by SAVIOUS KWINIKA
JOHANNESBURG, (CAJ News) – THE African electronic commerce (e-commerce) market is projected to reach annual revenues of US$46,1 billion by 2025.
This as smartphones and internet technologies become increasingly accessible in the continent, making it a lucrative market for the e-commerce industry.
The market is said to be worth $33,3 billion currently (an increase of 19 percent), as Africa is shaping up to be the next hotbed for internet-based businesses.
This is according to numbers presented by StockApps.
Statistics, forecast the African e-commerce industry to grow at a compound annual growth rate (CAGR) of 24,7 percent between 2017 and 2024.
In 2017, the industry’s annual revenue was at $7,7 billion, and it is expected to increase to $42,3 billion in 2024.
Thus, according to the statistics, the yearly income stands to increase by a staggering almost 500 percent in seven years.
The African population has been shifting towards online shopping as smartphones and the internet become more prevalent in local countries and, according to StockApps, the COVID-19 outbreak has also accelerated the industry.
This is a global trend since the pandemic.
“The growth in the African e-commerce industry is primarily down to the expanding e-commerce user base on the continent,” said Vyom Chaudhary, an editor at StockApps.
In 2017, some 138,9 million people shopped online in Africa.
This figure is expected to grow up to 519.8 million in 2024, at a CAGR of 17,9 percent.
“It is interesting to note that the revenue growth rate is higher than that of the user base,” Chaudhary said.
Furthermore, the e-commerce penetration in the African population in 2024 is expected to be 40 percent.
“Therefore, there is significant room for further growth in the African e-commerce industry,” Chaudhary concluded.
– CAJ News