A new report launched by the Economic Commission for Africa (ECA) has revealed that digital commerce in the continent could hit US$500 billion by 2030.
This is buttressed by the fact that 50 per cent of Africa’s citizens are under the age of 35 and with 500 million mobile money accounts.
The report,which was launched weekend at a side event at the ECA annual Conference of African Ministers of Finance, Planning and Economic Development, in Ethiopia,said that COVID-19 pandemic has opened up new opportunities for the continent’s digital economy.
The report explained that the growth of the sector was made possible by improved Internet penetration rates, reduced Internet costs, and growth of mobile telephony.
Guy Futi, one of the authors of the report said that by 2019, Africa had registered unprecedented growth in digitalisation with some 290 million people connected to the Internet, an investment of US$1.4 billion in venture capital.
He added that over 30 per cent of adults in Nigeria, South Africa, Egypt, and Kenya reported owning mobile phones.
The authors said the growth of mobile technology, among the other factors, built a fertile foundation that could be buttressed by developments in venture capital and funding, online payments, and logistics.
“We arrived at the conclusion that the digital economy can be a powerful catalyst for Africa’s economy with the potential to alleviate many of the economic burdens of COVID-19.
“But more importantly, e-commerce and digital trade can serve as a powerful engine for the economic recovery now required,” the authors of the report said.
Jamie McLeod, one of the authors, said the report was based on interviews with tech companies in Africa.
Some of the highlights of the report covered the range from the growth of venture capital funding in Africa to advances made in mobile and Internet penetration.
This part of the report demonstrated a rapidly changing digital environment that still has much to accomplish.
The report said that cheaper mobile handsets had played a significant role in the region’s Internet penetration.
“Transsion and Samsung, who control the bulk of the market share on smartphones sold in Africa, have produced handhelds specifically targeted for the limited spending power of Africans.More than 83 per cent of smartphones sold in Africa during the last quarter of 2019 had a price tag of US$200 or less,” the report added
It also noted that the largest mobile operators on the continent had continued to experience sustained revenue growth.
