As more Africans gain access to smartphones, the internet, and fintech, the continent is increasingly positioning itself as a lucrative marketing opportunity in the e-commerce industry, which, according to StockApps, will generate $46.1 billion in annual revenue by 2025.
Africa, with a current market value of $33.3 billion, is shaping up to be the next hotbed for internet-based firms. According to StockApps’ recent survey, as smartphones and the internet grow more common in African countries, the public has begun to turn toward online shopping.
Between 2017 and 2024, the continent’s e-commerce market is predicted to develop at a compound annual growth rate (CAGR) of 24.7%, according to Statista.
In 2017, the industry’s annual revenue sat at just $7.7billion, and it is expected to increase to $42.3billion in 2024. Thus, the yearly income stands to increase by almost 500 per cent in seven years.
The pandemic has aided the business in recent years, as it has everywhere else on the planet. As a result, the current increase in growth is likely to slow down in the following years.
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Last year, the African e-commerce industry generated $28 billion in revenue, representing a 31% yearly growth over the $21.4 billion generated in 2020. The yearly growth rate is predicted to progressively fall to 9% by 2025, according to the research.
The industry is predicted to generate $33.3 billion in revenue this year, up 19% from last year, and to climb 14.7 percent to $38.2 billion the following year.
The yearly growth rate will increase to 11% in 2024, with revenue of $42.3 billion. The yearly income will reach $46.1 billion in 2025, up 9% annually, and the user base will top 500 million by then.
The rising e-commerce user base across the continent is primarily responsible for the expansion of the African e-commerce business.
Only 138.9 million people in Africa shopped online in 2017, but that number is predicted to rise to 519.8 million by 2024, with a CAGR of 17.9%. It’s worth noting that the revenue growth rate is faster than the user base growth rate.
In addition, by 2024, e-commerce penetration in the African population is predicted to reach 40%. As a result, the African e-commerce business has plenty of space for expansion.
