In recent years, the digital landscape in Africa has been undergoing a significant transformation, with online marketplaces emerging as key players in the continent's economic growth. Despite common misconceptions, Africa is not a monolithic, impoverished continent. It is a dynamic region with a young population, rapidly growing cities, and increasing disposable income. This makes it fertile ground for the expansion of e-commerce. Online retail revenue in Africa is estimated at around $20 billion annually, accounting for only 3.5% of total retail sales. However, with a population of 1.35 billion, Africa possesses the potential for rapid expansion in both its overall economy and e-commerce sectors.
This article explores the leading online marketplaces in Africa, their unique offerings, and the factors driving their growth.
Key Players in the African E-commerce Market
Several online marketplaces are making significant strides in Africa, each with its unique focus and approach. Here are some of the major players:
Jumia
Why Jumia Is Beating Amazon And Alibaba In Africa
Jumia operates in 14 African countries, accounting for 74% of African consumer spending. At the end of 2018, it had 4 million active shoppers and 81,000 active sellers. Jumia offers over 29 million products and services, ranging from electronics to fashion, groceries, travel experiences, and TV subscriptions. Jumia is managing barriers to ecommerce penetration like poor internet connections and low literacy rates through innovative programs such as J-Force. J-Force is a network of commissioned sales agents who can place orders on behalf of digitally disconnected or illiterate consumers. It is perhaps unsurprising that Jumia has been ranked among the smartest companies in the world by Massachusetts Institute of Technology.
Read also: Experience Fad's Fine African Cuisine
| Marketplace | Monthly Visits | Focus |
|---|---|---|
| Jumia | 23 million | Pan-African, diversified |
| Souq (Egypt) | 10 million | Egypt, diversified |
| Konga | 2.3 million | Nigeria, diversified |
| Bidorbuy | 1.9 million | South Africa, diversified |
| Kilimall | 270,000 | Kenya, diversified |
Souq
Souq also has around 10 million monthly visits, most of which are from Egypt. Souq, originally a Middle Eastern business, was acquired by Amazon in 2017. Souq was originally founded in 2005 by Syrian entrepreneur Ronaldo Mouchawar, as an eBay-style auction site. It transitioned to an Amazon-style ecommerce model from 2010 and became the largest ecommerce platform in the Arab world, serving the UAE, Saudi Arabia and Egypt. Souq sells a wide range of items including electronics, appliances, homewares, groceries, fashion, books, toys and fitness products.
Souq has been rebranded as Amazon in the UAE and Saudi Arabia but continues to use the Souq name in Egypt, where it has almost ten million visits per month. Souq is a retailer in its own right as well as a marketplace. All orders are shipped by Souq, not the seller, so businesses need to provide a warehouse or store address in Egypt where the courier can collect orders. Souq also offers a fulfillment service, called “Fulfilled by Souq”, which is very similar to Amazon FBA. Products that are fulfilled by Souq have a higher ranking in search, higher priority for the Buy Button, and qualify for customer pickup and international shipping.
Takealot.com
Takealot.com is South Africa’s largest online retailer, launched in 2011 following the acquisition and rebranding of an existing ecommerce business. Today, Takealot.com is an online marketplace and a retailer in its own right, selling items across all product categories to consumers in South Africa. It has ten million visits per month from 1.8 million shoppers. Takealot.com has its own distribution centers and parcel collection points across the country.
Other Marketplaces
Of the other African marketplaces, Konga is focused on Nigeria, bidorbuy is a South African site, noon is Middle Eastern with 11% of its traffic from Egypt, Zando is South African, and Kilimall operates mainly in Kenya. Konga operates mainly in Nigeria, with 2.3 million visits per month from the country. It launched in 2012 and offers products including computers, phones, fashion, homewares, toys and more. Bidorbuy is South Africa’s number two ecommerce site, with 1.9 million visits per month. It began in 1999, following eBay’s online auction model, but fixed-price listings are now the most popular format. Kilimall, named after Mount Kilimanjaro, was founded in Kenya in 2014 and has 270,000 monthly visitors from the country, representing 81% of its total traffic. Interestingly, 14% of Kilimall’s visitors are from China.
Specialized Marketplaces
In addition to the larger, more general marketplaces, several platforms cater to niche markets, offering unique products and services.
