South Africa - Nikulipe

Insights
South Africa

South Africa

South Africa is known for its stunning landscapes and vibrant economy. With a population of over 64 million people, South Africa is the most industrialized nation on the African continent. English, along with ten other official languages, reflects the nation’s multicultural identity. Southernmost African country possesses huge E-commerce market size of 7.3 billion USD which is expected to grow fast by 28.6% (CAGR), reaching almost 20 billion by 2029. This makes South Africa an attractive market for international merchants.

Regions

Southern Africa

Country Facts

Capital Cape Town, Pretoria, Bloemfontein
Urban population 68%
Population 64.7 M
Median Age 28.7 Yr

GDP 380 Bn USD
Official Language English, (Zulu, Xhosa, Afrikaans, Sepedi, Swazi, Sesotho, Setswana, Xitsonga, Tshivenda, Ndebele)
Currency South African Rand

E-Commerce Facts

E-commerce market revenue 7.3 Bn USD
E-commerce growth 28.6%

Online shopping habits Online Banking Payments, Wallets and Mobile Money get increasingly popular in South Africa.

People with mobile phone (% age 15+)

95%
People with internet access (% age 15+)

87.4%
People with bank account (% age 15+)

84.1%
People with debit or credit card (% age 15+)

60.4%

Card payments
Online banking
Wallets
Other

Growth Opportunities

Businesses looking to grow their online sales into new areas have a lot of opportunities in South Africa. Here are a few examples among many others:

● While Cards are a popular way to pay online, Local Payment Methods like Bank Transfer LPMs and Wallets are gaining market share. Initiatives by the South African Reserve Bank (SARB) – like the start of the new real-time payment system “Rapid Payments Programme (RPP)” announced to be launched during 2023 – further modernize the nation’s payments infrastructure and will increase attractiveness of LPM.

● South Africa’s E-commerce sector is expected to expand by 28.6% the upcoming years, reaching 19.9 billion by 2029. User numbers are projected to increase by over 80% over the next four years. The rising popularity of online shopping highlights the potential for businesses to establish a strong presence in this market.

● South Africa has a well-developed digital infrastructure: more than 87% of the adult population have access to the Internet, estimated over 95% of the over 15 year olds are connected via mobile phones.

South Africa – with its middle-upper class income population and its already well-established e-commerce market (and still rapidly growing) – is one of the most attractive markets for international merchants.