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Where And Why African E-Commerce Is Growing

Africa, at least across its developing regions, is warming up to e-Commerce as an emerging trend. Internet penetration is up, therefore online shopper rates are up, too.

In fact, business consulting firm McKinsey and Co. reported that, according to AGI:  "consumer facing industries in Africa are predicted to grow over $400 billion in 2020." AIG has evaluated the top seven countries for technology and e-commerce growth across Africa. The company, which has nine active companies in more than 25 countries across Africa, reviewed independent studies, field surveys and research to conclude these seven were the top e-Commerce friendly countries.

The research looked at McKinsey's iGDP measure, which is the measure of Internet’s contribution to a country’s economic gain (iGDP). These are the top African countries where iGDP is significant:

  • Senegal: "This country leads the pack in Africa with an iGDP of 3.3 percent. ...The potential for this initiative has been recognized by a number of investors including IT giant Microsoft."
  • Kenya: "Close on the heels of Senegal is Kenya, with an iGDP of 2.9 percent. Kenya has launched a $14.5 billion project to build a city to shape African tech businesses – something similar to the Silicon Valley – called the African Silicon Savannah."
  • Morocco: "This North African country is growing fast and is well-positioned to become Africa's financial centre."
  • Mozambique: "Mozambique is on the international radar as one of the top three African countries with rapid growth. Recent collaborations with China have further enhanced its agricultural industry and, in addition to this, real estate and hospitality opportunities are abundant."
  • Nigeria: "The pride of Africa, being its largest economy, has an iGDP of 1.5 percent and is also the e-commerce hub of Africa with businesses like Jumia and Kaymu being popular among the fashion conscious urbanites who do not shy away from making purchases online."
  • South Africa: "Following Nigeria closely with an iGDP of 1.4 percent, it is among the most economically developed nations in Africa and it is one of the most receptive. South Africa has IT hubs all along the Western Cape province – among which is Silicon Cape."
  • Ghana: "Though last on the list, with an iGDP of 1.1 percent, it is definitely not the least. Only recently, the president of Ghana promised to build an IT city near Accra – the capital – with a total investment of about $5.2 billion."

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NEW PYMNTS STUDY: LEVERAGING THE DIGITAL BANKING SHIFT – SEPTEMBER 2020  

The September 2020 Leveraging The Digital Banking Shift Study, PYMNTS examines consumers’ growing use of online and mobile tools to open and manage accounts as well as the factors that are paramount in building and maintaining trust in the current economic environment. The report is based on a survey of nearly 2,200 account-holding U.S. consumers.

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