The economic growth trends in Sub – Sahara Africa have attracted many businesses to take a role in this continent’s market potential. Since the digital technology is growing fast worldwide, online transactions become one of the new lifestyle not only for Western people, but also Africans.

Online marketplaces expansion in Africa, although their existances are not as many as in the other developing countries. But they are projected to have potential growth in the future.

The Role of Advertising to Consumer Behavior

Some studies show that advertising products in several Africa countries have significant impact to rise certain brand awareness. In order to make the advertising efforts from companies to be successful the companies have to implement right strategies.

The Condition of Internet Penetration and Its Impact toward Marketplace Businesses

Like most of the developing countries, Africa still has to deal with the lack of internet access. The average percentage number of people in Africa who have already some form of internet access is only 40% and it is dominated from urban parts of Africa.

Kenya is the country in Africa that has highest internet accessibility with more than 80% people who live in the cities already have access toward internet. Meanwhile, the number will drop significantly when people from rural areas of Africa take into account.

The group of people in Africa who have internet access is dominated by higher household income. Although there are still many poor people get the ways to connect to the internet.

Up to 90% of Africans who have access to internet are using smartphone as their devices. The type of connections are mostly 3G network. Therefore, companies who want to develop their online marketplaces here, need to consider the speed of 3G connections toward their website and e – commerce design.

Consumer Behavior in Africa

Millenials are the group of people in Africa who actively using the internet. Almost three – quarters of internet users in several Africa countries such as Uganda and Algeria are dominated by young generations. Therefore, the emerging growth of e – commerces in Africa are targeting young generation.

But, most of these youngsters are using internet to get information about the products they want to shop offline. For example, if they want to shop certain footwear, they will look for the price information and product specifications first through internet before going to the retail stores.

Most Africans prefer to shop in traditional retail channels such as kiosk, general stores, markets, street hawkers and so on. Even the number of people who visit traditional retail channels are four times higher than the number of people who visit modern channels.

But of course

it does not mean that there is no future for online marketplaces in this continent. There are several indigenous players who successfully gain many attention from people.