Middle class growth driving B2C e-commerce in Africa

Research and Markets Africa B2C E-Commerce Report – 2013 indicates that growing Internet penetration, the spread of mobile technology and improvement of payment and delivery infrastructure are factors that can boost E-Commerce on the continent.

Research and Markets CEO Yücel Yelken says E-Commerce has high potential in Africa as the growing middle class seeks more convenient shopping and better price quality, driving local and international Internet merchants to operate in the region.

The report notes that several strong local players have already emerged, such as South Africa’s online fashion retailer Zando, and Nigeria’s online mass merchants Jumia and Konga. B2C E-Commerce sales were less than EUR 1 billion in 2012, but annual growth of around 40% is forecasted in the next ten years. The main obstacles to overcome on the way to B2C E-Commerce boom are poor logistics in rural areas, low banking penetration and limited consumer awareness.

M-Commerce and mobile payment especially have a high potential on the continent, where mobile phones are more widespread than computers, a significant proportion of the population has no banking relationship and the most common type of Internet access is through a mobile device. Moreover, over 10% of active Internet users in Africa shopped on mobile in 2013. In terms of mobile shopper penetration, Nigeria, Egypt and Morocco are ahead of South Africa, says the report.

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