Read also: The Story Behind Cachapas
ADJOAA
ANKA Shipping allows you to quickly and safely create DHL slips integrated with customs management, from all African countries. An ANKA account gives you access to our 3 services: Marketplace, Pay and Shipping. ANKA Pay allows you to sell any goods and services from Africa to the world: products, trainings, bookings, digital art, subscriptions, etc. ANKA Marketplace is meant for physical products that are ‘Made of Africa’: fashion, jewelry, fabrics, beauty products, etc.
This month we are celebrating the over 50 brands on ADJOAA that are founded and led by African women. These women are resilient, innovative and industry leaders and inspiring. They lead teams of artisans, designers and staff to create one of a kind pieces rich in heritage and put African fashion on the map on a daily basis. Shop our leading ladies on ADJOAA.COM. Explore outfits for every occasion! From weddings to the beach and to brunch with friends. These handmade products are all Made in Africa with sustainability in mind. Discover ADJOAA brands by location. Shop with ease if you are located in any of our hubs and receive your products not only faster but also with FREE shipping!
Many customers have expressed their satisfaction with ADJOAA:
- "The dress is perfectly tailored. I love it."
- "Beautiful outfit I had a lot of comments from people regarding my outfit. Thank you ADJOAA.COM!"
- "I adore this piece. It is well crafted, true to size and even more beautiful in reality than it is on the site. The quality for price is exceptional. The process to order was effortless and team ADJOAA have great customer service."
African Unique
African Unique International Marketplace has extensive natural beauty for both skin and hair care. Our beauty products library includes skin care natural products for face, skin, and body body care as well as assorted natural hair care products from all major brands, in addition to specialized cosmetics products catering for Africa's uniqueness ranging from texture to appearance, and from hair type to skin type. At African Unique marketplace, we offer natural skin care products that are designed with focus on natural approach to beauty, and our marketplace is implemented by factoring beauty into the overall wellness. African Unique offers extensive catalogs of natural hair care products as well as all other healthy hair products.
African Unique has extensive collections of African prints fabrics for authentic African fashion. Our unique African george collections include assorted print dresses, dashiki, and unisex clothes made with silk george and plain george fabric for any occasion. We also have assorted gorgeous African lace clothes and African prints clothes for both men, women, and children that are available at unique affordable prices. Be sure to check out our handbag catalog for assorted designer handbags, Italian handbag, premier handbag, beaded handbags, Ankara handbags, African kente and Maasai handbags.
Read also: Techniques of African Jewellery
African Unique marketplace is the place for African fashion with our extensive collections of African fabrics that are available in assorted designs.Thank you for shopping at African Unique, the all-Africa international marketplace. African Unique is Africa's consolidated eCommerce center for meeting the global African consumer needs. Our Africa-centric products and services appeals to all Africa related consumers including those within Africa and those in Africa's diasporas. African Unique marketplace is available to Africa related merchants within and outside of Africa's borders that are seeking to service Africa related consumers anywhere in the world.
ER African Online Market
ER African Online Market provides a convenient solution for people who want to purchase traditional African groceries and more without having to leave their homes. With a diverse selection of authentic African ingredients and spices, ER African Online Market offers customers a chance to explore African cuisine from the comfort of their own kitchen and adds exotic flavors and spices to their meals. We offer a variety of snacks, refreshing drinks, and household essentials such as cleaners and toiletries.
By creating a space for traditional African goods online, ER African Online Market makes it easy for everyone to enjoy the authentic tastes of Africa in their own home. Our services are primed for quick and efficient delivery of ALL your orders at minimal rates. We understand how busy life can get.
The Role of Mobile Technology
Mobile phones are the primary devices used to access the internet in Africa, particularly in rural areas. Around 250 million Africans have a smartphone and data charges can be expensive, so many prefer to shop via mobile apps. Significantly, Africa is a mobile-first market as many Africans' first internet access came through their smartphone. The way many consumers browse, shop and pay is inherently mobile, which is priming the continent for an ecommerce growth spurt.
Overcoming Barriers to E-commerce Growth
Logistics are a common barrier to entry. There are relatively low levels of urbanization, poor postal systems and transport links, and many cities have no formal address system. Additionally, many consumers don't have bank accounts in North Africa, and mobile payments are still in their infancy. Jumia has its own payment system JumiaPay, and also offers a cash on delivery payment option.
The Future of E-commerce in Africa
Ecommerce penetration is currently low in Africa in comparison with global penetration. However while the global growth rate of ecommerce is 17%, Africa’s ecommerce is growing at 26%. Finally, with a population of 1.2 billion and a middle class on the rise, perhaps Africa's real potential lies in the size of its population. There are inevitably immense market share opportunities for early entrants to dominate an untapped market which is only expanding.
