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 isexpected to grow to 42% by 2060”. This is more than a billion people.
Consumption on the continent had risento 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.