Africa emerges as a prime frontier for the burgeoning online consumer class, welcoming an estimated 10 million new consumers in 2024, second only to Asia, reports EBANX’s annual Beyond Borders digital payments and commerce study. EBANX, a global fintech company bridging local payment methods from Africa, Latin America, and India to global digital commerce, reveals the continent’s digital potential.
With rising markets in Africa, Asia, and Latin America driving future consumption, they represent 70% of the 109 million people globally entering the consumer class this year, according to World Data Lab. This demographic shift heralds significant implications for digital commerce growth, payments, and the ascendancy of B2B transactions.
While Africa’s digital markets are still nascent, they’re expanding rapidly. Unlike the 13% annual growth in developed countries, Africa experiences a brisk 25% expansion in online sales, reports Payments and Commerce Market Intelligence (PCMI). By 2026, the digital commerce market is forecasted to surge to $72 billion across top markets including Egypt, Kenya, Morocco, Nigeria, and South Africa, surpassing Europe in consumer spending growth over the next decade.
Digitization reshapes African markets, with internet access projected to become nearly universal in some regions by 2028, particularly in Egypt where penetration is set to double to 98%. Despite this progress, only 44% of African adults currently make online purchases, indicating substantial untapped potential.
Online retail dominates Africa’s digital commerce landscape, comprising 58% of digital volume in 2023 across key countries. Given limited access to traditional financial services, alternative payment methods (APMs) gain prominence, constituting 69% of Africa’s total digital commerce value compared to 31% for card payments. Mobile money, with nearly universal penetration in countries like Kenya, accounts for 5% of the top five economies, signaling a shift towards instant payments and financial inclusion.
Wiza Jalakasi, Director of Africa Market Development at EBANX, emphasizes the future of payments in emerging markets, which prioritize mobile-first, alternative payment methods. Across Latin America, Africa, and India, APMs drive digital commerce, reshaping the payment landscape and fostering financial inclusion.
Source: BenjaminDada