpassing an earlier peak of 49% in early January. Africa's recent growth in online technology has allowed the continent to join in on a new, digital economy. 6 min. However, there is no doubt that growth is strong thanks to high mobile penetration . 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