Africa’s E-commerce Revolution: Growth, Drivers, and Opportunities

The 2020s could not have started off worse than with a pandemic. We experienced lockdowns and social distancing, and things like blowing out a birthday became frowned upon. 

But that will not be how this decade is remembered. We’ll look back at this time period where businesses embraced e-commerce like never before. 

Saying the industry has flourished over the past 10 years would be an understatement. We know that’s a big statement, but let’s explore why that is the case.

Understanding Africa’s E-commerce Growth

The world has grown accustomed to using online stores as their primary way of buying goods and services. Africans now rely on e-commerce for daily purchases because, these days, they shop online for everything from groceries to electronics. At the end of the day, nothing beats the convenience of browsing and purchasing products on a cosy couch with the flick of a finger.

The African e-commerce market is set to hit $39.44 billion by 2025. Why? A few reasons:

• More people have internet access – Smartphone use is rising, and data costs are dropping.
• Mobile payments are booming – In 2023 alone, Africa had 856 million mobile money accounts, a 52% jump from 2020.
• Online shopping is becoming the norm – From groceries to gadgets, more people prefer the ease of buying online.

Countries like Nigeria, Kenya, Egypt, and South Africa are leading the way. But e-commerce isn’t just about selling—it’s about trust. A .Africa domain tells customers you’re serious about business and part of Africa’s growing digital economy.

How Governments & Organisations Are Boosting Trade Across Borders

African governments and trade organisations are making it easier for businesses to sell across borders. Here’s how:

The African Continental Free Trade Area (AfCFTA) 

The African Union (AU) is actively promoting trade within Africa through its flagship program, the African Continental Free Trade Area (AfCTA). This initiative aims to eliminate trade barriers, boost intra-African trade, and create a single market across the continent. 

The Southern African Development Community (SADC)

SADC is committed to removing barriers to trade, such as import/export quotas and administrative oversights. 

As part of its programme of Regional Integration, SADC has made considerable progress in removing barriers to trade, encouraging growth in the Region. 

SADC has also signed a Protocol on Trade in Services to provide for the liberalisation of trade in services. 

• Improving internet access and digital trade.
• Supporting better delivery and logistics networks.
• Encouraging regional businesses to go online.

East African Communities (EAC) 

The East African Community (EAC) wants to facilitate business between countries in the region. It is working on better trade rules, shared product standards, and investment benefits so that the region can act as one big market.

EAC countries focus on growing trade within the region by improving government systems and helping businesses export goods.

Since March 2004, the Customs Union Protocol has aimed to remove trade barriers, boost local production, attract investors, and support economic growth across East Africa.

Smart Africa Alliance

The Smart Africa Alliance is a partnership of over 30 African countries working together to improve digital trade across the continent. 

Their focus is on expanding internet access, making digital payments safer, and creating a single digital market that allows businesses to sell across borders with ease. 

This aligns perfectly with the use of a .Africa domain, which helps businesses build trusted, Africa-wide online stores that are part of the continent’s digital future.

Why Investors Are Paying Attention

E-commerce in Africa is drawing more investment than ever before. One major reason is the rapidly growing number of online shoppers. By 2025, Africa is expected to have over half a billion e-commerce users, with online shopping growing at a steady rate of 17% per year. 

Another factor is the rise of mobile money. From 2020 to 2023, mobile money accounts jumped from 562 million to 856 million—a 52% increase. These changes are creating a ripple effect. As more people shop and pay online, new industries and job opportunities are emerging across the continent.

How E-commerce Continues to Positively Transform Africa

The rise of e-commerce in Africa is bringing about significant positive changes across the continent. Here are some key positive impacts:

1. Increased Access and Convenience for Consumers

• Borderless Trade: E-commerce opens doors for African consumers to purchase goods from regional sellers.
• Convenience of Online Shopping: Consumers can shop from the comfort of their homes at any time, saving time and transportation costs.
• Access to Global Marketplaces: E-commerce allows African consumers to purchase goods from international sellers, expanding their options beyond local markets.

2. Economic Growth and Opportunities for Businesses

• Market Reach: E-commerce allows businesses, especially SMEs, to reach customers beyond their immediate geographic location, tapping into national and even international markets.
• New Business Models: Innovative approaches like dropshipping lower the barrier to entry, empowering entrepreneurs with limited capital.
• Job Creation: The growth of the e-commerce ecosystem creates jobs in sectors like logistics, warehousing, marketing, and technology.

3. Financial Inclusion and Empowerment

• Digital Payment Adoption: The rise of e-commerce drives the adoption of digital payment methods such as mobile money, e-wallets, and card payments, fostering financial inclusion for the unbanked population.
• Empowering Small Businesses and Entrepreneurs: E-commerce provides a platform for small-scale producers and entrepreneurs—particularly women and youth—to access markets and generate income.

Why a .Africa Domain Matters for Your Business

Having a .Africa domain shows your customers you’re part of Africa’s thriving e-commerce industry.

• Builds Trust – Customers feel safer buying from businesses with a credible online presence.
• Supports Cross-Border Sales – Perfect for businesses using AfCFTA and SADC trade benefits.
• Helps Brands Stand Out – A .Africa domain tells people your business is rooted in Africa.

Take Your Business Online with Registry Africa

The future of e-commerce in Africa is bright, and businesses that embrace this e-commerce transformation will thrive. Securing a trusted domain name is the first step in starting an online store.

Register your domain today with Registry Africa and establish your business in the digital marketplace!