A billion Africans and 50 million bank accounts. In South Africa, credit cards are used by only 16.5% of the population (2008). No African country comes close to 1% of total retail spend spent online – the magic figure which constitutes the tipping point for digital retail growth (in SA, ecommerce has a 0.4% share of the retail market, while in countries such as Egypt and Nigeria, the figure stands at 0.01%). No wonder, then, that the ecommerce market in Africa hasn’t bloomed.
Looking at these numbers, many international ecommerce plays have shifted investment in the African market 5-10 years down the line. But where others fear to tread Oliver Rippel, CEO ecommerce Africa & Middle East at MIH, sees opportunity and first-mover advantage.