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Why is E-Commerce in Africa Growing at Such a Fast Rate?
In the past, e-commerce in Africa was uncommon. Most people in this part of the world would buy their goods from small shops, open-air markets, kiosks, street hawkers, and tabletop sales. However, recently in Africa, e-commerce has seen a huge rise with many the informal sellers choosing to open a business online.
Over the last few years, we’ve seen the e-commerce sector in Africa grow at an extremely fast rate, in fact, between 2019 and 2020 e-commerce grew a whopping 57%, and this growth is expected to continue over the next few years, but why is this? Keep reading below to find out why e-commerce has become so popular in this part of the world:
1. The Age of the Population in Africa
One of the main reasons why e-commerce is growing at such a fast rate is because of the age of the population. The population in Africa is not only the youngest, but it is also the second largest in the world. Thanks to this, there is a huge potential for a large digital audience.
2. Many E-Commerce Businesses Offer Promotions and Discounts
Another huge reason why people are choosing to shop online instead of in-store is that many online businesses have started offering their customers some amazing promotions and discounts, such as the Jumia coupon Egypt.
3. Increase in the Number of People Using Technology
Over the last few years, the number of people using technology such as laptops and smartphones has sharply increased in Africa. In the past, very few people had access to these types of technology, which meant that e-commerce businesses in this part of the world only had a very small audience. Now, this has changed, they are able to reach a much larger proportion of the population.
4. Digital Payments Are Becoming More Common
While owning and using a credit card in Africa is still considered unusual, there have been changes in this part of the world. One of the main changes we’ve seen is an increase in the number of people using digital payments when shopping online.
5. COVID-19 Pandemic
One of the biggest reasons why businesses in Africa chose to set up an e-commerce store was because of the COVID-19 pandemic. The pandemic meant that businesses were no longer able to interact with their customers in the same way as before. This was because precautions had to be put in place to limit the spread of the disease. One of the easiest ways to help prevent the spread of COVID-19 was to encourage customers to shop online rather than in person.
Over the last few years, we’ve seen a huge increase in the number of companies setting up their online business. One of the main reasons for this was the COVID-19 pandemic, which prevented businesses from operating as usual; however, this was not the only reason for the growth. Another reason why e-commerce has grown in Africa is because of the technological advances that have occurred there. Over the next few years, we expect to see e-commerce continue to grow in this part of the world.