Africa’s E-Commerce Boom: A Digital revolution driving economic growth and intra-Continental trade

The e-commerce landscape in Africa is undergoing a remarkable transformation, driven by a youthful, increasingly connected population and economic integration initiatives. In 2017, only 13% of Africans engaged in online shopping, but this figure is expected to soar to 40% by the end of 2025, according to a July 2024 report by Nikulipe on payments and e-commerce in Africa.

This surge positions e-commerce as a key player in boosting intra-African trade.

The report, titled “Payments and E-commerce in Africa 2024,” forecasts an additional $15 billion in online market growth by 2028, representing a 49% expansion over four years.

Supporting this outlook, Statista anticipates an average annual growth rate of 11.7% from 2024 to 2028, potentially doubling e-commerce revenues, which stood at $16.1 billion in 2023.

Africa’s booming e-commerce sector is fueled by a favorable demographic— the median age on the continent is 19.7 years— and its 1.4 billion inhabitants are becoming more digitally connected.

The internet penetration rate, which was just 16% in 2013, more than doubled to 37% in 2023, according to the International Telecommunication Union (ITU). However, this digital revolution faces significant challenges.

The World Trade Organization (WTO) highlights inadequate infrastructure and the lack of harmonized e-commerce regulations across African nations, complicating cross-border trade.

The African Continental Free Trade Area (AfCFTA) and its digital trade protocol aim to address these hurdles by streamlining online commerce between African countries.

Regional initiatives like the COMESA Digital Free Trade Area also support this effort.

Platforms such as Jumia, operating in 11 countries, and Anka Africa, hosting over 20,000 online shops in 46 nations, are paving the way for smoother e-commerce, simplifying cross-border transactions, and showcasing local producers.

Africa’s e-commerce sector is poised to play a pivotal role in the continent’s economic future, strengthening trade links and driving growth through an unprecedented digital revolution.