Online trade has been growing significantly in Africa in recent years. The continent boasts of over 600 online marketplaces, which recorded 2.17 billion visits in 2019. However, according
The International Trade Centre (ITC), only ten countries such as Egypt, Algeria, South Africa, and Nigeria are responsible for 94% of Africa’s total online business.

For most developed countries, e-marketplaces are typically the dominant form of e-commerce for consumer goods. These are prominent in Africa as well, serving a new generation of consumers and creating market opportunities for small and medium-sized enterprises (SMEs). However, not much is known about these marketplaces yet, especially regarding their struggles and growth potential.

A significant challenge in accessing Africa’s e-marketplaces is that they vary significantly from country to country. Most use a domestic, country-focused model, and the most active ones are present only in the biggest, most advanced economies. Although every African country has online marketplaces, only a few countries have an abundant amount. South Africa leads the continent with 105, followed by Morocco with 102, and Tunisia with 92.

Moreover, limited internet access, differences in business environments, and the relatively smaller sizes of African marketplaces according to global standards are adding to the difficulty in accessing the continent’s online marketplaces. For example, only 40% of Africans were online in 2019. Thus, for e-commerce to further grow in the continent, African countries must create modern, technologically advanced marketplaces by improving financial systems, internet access, and commercial infrastructure, which will naturally enhance the quality and widen the reach of e-commerce. They must also encourage innovation and competition while strategizing ways to attract more investments.

While there are several challenges confronting e-marketplaces in Africa, there is also a significant opportunity for growth. They can help boost African economies and generate new opportunities for small traders to grow their businesses, but this can be possible only if more Africans become stakeholders as e-commerce becomes a global norm.

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