Telecom
Nigeria, Egypt Others Drive Africa’s Mobile Commerce Boom
Mobile is driving Africa’s digital economy, with Nigeria, Egypt, Kenya and South Africa leading the continent’s mobile commerce boom.
This is one of the findings highlighted in the white paper titled: “Towards a flourishing digital economy for all – a spotlight on Africa”, produced by the UK’s Department for International Trade (DIT), in partnership with the GSM Association’s Mobile World Live team.
Launched on the sidelines of Mobile World Congress 2022, the research explores the progress made in building Africa’s mobile-driven digital economy.
It also considers specific obstacles in the African mobile commerce market, including unbanked customers, the lack of reliable identity credentials and last mile delivery issues.
Speaking during the launch of the research paper, Dr Mike Short, chief scientific adviser to the UK’s DIT, stated Africa is a mobile-first continent in every aspect of digital.
For the DIT, the definition of e-commerce stretches into mobile commerce, and most of the emphasis of the report is on mobile commerce, explained Short.
“Our report triggers a much-needed discussion on how to advance the mobile commerce revolution in Africa, which will in the long-term lead to mutually beneficial digital trade between the continent and its trading partners, including the UK.”
On a global scale, the world of e-commerce is forecast to reach $7.4 trillion in revenue by 2025, Short told the audience at the UK DIT-hosted mobile commerce thought-leadership breakfast.
“These are huge growth rates by anybody’s estimation, but the share that’s attributed to Africa is $180 billion, and there is a lot of room to grow given it’s such a burgeoning continent.”
UK minister for exports Mike Freer, who also attended the event, concurred that the digital economy across Africa is fundamentally mobile.
He noted that users are mobile first, adding that mobile commerce has already created successful domestic-owned businesses across the continent.
“The continent will seize the opportunities that lie ahead and strive for economic empowerment. Digital trade, particularly mobile commerce, will be at the heart of this growth. By 2050, half of the global trade is expected to be digital.
“In the UK, we are champions of digital trade. Our government supports the opportunities to trade online; we’re helping global investors to supercharge the digital economy.
“Across economies and societies, the UK is committed to standing side-by-side with Africa to support growth in the years ahead,” Freer stated.
According to the white paper, e-commerce is booming across Africa, with Nigeria, Egypt, Kenya and South Africa making notable progress.
“For example, Nigeria is home to a thriving content production sector (Nollywood, etc), which is driving a strong market for digital products.
“Kenya’s market has been shaped by the success of its mobile money platforms. Kenyans now use M-Pesa and others to make cashless payments at retail, pay utility bills, and buy insurance and savings products.
“South Africa is different again. It has a much higher percentage of banked consumers, which has reduced the need for mobile money platforms. Its MNOs [mobile network operators] are also playing a key role in the evolution of its digital economy.”
On the issue of challenges in advancing mobile commerce on the continent, the report notes digital infrastructure and the issue of identity among the most notable obstacles.
It states that a thriving digital economy requires a strong base of connectivity, customer identity and last mile delivery.
Short explained that 58% of Africa’s population is covered by 4G – it’s not yet a 5G world. In some rural areas, internet usage is as low as 26%. Furthermore, those with feature phones won’t get a suitable mobile commerce experience.
The report highlights that for most Africans, the mobile internet is the internet. “E-commerce marketplace Jumia, which has 7.3 million active customers across Africa, says 75% of its customers use smartphones to shop on its platform.
“On a positive note, Africa’s mobile-centric infrastructure means it is also unencumbered by many of the legacy technologies that slow progress in the rest of the world. It doesn’t have the ageing infrastructure of Europe or the US.
“Because it is mobile-first, it can build infrastructure from scratch to facilitate wireless smartphone-oriented service.”
According to the report, in the world of physical commerce, especially in a cash economy, identity is not really a barrier to making a purchase. When commerce goes digital, things change.
“In developed countries, digital ID generally centres on a combination of bank card, phone, address, e-mail and so on,” it states. “But in Africa, many of these elements are unavailable.
“It is estimated that 29% of adults in Sub-Saharan Africa have no way of identifying themselves. The percentage is much higher among women, youth and the very poor.”
However, there are efforts to address this challenge, with many African countries trialling digital ID programmes that are robust and workable despite the absence of bank accounts and even postal addresses.
For example, Egypt was the first nation to launch a national ID programme using vein biometrics. Kenya’s answer is to give every person in the country a unique “Huduma Namba” – Swahili for ‘service number’ – which will allow them access to all government services.
The Nigerian government launched a national identity card in 2015. It contains a chip that securely holds the national identification number, address, name and other details. It also supports fingerprint recognition. Most important for digital commerce, the card gives previously unbanked Nigerians a tool for payments.
