Sell seamlessly in Africa’s biggest consumer markets with a Klasha Business Account
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 South Africa (63%), Morocco (62%) and Nigeria (56%) having the highest shares of mobile shopping in 2020, according to Statista. The Covid-19 pandemic also made more users rely on e-commerce to shop; however, e-commerce growth is not tied to 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 2021 and 2025 for some of Africa’s biggest consumer markets and why more businesses need to sell into Africa with a Klasha Business Account:
Nigeria: The 33rd largest market for e-commerce, Nigeria had revenue of $6.9 billion in 2021, placing it ahead of Denmark and Colombia. With an increase of 30%, the Nigerian e-commerce market contributed to the worldwide growth rate of 15% in 2021.
User penetration in 2022 is estimated at 41.9% and is expected to hit 52.5% by 2025. This growth will also increase the average revenue per user (ARPU) to $93.77 and the number of users to 122.5m by 2025.
South Africa: In SA, user penetration is estimated at 45.1% in 2022 and is expected to hit 53.1% by 2025. This inadvertently increases the average revenue per user (ARPU) to $308.30 and the number of users to 33.4m by 2025.
With a revenue of $5 billion in 2021, South Africa is the 41st largest market for e-commerce by contributing to the worldwide growth rate of 15% in 2021, placing it ahead of Iraq and behind the Philippines.
Kenya: With an increase of 44%, the Kenyan e-commerce market contributed to a worldwide growth rate of 15% in 2021, which placed Kenya as the 54th largest market for e-commerce in the world, with $1.7 billion in 2021, and ahead of Sri Lanka and behind Hungary.
User penetration in 2022 is estimated at 40.3% and is expected to hit 53.6% by 2025. This growth will also increase the average revenue per user (ARPU) to $159.40 and the number of users to 32.1m by 2025.
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 any 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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