African eCommerce could generate over $500 billion annually by 2030 — Mastercard Foundation

by | Feb 28, 2019

The Nigerian Startup Funding Report 2018 reveals that the eCommerce space in Nigeria is currently not in a good shape, as the level of attention that the sector got in the past is gradually dwindling.

For Foodlocker founder and CEO, Femi Aiki, eCommerce in Nigeria has not gotten to its tipping point yet. As it would turn out, Nigeria is not an isolated case, online commerce in some parts of Africa is still at its infancy stage.

In its recent report titled, ‘Digital Commerce and Youth Employment in Africa’, the Mastercard Foundation admits that eCommerce in Africa is just taking off. But it also affirms that given the presently healthy state of eCommerce in China, good things are bound to happen in the African space.

The report claims that eCommerce in Africa will be raking in more than US$500 billion a year by 2030, which will be about 16.7% of the continent’s economy by then.

Advertisement

The report further reveals that the expected growth in the eCommerce space in the continent will likely affect the livelihoods of up to 80 million new workers — more than 13% of the projected African labour force by 2030.

Beyond jobs for the teeming African labour force, companies that are providing a form of support system — like payment and logistics — for the sector would also benefit immensely from the growth.

Evidently, the future of the space belongs to the players that will be around by then because as more Africans go online, the total addressable market (TAM) even low at the moment would grow over time.

The migration of Africans from the rural to urban areas would also have a significant impact on the growth of the sector in the future. TAM for the likes of Easyshop Easycook as well as Supermartng will be on the rise since their proposition is providing convenience for people in the urban centres.

Yinka Awosanya
Yinka Awosanya

Mobile & African Tech Enthusiast │ Data Analyst │ Music

Advertisement


Are you in tech and you are looking at getting a foreign remote job or you want to move abroad? Fill this form and you will get the BEST resources to help you get that high paying remote job as well as japa easily! WAGMI!

Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments

Recent News

Kenya’s digital products for PwDs

Kenya’s digital products for PwDs

On #TechpointDigest, Victoria Fakiya (@latoria_ria) discusses what Jumia’s partnership with CGAP could mean, and Kenya’s digital products for people with disabilities.

Reclaiming stolen African artefacts

Reclaiming stolen African artefacts

On #TechpointDigest, Victoria Fakiya (@latoria_ria) discusses how Traction wants to stop fake alerts, Canza Finance’s journey, Esaal’s $1.7m seed round, and JABU’s $15m series A.

[PODCAST] Relooting African art with NFTs

[PODCAST] Relooting African art with NFTs

What do you think about an NFT project that wants to reclaim Africa’s lost artefacts? Well, the editorial team had some interesting thoughts, and you can listen to this and other stories on today’s episode of #TechpointAfricaPodcast.

$2 million to drive learning via WhatsApp 

$2 million to drive learning via WhatsApp 

On #TechpointDigest, we discuss how major players in the African mobility space can change the mobility narrative, FoondaMate’s $2 million funding, Twitter Create, and AMP’s $5.6 million seed round.

Subscribe to Techpoint Digest!

A daily 5-minute roundup of happenings in African and global tech, sent directly to your email inbox, between 5 a.m. and 7 a.m (WAT) every week day!

Please check your email to confirm your subscription.

Subscribe to Blockchain Explorer

Analysis oninnovation, regulations, and trends inthe blockchain sector, as it concerns Africa

Please check your email to confirm your subscription.

Subscribe to The Experts

A bi-weekly where tech career specialists take us on their journey from newbie to expert, and how they became successful in the industry.

Please check your email to confirm your subscription.

Subscribe to Founder's Table

A monthly series, where we catch up with founders in the startup ecosystem, learn about their failures, successes and a few tricks of the trade

Please check your email to confirm your subscription.

Copy link
Powered by Social Snap