Digital commerce in Africa's leading markets to hit $72bn by 2026
TLDR
- Africa's online consumer class is expected to grow significantly, with 10 million new consumers anticipated in 2024, positioning the continent as a pivotal market for digital commerce.
- Africa's online sales are increasing at a rapid rate of 25%, surpassing the growth rate in developed countries at 13%, according to Payments and Commerce Market Intelligence (PCMI).
- By 2026, the digital commerce market in Africa is forecasted to reach $72 billion, with top markets including Egypt, Kenya, Morocco, Nigeria, and South Africa driving this growth.
Africa has emerged as a frontier for the burgeoning online consumer class, with an estimated 10 million new consumers expected in 2024, second only to Asia as a region. This insight comes from the annual Beyond Borders digital payments and commerce report released by fintech company EBANX.
While digital commerce in developed countries is growing at a rate of 13% annually, Africa is experiencing even more rapid expansion, with online sales increasing by 25%, as highlighted by Payments and Commerce Market Intelligence (PCMI).
By 2026, the digital commerce market in Africa is projected to reach a total value of $72 billion across its top five markets: Egypt, Kenya, Morocco, Nigeria, and South Africa. Furthermore, over the next decade, Africa is expected to contribute more to consumer spending than Europe.
Key Takeaways
Digitization is profoundly transforming African markets, with internet access forecasted to become nearly ubiquitous in certain regions by 2028. Egypt is expected to witness the most remarkable surge, with internet penetration projected to more than double, reaching 98%. However, despite this widespread connectivity, only 44% of African adults engage in online purchases, according to data from Insider Intelligence and PCMI, highlighting a significant untapped potential for growth. Online retail stands out as the dominant force in Africa's digital commerce landscape, representing 58% of the digital volume in 2023 across key countries such as Egypt, Kenya, Morocco, Nigeria, and South Africa. This underscores the pivotal role of e-commerce in driving the continent's digital economy forward.
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