Connect with us

Telecom

Why E-commerce is Thriving in South Africa

Published

on

Kindly share this post

South Africa’s ecommerce sector is expected to exceed USD21 billion by 2025, with more than one billion transactions per year. This is largely due to the proliferation of smart devices and the expansion of internet connectivity which has created a viable environment for e-commerce to thrive in the country.

Additionally, the increasing integration of e-commerce platforms with various advanced technologies such as cloud computing, artificial intelligence and predictive analytics is also significantly driving the growth of the South African e-commerce market. As a result, the country is becoming a significant player in the global e-commerce industry.

Indeed, the rise of e-commerce in South Africa holds immense opportunities for businesses looking to enter the market. Further, the development presents useful learning points for other countries, such as Nigeria and Kenya, among others, all of which this SeerBit whitepaper exhaustively explores.

Factors Driving E-commerce Growth in South Africa

E-commerce growth in South Africa has been driven by several factors, including increased internet access, improved payment options and the convenience and efficiency of online shopping.

  1. Increased internet access: Mobile penetration among South African consumers is higher than ever, as indicated by research results from a Geopoll survey conducted in 2020 showing that 45 percent of the South African population browsed the internet on their smartphones for more than four hours a day. The study also revealed that South Africa is one of the biggest adopters of mobile technology in sub-Saharan Africa, with higher rates of smartphone adoption than in most other countries in the region. In terms of total numbers, there are 46.9 million smartphone subscriptions in South Africa, which accounts for users who have multiple phones. As of January 2024, there were 45.34 million active internet users in South Africa.
  2. Convenience and efficiency of online shopping: For South African consumers, convenience is key when it comes to choosing which online platforms to purchase from. This reduced need to visit a physical store was also identified in a research paper published by Deloitte. The research found that 26 percent of consumers in South Africa said they prefer to shop online because it is more convenient.
  3. Improved payment options: The integration of wallets, bank apps and shopping apps has made browsing through virtual shopping aisles easier than ever before. Digital wallets have become an entry point for consumers to engage with financial services, thereby creating new opportunities to target the under-served banking population. Also, as South Africans become more comfortable with the concept of online shopping, their appetite for e-commerce solutions continues to increase.

Overcoming Challenges Faced by E-commerce Businesses in South Africa

Despite South Africa’s strong e-commerce growth, the  WEF has noted  that e commerce entrepreneurs are challenged by issues such as low consumer trust and e-skills, low internet penetration and affordability, uncompetitive delivery infrastructure, fragmented markets and barriers to cross-border e-payments.

  1. Low Trust of Online Platforms

Many South Africans still do not trust online stores with their personal payment details. This stems from lack of knowledge about online payment systems and advanced security measures. To overcome this mistrust, merchants should use a PCI DSS certified payment service provider (PSP) that meets high security standards and keeps customer information safe. If customers understand how online fraud is prevented and the techniques that are used to prevent security breaches or fraud attempts, they are more likely to trust an e-commerce website with their payment information

  1. High Cost of Data and Internet Penetration

South Africans pay up to USD5.29 per gigabyte (GB) of data, a cost equivalent to nearly four hours work for people earning the minimum wage. That compares with about USD1.53 per gigabyte in North Africa and USD2.47 in Western Europe, according to research by the Ichikowitz Family Foundation charity that highlights, among other topics, sub-Saharan Africa’s sky-high data costs.  The region has the world’s most expensive mobile data prices, according to the Worldwide Mobile Data Pricing 2021 report.

  1. Issues with delivery infrastructure

Logistics is already a vital part of any retailer’s business plan, but its importance will continue to grow as the use of e-commerce for transactions increases. For stores to be efficient, they must be able to respond quickly and accurately to be able to deliver the correct products to customers on time. Now more than ever an efficient supply chain is needed that gives a high level of service across all channels.

The Role of Technology in Shaping South Africa’s E-commerce Landscape

Technology has become an integral part of every aspect of life, and the retail industry in South Africa is no exception. As consumer expectations continue to evolve, retailers are embracing innovative technologies to enhance the shopping experience and stay ahead of the competition.

Emerging technologies including contactless payments, virtual and augmented reality experiences, AI and mobile payments are all having a profound impact on e-commerce in the country.

