Africa eCommerce Spotlight
Identifying Business Opportunities in Africa
Of the many international business development events the US Commercial Service offers, such as the GDEI Trade Mission to Africa, all are focused on building commercial bridges between U.S. owned or led businesses and overseas business communities. While a Trade Mission will uncover targeted sales opportunities, companies that do some basic market research in advance of their trip can hit the ground running, having acquired a better understanding of the individual markets of the target region.
First, let’s take a step back and look at the rise of ecommerce in Africa as a whole. Almost half the population on the African continent is online, but the penetration rate remains below the global average despite significant differences across regions and countries. Furthermore, most African online shoppers research online before making a purchase, and value customer reviews, while interest in same-day delivery of products is low.
Understanding Consumers Across Africa
While fashion/apparel and consumer electronics generate the highest revenues as online segments, food and personal care segment sales are growing the most across Africa.
Cash is still the most common payment method across many countries in Africa. Even when purchasing online, many customers across Africa prefer using cash on delivery payments via local services rather than using credit/debit cards. Visit the eCommerce Business Service Provider Directory and find an Online Payment Service Provider to assist you with transactions across Africa.
South Africa eCommerce Spotlight
South Africa charges product import duties as high as 41% on clothing, 17% on textiles, and 13% on footwear, despite healthy consumer purchases of those products online from within South Africa. Credit cards and mobile wallets account for over 63% of all online payment methods, with cash on delivery favored by less than 10% of South African online consumers. To learn more about best prospects in South Africa, reach out to your local Trade Specialist today.
Ghana eCommerce Spotlight
Ghana charges product import duties as high as 20% for clothing, 18% on coffee and tea, and 17% on fruits and vegetable products. Most consumer purchases occur from neighboring or regional ecommerce platforms, with cash on delivery via local services being the most preferred payment method for consumers. To learn more about best prospects in Ghana, reach out to your local Trade Specialist today.
Nigeria eCommerce Spotlight
Like its oceanside neighbor Ghana, Nigeria charges product import duties as high as 20% for clothing, 18% on coffee and tea, and 17% on fruits and vegetable products. Consumers use local online shopping marketplaces, preferring to use credit/debit cards (35%) for payment over cash on delivery (23%) via local services. To learn more about best prospects in Nigeria, reach out to your local Trade Specialist today.
Kenya eCommerce Spotlight
Kenya charges product import duties as high as 32% on clothing, 40% on sugar confections, and 51% on dairy products. Kenyan consumers prefer to use a mobile wallet (58%) or online banking apps (20%) to make their online transaction payments. To learn more about best prospects in Kenya, reach out to your local Trade Specialist today.
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