E-Business
Can e-commerce be Africa’s Economic Goldmine?
By Adeniyi Ogunfowoke,
The digital economy in Africa is snowballing, and in the process, it’s creating new jobs and opportunities for digital entrepreneurs to explore a larger web market. Though e-commerce represents only 0.6% of all the transactions done in Africa, as compared to 12% in the USA and 20% in China; the budding nature of the industry does rightfully make one muse on the possibility, that e-commerce is indeed Africa’s economic goldmine.
Facilitation of Cross Border eTrade
The global market has shrunk to a large scale and is now enabling billions of people to sell and purchase products across borders. This has been made possible by technological innovations that have birthed online marketplaces that enable e-trade between businesses (B2B), between consumers (C2C) and between businesses and consumers (B2C).
The opportunities presented by e-commerce are numerous. Africa is a massive market with a growing population of 1.28 billion people, a network of over 15 million SMEs and merchants, and a rising internet connection of 453 million users. Jumia, the leading pan-African e-commerce platform has been at the forefront of Africa’s cross border e-trade revolution. The marketplace is enabling about 81,000 active merchants across Africa, which sometimes source products from international markets, to capitalize on a huge €1.4 trillion consumer market opportunity in Africa.
While the milestone has been remarkable, Nicolas Martin, EVP – Marketplace & Logistics for Jumia, noted, at the 2019 UNCTAD’s Africa Ecommerce Week, that “more needed to be done to tailor bespoke regulatory solutions for Africa to attract international investment and create a conducive environment”. Good payment services are critical in curbing online fraud facing sellers. African governments also need to implement friendlier online taxation policies, to avoid locking out potential entrepreneurs and investors from exploring the ecommerce markets.
Besides, while some marketplaces are creating sustainable logistics systems, the consistent success of cross border commerce will require further and deeper cooperation among stakeholders, both in the private and public sectors. “The power of the marketplace is huge, and the coordinated effort of millions will bring about the change we need in Africa,” added Nicolas Martin.
Powering Employment in Africa
The World Bank reports an alarming rate of unemployed youths in Africa, accounting for about 60% of the unemployed workforce. Bearing in mind that the average age in Africa is 20 years, we need to rethink ways in which to power employment in a continent whose population is estimated to grow to 2.5 billion people by 2050.
Some policymakers are already hitting the nail on the head with the unemployment menace. Not long ago, the Boston Consulting Group (BCG) released a mind-joggling report on how online marketplaces could create 3 million new jobs in Africa by 2025. According to the report, these ecommerce platforms, which match buyers and providers of goods and services, could also boost inclusive economic growth with minimal disruption to existing businesses and workforce norms.
For instance, Jumia, one of the case studies in the report, is already creating 5,000 direct jobs across the 14 African countries in which it operates. This is besides indirect jobs created with sellers, logistic partners, commercial agents, and marketing partners. Other positive economic impacts of online marketplaces in Africa include increasing vendors’ income through surging demand for goods and services in locations currently beyond the reach of conventional retail networks. Furthermore, they are bringing more women and youth – who in some countries have been marginalized from the labour market – into the formal workforce.
Customers’ access to product choice
Choice, convenience and affordability are some of the top benefits customers get from e-commerce. From electronics to fashion, cosmetics, FMCGs, travel and accommodation, online food delivery and payment options, customers are looking for variety and ease of access to their preferred products and services from a one-stop-shop. Ecommerce platforms provide customers with a pool of diverse sellers, that they would otherwise have no access to through offline channels. Notably, there exists low retail penetration rate in Africa, with 1 shop for every 67,000 people as compared to 1 shop for every 1,000 people in the USA.
Conclusion
E-commerce potential to boost Africa’s economy is undeniable. Yet, it’s effectiveness will require the development of the right skills across the various pillars of the industry, among them engineering, marketing, logistics and management. There needs to be an existing conducive environment for doing business at the countries’ level and in the continent at large. This will give both domestic and foreign investors more confidence and encourage budding entrepreneurs to test the e-commerce waters in the continent. The ripple effect being, stronger economic growth!
Human Rights Writers Association of Nigeria (HURIWA) has opposed a bill seeking to compel major global social media companies to establish physical offices in Nigeria.
The rights advocacy group urged the National Assembly to discard the proposed legislation, warning that it could become a tool for censorship and undermine citizens’ constitutional right to freedom of expression, despite being presented as a measure to strengthen Nigeria’s digital economy and improve corporate accountability.
The position was contained in a presentation submitted yesterday by Emmanuel Onwubiko, national coordinator, HURIWA, to the chairman of the Senate Committee on ICT and Cyber Security.
The bill, sponsored by Senator Ned Munir Nwoko, has already passed second reading in the Senate and is before the committee for further legislative consideration.
HURIWA said it carefully reviewed the proposed legislation and concluded that compelling global technology companies to establish offices in Nigeria was unnecessary and potentially counterproductive.
The organisation argued that while the firms generate substantial revenue from Nigeria’s vast digital market, they already engage Nigerians through existing structures, including paying eligible content creators, working with local technology professionals and participating in legal proceedings whenever required.
According to the group, appointing local representatives where necessary would adequately address concerns about engagement with regulators and users without forcing the companies to maintain physical offices.
It also dismissed claims that mandatory country offices would significantly improve consumer complaint resolution, technology transfer or employment generation.
HURIWA maintained that the platforms already have effective feedback mechanisms for resolving users’ complaints and routinely appear before Nigerian courts through their representatives whenever litigation arises.
The group, however, said its greatest concern was the potential for the proposed law to be used as an instrument for restricting freedom of expression.
It argued that establishing local offices could expose global social media companies to pressure from government authorities to remove online content considered critical of those in power.