Conclusion

The growth of South Africa’s ecommerce industry will likely surpass projections, thanks to the country’s growing appetite for online shopping. The penetration of smartphones, access to data, increased number of platforms and products as well as evolving regulation supporting the industry are significant factors contributing positively to the growth of the industry.  There has never been a better time for businesses to enter the ecommerce market in South Africa.

This SeerBit whitepaper casts a deeper look at the trends, factors, future prospects and leading players transforming South Africa into the continent’s biggest e-commerce market.

Click HERE to access the full whitepaper.

 


Kindly share this post

Ugo Onwuaso is an ICT enthusiast. He believes technology should be used for general good. He holds a Master of Public Administration (MPA) degree from the Lagos state University. Dear Reader, Your support matters. But we believe that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. That is why, we have devoted our energy to independent reportage of technology and finance and how they affect lives. Our incisive and analytical view of how technology news affects the daily life help individuals and organizations make up their minds. Quality journalism costs money. Today, we're asking that you support us to do more. Kindly support our effort to deliver technology and finance journalism to everyone in the world. Donate as little as N1,000. Bank transfers can be made to: UBA Plc 1017156876 Communication Week Media Ltd

Telecom

GSMA Urges Import Duties Exemption for Smartphones

Published

on

Kindly share this post

Global System for Mobile Communications Association (GSMA) has urged African governments to recognise telecommunications as a core economic pillar and implement specific tax reforms that could dramatically accelerate digital inclusion across the continent.

GSMA Urges Import Duties Exemption for Smartphones

Mr. Daddy Mukadi, chair of GSMA Africa’s Policy Group, proposed a two-to-three-year exemption on import duties and taxes for entry-level smartphones priced between $40 and $150 to help bridge the usage gap.

He also called for the removal of entry duties on telecommunications equipment for at least three years to support the expansion of network coverage.

“These measures would help deliver inclusive and sustainable digital technology for economic and social progress. They would also support faster connectivity, improved access and the ability to connect more people, businesses and communities to the digital economy,” he said.

Mukadi who is also the chief regulatory officer of Airtel Africa, spoke at the first edition of the États Généraux du Secteur des Postes et Télécommunications in Kinshasa, DRC, an event convened to support the development of a strategic roadmap for the country’s digital and telecommunications sector and attended President Félix Tshisekedi.

He urged government and industry stakeholders to rethink the role of telecommunications in national development, arguing that it should be framed not as a sector specific concern, but as a continent-wide imperative.

“The telecoms sector can no longer be considered merely as a support sector. It is now a core sector. Both are vital, and every other sector, from security and finance to transport and health, depends on digital technology for growth,” Mukadi said.

His remarks come at a critical moment for Africa’s digital economy. According to the GSMA’s Mobile Economy Africa 2025 report, the mobile sector contributed $220 billion to the continent’s economy in 2024.

This is equivalent to 7.7per cent of GDP and is projected to reach $270 billion by 2030. Yet despite mobile networks now covering 95per cent of Africa’s population, nearly 75per cent of people across the continent remain offline.

The GSMA identifies this gap as Africa’s greatest connectivity challenge, driven above all by the unaffordability of devices.

Mukadi therefore called for strategic adjustments to public policy, as well as legal and regulatory frameworks, to support wider access to digital services. He said the telecommunications sector should be treated as a foundational pillar of economic development, with stakeholders working together to accelerate investment, expand coverage and close the usage gap across the continent.

The Chief Regulatory Officer of Airtel Africa also highlighted key barriers to digital inclusion, including the affordability of smartphones and the impact of import duties on telecommunications infrastructure.

He added that government and the private sector must work closely to create a regulatory environment that encourages innovation, protects consumer interests and supports long-term investment.


Kindly share this post
Continue Reading

Telecom

Court Blocks Telcos from Cutting Nairtime’s Credit Services

Published

on

Kindly share this post

Federal High Court in Abuja has issued an interim injunction restraining MTN Nigeria and Airtel Networks from suspending or interfering with Nairtime Nigeria’s access to critical telecommunications platforms including short codes, SMS, USSD, and billing services, following a directive by the Federal Competition and Consumer Protection Commission (FCCPC) that left Nigerians without a safety net.

