Watching Netflix, ordering a Bolt taxi and food delivery from Uber Eats, playing Candy Crush on the mobile phone, or ordering clothing and electronics on Amazon/Temu — these everyday online shopping behaviours in many African countries are now remarkably similar to what we know in Europe or the US.
The world’s youngest and fastest-growing continent is undergoing a profound transformation with rapid digitalisation and economic growth. By 2025, nearly half of Africa's population is expected to engage in online commerce, a staggering increase from just 13% in 2017 – a testament to the continent's rapid digital transformation.
In 2007, M-PESA revolutionised financial services in Africa, starting in Kenya, and has since spread across the continent. Launched by Safaricom, Kenya's largest mobile network operator, M-PESA (‘m’ for mobile and ‘pesa’ meaning money in Swahili) offered a simple, yet groundbreaking solution: a basic money transfer service for the unbanked population to send money via mobile phones to their families in rural areas.
What began as a basic service has evolved into a one-stop app for all financial needs. Today, M-PESA has grown into a super app, with mobile banking, payments, loans, and insurance being part of the M-PESA ecosystem.
More than 84% of Kenyan adults use mobile money services today, and the trend is mirrored across several African countries where M-PESA operates. This mobile money provider continues to grow its customer base even today, almost doubling it between 2017-2023. This payment revolution has enabled financial inclusion for millions and set a new standard of payments across the continent.
The success of M-PESA in Kenya was so profound that it soon spread across Africa, with other mobile money players entering the market. Airtel Money, Orange Money, and MTN Mobile Money, among others, are now also rapidly expanding and revolutionising how Africans pay today. Mobile money processing volumes in Africa are estimated to double, from approximately USD 850 billion today to more than USD 1.8 trillion by 2028.
The rapid adoption of mobile payments in Africa was further accelerated by other developments happening continent-wide, including the widespread adoption of internet networks and the increasing affordability of smartphones. The number of African Internet users is expected to grow from 570 million at the end of 2022, to almost 900 million in 2028. The World Bank and African Development Bank report that there are currently 650 million mobile users in Africa today, surpassing the number in the US or Europe.
With 70% of the Sub-Saharan African population under 30, this youthful demographic has quickly embraced technological advancements, fueling economic growth across previously inaccessible sectors. According to the World Bank, nearly 57% of adults in Sub-Saharan Africa now have access to financial services, a sharp increase from only 23% in 2011. The adoption of mobile payments resulted in economic growth across many online industries once deemed inaccessible to the largely unbanked population, who can now manage their finances through mobile devices without needing a bank account or card.
Africa became one of the fastest-growing regions for many digital goods and service industries, such as online retail, mobile and video gaming, online travel, music streaming, e-books, software, and VPN, to name a few. Numerous local and international merchants are capitalising on this massive transformation that enabled businesses to offer their goods and services through online shopping to hundreds of millions of Africans.
Mobile money truly disrupted how Africans pay today and enabled this vast consumer market to shift to online shopping for goods and services. The trend of rapid digitalisation is set to continue, fueled by the ongoing expansion of internet networks, the increasing affordability of smartphones, and the young and rapidly growing population that are both tech-savvy and keen to adopt new changes. If you want to learn more and better understand this fascinating continent, here is a detailed resource that dives deeper into Africa’s transformation through different lenses: macro, regional, country, and industry. You can download the guide here: ‘Payments and E-commerce in Africa 2024’.
Frank Breuss, CEO and Co-founder of Nikulipe, is an entrepreneur and business leader with 20+ years of solid experience in the global payments industry. His expertise in local payment methods for fast-growing and emerging markets drives him to innovate existing business solutions and set new benchmarks towards fast, secure, and transparent cross-border payments. Frank has contributed to the growth of several successful teams and businesses, including PPRO, Banking Circle, and Amazon.
Nikulipe (Swahili for ‘I pay you’) is a fintech company that helps payment service providers and global merchants access fast-growing and emerging markets via local payment methods. Established in 2019, Nikulipe was founded by serial entrepreneurs and unicorn founders, who have vast experience in the fintech industry, with direct expertise in payment industry technology and business development. Learn more about Nikulipe by visiting nikulipe.com.
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