African e-commerce is exploding, and it’s just the beginning as reported by TNW… Full report here
In seven Subsaharan countries, e-commerce makes up one to three percent of GDP, and is predicted to make up 10 percent of total retail sales in key markets by 2025, with 40 percent annual growth over the next 10 years. The total retail economy is projected to grow rapidly, along with the population as a whole and its spending power per capita (for instance, see this KPMG report). Africa has a rapidly growing communications infrastructure, with broadband fiberoptic cables being deployed along the coast and 4G networks rolling out internet to the interior. The smartphone market is also growing rapidly, allowing an increasing portion of the population (which is growing and getting richer) to use those networks to their full capacity.
All of this adds up to one thing – massive economic growth for e-commerce in Africa.
But to have opportunity, you need challenges and inefficiency. Africa has those in heaps. E-commerce companies focused on Africa have been closing almost as fastas they’ve been opening. This great article in Harvard Business Review by Ekekwe pours a bucket of cold water on the sunny predictions and lists the major roadblocks to success.
Let’s start a conversation about gaps that have to be filled to realize the massive growth projections for African e-commerce, and some ways entrepreneurs and startups can fill those gaps.
TNWs’ report is apt! They have raised other points which outlines the gaps most may have solutions to thus… access to this growing market… Read full report here