Court Blocks Telcos from Cutting Nairtime’s Credit Services

The order, granted on April 24, 2026 in Suit No: FHC/ABJ/CS/779/2026, ensures that millions of consumers, particularly those without access to traditional banking, can continue to access airtime and data on credit, services increasingly vital for daily communication, work, education, and digital participation.

Nairtime, part of the Optasia Group, is a leading provider of airtime and data credit services in Africa and the Middle East, facilitating micro-lending for mobile users.

According to Nairtime, the court’s intervention provides policy certainty and reinforces the legitimacy of its operations, which are conducted under a valid Value-Added Service licence issued by the Nigerian Communications Commission (NCC).

The company noted that the suspension linked to the Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations 2025 risked disrupting services relied upon daily by ordinary Nigerians.

Ms Uchenna Agbo, chief commercial officer of Optasia and chief executive officer of Nairtime Nigeria Limited, said: “This decision is ultimately about protecting underserved Nigerian consumers.

It ensures that millions of people, many of whom are underserved by traditional financial systems, retain uninterrupted access to essential digital services. Over time, using these services responsibly can help them prove reliability and improve their chances of accessing bigger financial opportunities in the future.

“Our platform enables responsible, data-driven lending that keeps people connected when they need it most and we look forward to working with our partners to restore services in a manner that resumes full service value to the Nigerian consumers without further delay.”

Nairtime reaffirmed its commitment to consumer and data protection through stringent governance frameworks and ethical use of artificial intelligence, and emphasised that it shares the broader consumer protection objectives of the Federal Government while remaining open to constructive engagement with regulators and industry partners.

Agbo added: “We have built a system that supports inclusion at scale, while maintaining strong risk controls for industry stability and economic impact. This ruling allows us to continue delivering safe, reliable services that Nigerians depend on every day.

“We remain focused on ensuring that the Nigerian consumer stays at the centre of innovation and will continue working with regulators and our partners, including MTN and Airtel, to promote a fair, transparent, and inclusive digital ecosystem that benefits Nigeria and all Nigerians.”

Optasia, which listed on the Johannesburg Stock Exchange in late 2025 and was founded in Nigeria 14 years ago, provides the infrastructure layer connecting mobile network operators and banks to millions of underserved customers.

Through global partnerships with 50 distribution partners and 17 financial institutions, including some of Africa’s largest MNOs and tier-one banks, the platform uses proprietary AI that processes credit decisions in under one second, using alternative data to assess risk for customers who have never held a formal credit product.

Beyond telcos, the company is also developing new propositions including SME and merchant finance, longer-term and higher-value credit, telco BNPL and revolving credit lines, and embedding its platform across adjacent ecosystems and verticals.

 


Kindly share this post
Continue Reading

Telecom

Truecaller Tags Nigeria as Africa’s Spam Call Capital

Published

on

Kindly share this post

Nigeria has been ranked the most spammed country in Africa, according to a new report by Truecaller has shown. The report showed that more than half of all unknown calls received by Nigerians in 2025 were identified as spam or fraudulent.

About 51 per cent of unknown calls were flagged as spam, placing Nigeria eighth in the world and ahead of African countries like South Africa, Kenya, Ghana and Ethiopia.

According to the report, most spam calls in Nigeria are linked to telecom companies and network-related promotions. Telecom-related calls made up 35 per cent of spam calls, while sales and telemarketing accounted for 10 per cent. Scam calls represented six per cent.

Truecaller said many Nigerians now struggle to know whether an unknown caller is a real network provider, a marketer, or a fraudster pretending to be from a trusted company.

The report also noted that Brazil faces a similar problem, with telecom-related calls dominating spam activities.

Globally, Indonesia ranked as the most spammed country in the world, with 79 per cent of unknown calls marked as spam. Chile came second with 70 per cent, while Vietnam, Brazil and India completed the top five.

The company added that the Middle East and Africa region passed 100 million monthly active users in late 2025, making Africa one of its fastest-growing markets.

Chief Executive Officer of Truecaller, Rishit Jhunjhunwala, said fraud and impersonation calls have become a serious global concern.

He said the company plans to focus more on stopping fraudulent calls before they reach users in 2026.

Truecaller also announced that it surpassed 500 million monthly active users worldwide as of March 31, 2026, with more than 150 million users outside India.


Kindly share this post
Continue Reading

Trending