According to Visa, the volume of eCommerce activities in sub-Saharan Africa (SSA) is on an impressive path of growth with the sector projected to be worth over $7 trillion by 2024 as Nigeria, Kenya and South Africa show strong growth
In a report on eCommerce developments across Sub-Saharan Africa, Visa says the growth of eCommerce has been largely driven by the demand for professional services like accounting services, the prevalence of discount stores, business to business services, education, and government services in SSA.
The Covid-19 pandemic has also made many businesses pivot from offline modes of payment to online payment systems.
Smartphones have played a big part in pushing eCommerce in the region with broadband penetration standing at 42pc in 2020 and the bulk of transactions having been carried out on mobile devices.
The number is higher in South Africa and Kenya where 62pc and 43pc of the population have access to the internet respectively.
The number of people with smartphones has also been on the rise. 83pc of Nigerians have internet connection while Kenya and South Africa have 98pc and 176pc respectively.
These numbers show that it is imperative for eCommerce service providers as well as payment service providers to have mobile in mind.
Visa predicts growth for the sector in the coming years with SSA as one of the key regions in the lead of the growth. It had a 42pc year-on-year growth from 2019 to 2020.