Online shopping is booming across Africa, with the digital marketplace estimated to grow to $75 billion by 2025. Big players like Amazon want to capitalize, but how can the continent unlock its e-commerce potential? Africans are gradually embracing the convenience of . However, this trend is still in its early stages in Africa, compared with more established markets such as , and the .
Projections by the McKinsey Global Institute suggest that, by 2025, e-commerce could account for 10% of all retail sales in Africa's largest economies: , and . According to experts, though the e-commerce sector holds significant potential in Africa, it faces challenges related to cultural and logistical factors. These considerations are crucial when customizing products and services to align with local preferences.
Who are Africa's key e-commerce players? Africa's largest online marketplace is Jumia, an e-commerce company that attracts 23 million monthly visits. It is followed by the online shopping platform Takealot.com, which has 10 million monthly visits, 96% of which are from South Africa, the country in which its based.
Souq.com, a Middle Eastern business that acquired in 2017, has around 10 million monthly visits, most of which are from Egypt. Meanwhile, in South Africa, the fashion and lifestyle retailer SHEIN is the most popular shopping app.
Jumia's East Africa regional CEO, Vinod Goel, told DW that Africa's online market is still in its infancy. "We can also see what has happened in t.