Africa's e-commerce market has broad prospects, and social e-commerce may be the key

Technological advances have brought revolutionary changes to all walks of life in Africa , especially the emerging e-commerce industry, which has completely changed the way the retail industry operates and enabled hundreds of thousands of small and medium-sized enterprises on the continent to reach a huge potential customer base .

In September this year , the second Africa Future Business Conference was held in Lagos , where business leaders, experts and retail operators from around the world discussed how social media, online payments, agent networks and social commerce will drive the growth of Africa's e-commerce market.

Africa is now one of the fastest-growing e-commerce markets in the world, with social commerce – the use of social media platforms to promote and sell products and services – contributing significantly to this growth .

According to a social e-commerce survey in the first quarter of 2022 , the relevant industry in Africa and the Middle East is expected to grow at an annual rate of 70.3% to reach a scale of US $8 billion by the end of 2022. Statista data also shows that by 2025, global sales through social media channels are expected to nearly triple.

At the heart of the social e-commerce revolution on the African continent is the widespread use of mobile payment systems, which make transactions between consumers and merchants simpler and more convenient .

However, at present, more than 90% of transactions in Kenya are still paid in cash. Therefore, there is still huge room for growth in the field of mobile payments in Africa .

Also driving this trend hand in hand with mobile payments is the expansion of agent banking across Africa , a branchless banking business where traditional banks expand their service networks through authorized agents , who usually operate through POS terminals.

It is reported that the concept of POS machines was first introduced to Nigeria in 2012. POS machines became more and more popular during the epidemic , when banks closed a large number of branches due to control requirements . According to Statista, the number of POS machines in Nigeria increased from 150,000 in 2017 to 543,000 in April 2021.

Africa’s vibrant e-commerce sector is poised to take off , but it is clear that if small and medium-sized enterprises want to maximize this opportunity, they will need relevant policies and continued support from local consumers.

Africa

E-commerce