African ecommerce is expected to achieve $46.1 billion in annual revenues by 2025. StockApps.com, a top stock trading and news app, has revealed this.
Vyom Chhadhary, editor at StockApps.com says that Africa is now a profitable market for the ecommerce industry because of the availability of smartphones and internet technology in Africa.
“Africa is shaping up to be the next hotbed for internet-based businesses. As smartphones and the internet become more prevalent in African countries, the population has started to shift towards online shopping,” he says.
Statista also reports that the African online commerce industry will grow at a compound annual rate of 24.7% between 2017-2024. In 2017, the industry’s annual revenue was just $7.7 billion, and it is expected to increase to $42.3 billion in 2024. In seven years, the industry’s annual income will increase by nearly 500%.
Chaudhary says that the pandemic, which has affected the entire e-commerce sector in recent years, has also helped them.
“Thus, one can also expect the recent surge in growth to slow down in the coming years. In 2021, $28 billion was earned by the African ecommerce sector. The 2021 figure was 31% higher than the $21.4 billion it earned in 2020. As per the report, the annual growth rate is expected to decline to 9% by 2025 gradually.”
After a 19% increase, it is expected that the African ecommerce industry will generate $33.3 billion in revenue by 2022. Next year, the industry will see a 14.7% increase to $ 38.2 million. With $42.3 billion in revenues, 2024 will see an even lower annual growth rate of 11%. On the back of an annual increase of 9%, the annual revenue in 2025 will reach $46.1billion.
Users to surpass 500,000,000 by 2025
Chaudhary says that the African ecommerce market is growing mainly due to its expanding user base.
“In 2017, only 138.9 million people shopped online in Africa. This number is expected grow to 519.8million in 2024 at a compound annual rate of 17.9%. It is striking to observe that revenue growth is faster than the user base.
“Furthermore, the e-commerce penetration in the African population in 2024 is expected to be 40%. Therefore, there is significant room for further growth in the African e-commerce industry.”