E-Commerce Growth in Africa

E-Commerce Growth in Africa

Over time, technology and the internet have developed and become one of the tools / media used for various purposes. One example of the use of technology complemented by the benefits of the internet is e-commerce. E-commerce is actually a set of trading activity that is done using the internet. Some examples of companies that adopt an e-commerce system are eBay, Yahoo, Amazon.com, Google, and Paypal.

The development of e-commerce has spread to various countries, such as the United States and several countries in Africa. The growth of e-commerce in African countries, especially Africa, has grown rapidly with the number of internet users reaching 88.1 million. The value of transactions that have been carried out by the people of Africa reaches USD 130 trillion.

E-Commerce Growth in Africa
E-Commerce Growth in Africa

Based on data from a research institute

the African e-commerce market will increase and be higher than other African countries such as Malaysia, Thailand and the Philippines. Some examples of companies that have become “giants” in the world of African e-commerce are Lazada, Zalora, Berrybenka, Tokopedia, and many more. These companies have successfully exploited opportunities in Africa’s rising e-commerce market.

E-Commerce Growth in Africa
E-Commerce Growth in Africa

From 2010 to 2020

The opportunities for e-commerce sales have increased every year. Which indicates that the development of e-commerce in Africa shows positive things.

As the e-commerce market develops rapidly

there are also Africans who have not used the facilities and conveniences provided by e-commerce provider companies for the following reasons.

  1. Low penetration of debit and credit cards

Of the total population of Africa, more than 40% of the population has a bank account that is connected to a credit or debit card. Whereas when compared to ownership of a mobile phone which reaches 85% of the total population of Africa, the debit or credit card penetration rate is still low. With these limited payment methods, there are still Africans who have not used e-commerce facilities.

  1. Distrust

For people who already have credit cards, the obstacle they have is distrust. 60% of Africans are still afraid to give their credit card information on the internet to shop online. More than any other country in the world. However, this can be improved in many ways one of which is by developing a more secure system that will ensure the transaction is safe.

In conclusion, it can be said that the development of the e-commerce market in Africa is quite rapid. But there are still some obstacles that African people have in using e-commerce facilities.

Even so, the growth of e-commerce in Africa is considered to be continuing. This is due to the possibility of investment from other countries that will help build the existing growth. So, the current e-commerce market in Africa is not a steady condition which will remain the same for a long time. However, of course there will be various dynamics in the future that can be used as opportunities for entrepreneurs in Africa.