According to EIU, Africa’s e-commerce potential is projected to reach $50-$75 billion within the next 5-10 years. It noted that Nigeria’s business environment is more positioned to benefits most from the growth in the e-commerce industry.
The report relied on data generated by the research and analysis division of the Economist Group to arrive at this conclusion.
“The retail sector in Africa is changing rapidly, as e-commerce opens up opportunities for both companies and consumers."
"Smartphones are increasingly used by consumers as a gateway tool to the internet, facilitating the growth of online retail in powerful ways,” the EIU stated
To Lead other African countries, Nigeria scored 80.4 out of 100. Thus, ranking the country with the greatest potential within the wider e-commerce market in the continent. Also, the report noted that Jumia, Jiji and Konga are top three e-commerce platforms in Nigeria.
“This is backed up by the plethora of activity in the market, with Nigeria the focal point for a significant amount of e-commerce growth in the region. The country’s three main online retailers— Jumia, Jiji and Konga—serve a mass-market clientele. Jumia celebrated its fifth anniversary in June, has become the first company to surpass US$1bn in market value on the continent in February 2016.”
In Nigeria, consumers’ enthusiasm towards online shopping is on the increase among middle-class family. Similar trend is also noted in many countries across the sub-Saharan Africa.
“Given that e-commerce in sub-Saharan Africa is concentrated among the middle class, which has been squeezed by the economic downturn, online sales have thus also suffered. Nonetheless, mall construction has resumed and their number now stands at around a dozen,” the EIU stated.
E-commerce platforms are fast strategies to attract more of the growing middle class in Africa. Services are being extended to many rural areas, banking on increasing in internet penetration in the Africa.
Growing interest in fashion and grocery stores also have increased sales in the e-commerce industry.
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