Poverty is often associated with Africa and this is with
good reason, but it is safe to say Africa’s middle class is rising and so is
their spending power. According to data from the Africa
Development Bank, “About one third of the continent spends around $4 to
$20 a day and this group is expected to grow to 42% by 2060”. This is more than
a billion people.
Consumption on the continent had risen to more than $1 trillion in
2012, from $364 million in 2000, an annual rate of growth of 10.7% and this
figure is still on the rise.
With deepening internet penetration and mobile becoming
the primary tool through which people engage with the world, the trend suggests
that it’s inevitable that African consumers will migrate to e-commerce.
The global growth rate of e-commerce is
16.8%; Africa’s e-commerce space is growing at a rate of 25.8%. Meanwhile, in
some of Africa’s biggest markets, a
majority of internet users already shop online or expect to do so in the
future.
Consumption on the continent had risen to more than $1 trillion in
2012, from $364 million in 2000, an annual rate of growth of 10.7% and this
figure is still on the rise.
With growing internet penetration,
we can see that some of this spending is starting to happen online. “With 50%
of the continent expected to have access to the internet by 2025, online
shopping could account for 10% of retail sales, or $75 billion” according to
a McKinsey report. Google points out that online search on
the continent are rising and all this is inspiring the emergence of e-commerce
platforms trying to cash in on Africa’s new-found wealth.
A lot of what the African e-commerce platforms provide
is connecting global brands with the continent’s emerging consumers. Kaymu, an online market place, has become the
leader of this new class of e-commerce businesses on the continent. Founded in
January 2013, the company is operational in 17 African markets. “We need to
realize that the pace at which African middle class’ purchasing power is
growing is unbelievable and the demand for ease when purchasing products i.e.
online as opposed to physical market places is growing even faster”, told us
Erfaan Mojgani who is Kaymu Tanzania’s country manager.
With deepening internet penetration and mobile becoming
the primary tool through which people engage with the world, the trend suggests
that it’s inevitable that African consumers will migrate to e-commerce.
The global growth rate of e-commerce is
16.8%; Africa’s e-commerce space is growing at a rate of 25.8%. Meanwhile, in
some of Africa’s biggest markets, a
majority of internet users already shop online or expect to do so in the
future.
About Kaymu
Kaymu
is the leading online shopping community, and the safest platform on the
market. It connects and empowers buyers and sellers to allow them to take
advantage of the best deals on an extensive range of products including
electronics, mobile phones, fashion items and tons of gadgets. Thanks to a
fixed price system, Kaymu guarantees that users will always find the lowest prices
on the market.
About
AIG
Africa
Internet Group introduces and accelerates the online shift in Africa – for its
people and its culture. It is committed to running successful and vibrant
internet companies which boost the evolution of African online culture. AIG is
the parent group of nine successful and fast-growing companies in more than 25
African countries, accounting for over 3, 000 staff. AIG cares about
entrepreneurship and brings together all the key elements required to build
great companies: team, concept, technology and capital. Its network of
companies includes JUMIA, Kaymu, Hellofood, Lamudi, Carmudi, Zando, Jovago,
Lendico and Easy Taxi.
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