Africa has a large population. According to the United Nations Population Fund, the population of Burundi, Malawi, Mali and other countries will increase to five times the current population from 2013 to 2100. So how many Internet users are there in Africa? A report by McKinsey Global Management Consulting shows that 16% of the continent’s 1 billion people are using the Internet, and Internet users will continue to grow in the next few years. For Africa’s growing middle class, e-commerce will open up a new shopping experience for them. By 2025, about 10% of the continent’s economy will be owned by e-commerce, which means that e-commerce will generate $75 billion in revenue each year.
Promoting Africa’s retail industry through e-commerce and meeting the infrastructure established by e-commerce platforms may be a concern for entrepreneurs. At present, African governments attach great importance to infrastructure construction, and countries such as South Africa, Nigeria, Egypt, Kenya, and Zambia have been able to meet the needs of the rapid development of cross-border e-commerce in transportation, communications and other infrastructure.
Today, many African countries have online platforms with good development momentum. Take Nigeria as an example. The country’s two online retailers, Jumia and Konga, sell everything from mobile phones to fashion to cosmetics. Jumia is currently the leading retailer in Nigeria, and this achievement after 2 years of entering the market shows that e-commerce plays an important role in the local market. Jumia and Zando belong to African Internet Holdings. Jumia has expanded its influence to Morocco and is exploring the Kenyan market. Zando launched its own private fashion brand in South Africa, and about 25% of the products sold are international brands. Zando and Jumia have a free return policy that allows consumers to try on clothes at home, while the number of clothes returned to the company is relatively small. Currently, there are fewer brand stores in Africa, and the African e-commerce market has a bright future, which will make up for the lack of stores in African countries.