22 Jan SOUTH AFRICA - Comparing eCommerce Stats with Nigeria: Revenues, Users, Verticals, Internet penetration, ARPU, Literacy, Online Payment Methods

Online Payment South Africa

This is the sixth in a series of articles that focuses on providing multinational eCommerce companies with comprehensive information on the South African eCommerce and Online Payments market. 

South African eCommerce was projected to exceed Nigeria’s eCommerce volumes in 2020 but Nigeria is still in the lead with almost $5bn as opposed to South Africa’s nearly R4bn.  When it comes to user penetration, South Africa leads with 55% as compared to Nigeria’s 44% and estimates are that they will both be in the 60%’s by 2020.  

South Africa is expected to grow from 2020-2024 at a 7% CAGR as compared to Nigeria's 16%, so i’m not sure how it is possible that South Africa could take the lead.  South Africa’s largest eCommerce market segment is Electronics and Media and Nigeria’s is Fashion. The eCommerce ARPU (Ave revenue per user) in South Africa is around $120 as compared to Nigeria’s $50

Graphs kind courtesy of Statista

In general, eCommerce in Sub-Saharan Africa is slow to grow as a result of poor logistics, costly and poor connectivity, low level of affluence, and a dominant and low earning rural population.  About 40% of Africans are below the poverty line and 80% of this 40% live in rural areas which have limited connectivity, education and infrastructure. Having said all of this, South Africa is very different to this and has much higher levels of income, education (95% literacy), connectivity and infrastructural development.

South Africa (alongside Botswana, Kenya and Ghana) is one of the most attractive markets for eCommerce in Sub-Saharan Africa.  When it comes to connectivity, South Africa is the third most internet connected country on the continent with an internet market penetration of 60+%.  South Africa is blessed with the highest disposable incomes and most efficient logistics in Sub-Saharan Africa which bodes well for eCommerce growth.

South Africa has an educated and tech savvy young population, 30% of whom are between the age of 20 and 40 and well positioned to participate in the digital economy.   More than half of the almost 60m population have access to the internet and South Africans enjoy cross border shopping online. Most of these online shoppers have a MasterCard or Visa debit or credit card.  

We hope you found this interesting . . please click here if you are looking for eCommerce and Online Payment in South Africa

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NB:  Please note that stats are rounded off for easy reading.

Our thanks for stats, insights and inspiration to  . . 

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