About IORMA Africa
IORMA Africa is the first in a series of IORMA Regional Offices which are being created around the World
There are currently (as at 2015) 58 Counties and dependent territories which form Africa:
Sub-Saharan Region, including Southern Africa – Regional Overview
The Sub-Saharan region covers an area of approximately 22 million km2 (just between Europe – including Russia and Turkey – and North and Latin America) with a population of over 800 million people. The median age in Africa is around 20 compared to 30 in Asia, 35 in China, 37 in the USA and 40 in Europe. The population growth in the region remains rapid and according to UN projections Africa’s population will exceed 1.5 billion by 2020 and two billion by 2045. The continent’s consumer market will become ever more relevant and impossible to ignore.
One of the fastest-growing regions in the world in terms of Internet connectivity and usage, Africa’s mobile telephone population has grown exponentially, officially overtaking fixed-line phones.
The continent’s 650 million mobile phone subscribers even outnumber those in the U.S. and Europe.
Nigeria is the biggest country with a population of 167 million, followed by South Africa (53 million) and Kenya (44 million). Nigeria also has the highest number of Internet users (48.4 million – 29%), followed by Kenya (16 million – 37%) and South Africa (13.2 million – 25%).
Central and Southern Africa present a significant opportunity for online and omni retailers. For many years a lack of infrastructure has held back online shopping in the region. These days, the use of mobile devices to shop online is unlocking some of the potential, and big players are starting to take notice.
B2C online retail sales in Central and Southern Africa will reach an estimated US$1.7bn this year, but experts foresee an annual growth of around 40 per cent for the next ten years. We estimate that total e-sales will reach over US$3,4bn in 2014. South Africa currently leads in online shopping, but other countries such as Nigeria and Kenya have higher mobile shopper penetration and may overtake South Africa in the not too far away future.
On average more than 10 per cent of active Internet users in Africa shopped on mobile this year, illustrating the increasing importance of mobile connectivity on the continent. In areas where computers are hard to come by, consumers increasingly use mobile devices to connect to the Internet.
West Hills Mall – Accra, Ghana (Largest shopping mall in West Africa)
The e-commerce market in Africa holds great riches for whichever companies make the bold decision to move into the likes of South Africa, Nigeria, Kenya and others. Mobile Internet penetration grows every year, and with it the opportunities in e-commerce. Investors may not see immediate payoffs from the continent, but in time are sure to reap rewards.
Africa moves towards Omni Retailing
If there was a map of super markets in sub-Sahara Africa the vast majority of the area would show no large retailer present. The retail trade in these areas remains firmly in the hands of what are called in South Africa “spazas” or ‘tuck shops” – family owned, small & with a limited stock, and sometimes with a van or small bus which moves around from village to village. But a slow revolution is taking place – super market chains, retail banks and e-commerce driven by mobile phones are establishing, starting in the main cities & moving out to the smaller cities or towns … More
Africa … from the IORMA Knowledge Hub
More from IORMA Africa
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