Sell seamlessly in Africa’s biggest consumer markets with Klasha Business
With the steady rise of African online retail, courtesy of the increase of online shoppers and internet users, among other factors, the vast potential for a digital audience in Africa has earned the continent its place in the world’s e-commerce. The impressive growth of Africa’s e-commerce has been predicted to have an upward trajectory, especially as 70% of sub-Saharan Africa is under the age of 30, making Africa the continent with the largest and youngest population in the world, as stated in a UN report.
Mobile e-commerce dominates the online shopping space, with Morocco (59%), Kenya (55%), and Nigeria (49%) having the highest shares of mobile shopping in 2021, according to Statista. The Covid-19 pandemic also made more users rely on e-commerce to shop; however, e-commerce growth is separate from the pandemic as many people still prefer to shop online, and more brick-and-mortar businesses are establishing an online presence to keep up with these times. The following are estimates of projected growth between 2023 and 2027 for some of Africa’s biggest consumer markets and why more businesses need to sell into Africa with a Klasha Business Account:
The e-commerce market revenue in Nigeria is projected to reach $9.02 billion in 2023. The figure also is expected to show an annual growth rate (CAGR 2023-2027) of 11.74%, resulting in a projected market volume of $14.06 billion by 2027.
User penetration in 2023 is estimated at 45.6% and is expected to hit 58.7% by 2027. This growth will also increase the average revenue per user (ARPU) to $89.02 and the number of users to 143.9m by 2027, according to Statista.
In SA, revenue in the e-commerce market is projected to reach $9.19 billion in 2023. Revenue is expected to show an annual growth rate (CAGR 2023-2027) of 13.21%, resulting in a projected market volume of US$15.10bn by 2027.
User penetration is estimated at 48.5% in 2023 and is expected to hit 58.6% by 2027. This inadvertently increases the average revenue per user (ARPU) to $308.30 and the number of users to 37.6m by 2027.
Kenya’s revenue in the e-commerce market is projected to reach $3,744.00 million in 2023 and is expected to show an annual growth rate (CAGR 2023-2027) of 7.85%, resulting in a projected market volume of US$5,066.00 million by 2027.
User penetration in 2023 is estimated at 44.7% and is expected to hit 60.9% by 2027. This growth will also increase the average revenue per user (ARPU) to $145.60 and the number of users to 38.1m by 2027.
Whether you are an international or local merchant who wants to sell seamlessly in Africa and allow your customers to pay with African currencies and methods, Klasha’s solutions will enable you to sell into the biggest consumer markets in Africa:
KlashaCheckout: Our highly responsive and user-friendly payment gateway makes it easy for merchants to sell into Africa and accept payments seamlessly in African currencies. The KlashaCheckout easily integrates with WooCommerce, OpenCart, Squarespace, and other e-commerce platforms. Integrating is easy and stress-free, and you can start accepting payments in 5 minutes.
Payment Links: Klasha’s dedication to cross-border commerce solutions in Africa also means giving small businesses a payment method that accepts payment in African currencies without a website or code. Klasha Payment Links are customised links that you can easily create, share, and delete for your business without technical assistance. You can share these links on WhatsApp, Instagram, and other platforms.
KlashaWire: KlashaWire helps merchants in Africa wire funds to their business partners and suppliers in China, India, the USA, the UK, Turkey, and over 120 other countries using African currencies and methods, and they receive the equivalent payout in USD, CNY, EUR, GBP, INR, and other G7 currencies. All KlashaWire payments are seamless, convenient, and settled in 1-4 working days.
Selling seamlessly into Africa’s e-commerce market is vital as the growing number of African consumers are interested in frictionless e-commerce experiences, as seen in frontier markets. KlashaCheckout, Payment Links, and KlashaWire are currently available for merchants in Nigeria, South Africa, Kenya, Zambia, Tanzania, and Uganda while we work on expanding into other regions in the continent. All you have to do is create a Klasha Business Account to enjoy these features and get started.
If you have questions about selling in Africa with Klasha’s solutions, feel free to send us a message.
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