According to the rights group, the presence of social media companies in Nigeria could become an avenue for authorities to pressure them into abandoning internationally recognised digital rights standards in favour of politically motivated content moderation.
It recalled previous attempts to regulate social media in Nigeria that generated widespread concerns over possible restrictions on free speech, stressing that any legislation affecting the digital space must contain clear safeguards against abuse.
The organisation warned that the proposed law should never become “a backdoor mechanism for government surveillance, arbitrary content removal or political censorship.
Nigeria has emerged as one of Africa’s most regulated online gambling markets, even as illegal operators continue to dominate the continent, according to a new report by Gaming Compliance International (GCI).
The report, the first comprehensive assessment of online gambling across all 54 African countries, showed that Africa’s online gambling Gross Gaming Revenue (GGR) reached $23 billion in 2025.
However, only $5.2 billion (23 per cent) was generated by licensed operators, while $17.8 billion (77 per cent) remained in the unregulated market.
In West Africa, total online gambling revenue rose to $4.8 billion in 2025 from $4.3 billion in 2024. Of the 2025 figure, regulated operators accounted for $1.5 billion (31 per cent), while $3.3 billion (69 per cent) flowed to unlicensed platforms, highlighting the region’s persistent enforcement challenges.
Nigeria stood out as the region’s strongest performer, recording the lowest unregulated market share at 56 per cent, compared with the West African average of 69 per cent and the African average of 77 per cent.
The study also found that online gambling participation across Africa increased from 198 million people (13 per cent of the population) in 2024 to 215 million (14 per cent) in 2025.
Despite this growth, GCI estimated that illegal operators deprived African governments of about $3.55 billion in tax revenue in 2025. The number of unlicensed gambling platforms targeting African consumers also rose to 4,129, up from 3,644 in 2024.
Commenting on the findings, Matt Holt, chief executive officer, GCI, said the report provides regulators with the first continent-wide benchmark for strengthening oversight and consumer protection.
Ismail Vali, president, GCI, urged governments to develop competitive and well-regulated markets that encourage consumers to patronise licensed operators, boost public revenue and attract greater investment.
Online gambling in Nigeria is regulated by the Nation Lottery Regulatory Commission.
At the height of the Northern Hemisphere tourist season, demand for communications and mobile Internet services rises sharply. Kaspersky’s security experts have uncovered scams that target anyone purchasing mobile connections or SIM cards worldwide.
Fraudsters create counterfeit websites that look like the portals of major regional and international telecom providers to trick users into revealing their phone numbers, personal details or banking information.
Kaspersky is sharing several examples of these fake login pages that mimic legitimate telecom operator sites and giving recommendations on how not to be deceived.
In the first case, scammers exploit the brand name of an international telecommunications company operating services in Asia, Africa and Europe. Fake authentication pages encourage users to put in their phone number and credentials.
While the first example shows the different design, the second scam site closely mimics the original log in page, making it hard for users to tell the difference and spot a fake. Entering authentication or payment data on fraudulent web sites may result in money or data loss and become a reason for more frequent spam and fraudulent calls.
Another example is a scam page which poses as another international communications company, working in North Africa, the Middle East and Southeast Asia. In this scheme scammers encourage users to top up their mobile data/Internet plans by entering their personal information and bank cards details.
Kaspersky experts have also identified a scam when cyber criminals suggest users enter their personal data to check and pay a bill inquiry. Such scam schemes are usually aimed at gaining victims’ personal data for further fraud or account hacking and stealing money.
“Because of the active use of AI, scammers can now create fake pages with ever increasing accuracy and speed, targeting the most popular user interest areas. We constantly see scams revolving around sports events, music concerts, seasonal sales and holidays. Unfortunately, the telecoms industry is no exception.
To keep your data and money safe, be vigilant when purchasing mobile or Internet plans online. Using an eSIM – purchased through an official app – is one way to avoid fake telecom sites, as it eliminates the need to enter personal details on questionable web pages.
If you’re unsure about a site’s legitimacy, search for the brand name directly in a search engine and enable a security solution that blocks phishing links for you,” comments Tatyana Kulikova, cybersecurity expert at Kaspersky.
HURIWA, CLO Protests Bill Asking Social Media Firms’ to Open Shops Nigeria
Anambra Govt Bans Graduation Ceremonies in Anambra Schools
Airtel Secures Another 10-year Spectrum Renewal in Nigeria
Moniepoint as a Key Driver in Expanding Financial Access for Businesses in Nigeria
Nigeria, Israel Strengthen Research, Technology Collaboration
NRC, Ponzi Scheme Collapses Resulting Loss of Billions of Naira
EFCC Busts NIS Visa Overstay Racket, Uncovers N700m in an Account
Tokenization, Blockchain Technology will Transform Financial Institutions – IMF
From Scarcity to Scale: What Africa Can Learn from India’s Agricultural Transformation
Spotify partners Afro Nation Portugal to expand African music experience
E-Business3 days agoKaspersky Warns Mobile‑data Buyers about Scammers Posing as Telecoms Operators
General News3 days agoThree Entrepreneurs Secure ₦5 Million at The Gathering on 100 Pitchathon
E-Financial3 days agoChatPay Unveils Public Waitlist for WhatsApp-Based Banking Platform
News3 days agoAfrican Judges Pledge Support for AfCFTA’s Success
Telecom3 days agoAirtel Africa Backs London Listing
Telecom3 days agoGSMA Says High Smartphone Costs Threatens Africa’s AI Future
E-Business3 days agoNigeria Leads Africa in Online Gambling Regulation – GCI
Telecom2 days agoGSMA Supports Abuja Declaration on Meaningful Connectivity for Africa, Joins Partners to Launch ATLAS Umoja