Many African companies and state bodies have adopted online addressing system and mobile app, what3words.
In 2020, Vodacom South Africa zero-rated what3words for its 43 million subscribers. Meanwhile, Zulzi, the on-demand grocery delivery company in South Africa, has integrated what3words into its delivery process.
Short stated: “We recognise that things like addresses are not as uniformly used in some parts of Africa as in other parts of the world.
“The whole area of identity management is a key enabler for Africa’s mobile commerce. It’s not just about networks, it’s not just about smartphones; the identity and the addresses are needed to participate in a thriving digital economy.”
The need for Nigeria to think outside the box in its need to drive towards global relevance with innovations and scientific developments will be on the front burner at the NITRA Innovative & Scientific Conference scheduled to hold on Thursday July 23, 2026 in Ikeja, Lagos.
NITRA
The Nigerian Communications Commission (NCC) will lead other delegates to discuss and take far-reaching decisions at the event, which has its theme as “Bridging Nigeria’s Digital Divide With Scientific Innovation”.
Other companies that have indicated interest in partnering with NITRA include mobile communications company, Tecno; Africa’s premier end-to-end AI solutions company, Hyperspace; and telecommunications data infrastructure company, Digital Realty.
Speaking on the proposed event, the Chairman, Nigeria Information Technology Reporters Association (NITRA), Chike Onwuegbuchi noted that the event will seek to create a platform for government and private organisations to deliberate on policies around scientific innovations in Nigeria, challenges, place of indigenous and foreign collaboration, roles of each stakeholder, and grassroots development in that regard, among others.
According to him: “The Federal government, with series of programmes and partnerships, has established the urgent need to create an ecosystem that thrives on scientific innovation, breeding institutions and individuals with a target of placing the country at the fore-front of Next-Gen development.
It is a known fact that digital and scientific innovations are crucial, not only to the survivability of a nation, but also to the sustainability of its growth and development, with significant effect on economic strength, global image, defense and security, government capabilities to function, and public health and safety, communication and digital footprint, among others.
The federal government is actively driving scientific innovation to foster economic diversification and build a $1 trillion economy by 2030. Efforts are heavily focused on commercializing research, establishing massive research funds, and funding strategic infrastructure, particularly in technology, biotechnology, and healthcare. Core government initiatives and policies include the newly instituted National Research and Innovation Development Fund (NRIDF), which aims to mobilize about $500 million annually to support research and the commercialization of scientific outputs; and the Nigeria Genomic City, a multi-ministerial initiative aimed at transforming Nigeria into a leading hub for genomics, precision medicine, and biotechnology. It is designed to protect indigenous data, stimulate artificial intelligence in health, and develop a highly skilled scientific workforce.
According to the General Secretary of NITRA, Mr. Chidiebere Nwankwo, the forum will also be a vehicle to propagating the views of decision makers to the public, thereby furthering the cause of public awareness and information dissemination on the topic.
The focus, he said will be on how Nigeria can sustain digital innovative growth and scientific development in Nigeria
The board of global payments company, PayPal, says a 53 billion dollars takeover offer from financial technology firm, Stripe, and private equity company, Advent International, does not adequately reflect the company’s long-term value.
PayPal
According to reports, the proposed acquisition, valued at 60.50 dollars per share, remains under consideration, with the board yet to formally respond to the offer.
The directors are said to be evaluating not only the financial value of the proposal but also the structure of the financing, the timeline for completing the transaction and the likelihood of obtaining regulatory approvals.
They are also considering the possibility of competing bids emerging.
Although the offer represents a premium of about 28 per cent above PayPal’s recent share price, the board believes the company could deliver greater value to shareholders if its ongoing turnaround strategy succeeds.
Following reports of the bid, PayPal shares gained about two per cent to close at 56.73 dollars.
Sources familiar with the discussions said Stripe and Advent have secured approximately 50 billion dollars in debt financing from JPMorgan and Morgan Stanley, while both firms would jointly contribute 17 billion dollars in equity.
Under the proposal, the two companies would jointly own PayPal instead of dividing its operations.
PayPal, Stripe, Advent International, JPMorgan and Morgan Stanley have all declined to comment on the proposed transaction.
The discussions come as PayPal seeks to strengthen its business after years of increasing competition from rivals including Apple Pay, Google Pay and emerging financial technology firms.
The company, which was valued at about 360 billion dollars in 2021, now has a market capitalisation of approximately 36 billion dollars.
Since assuming office as Chief Executive Officer in March 2026, Enrique Lores has embarked on a restructuring programme aimed at improving operational efficiency and restoring growth.
The restructuring includes the creation of three business divisions comprising Checkout, Venmo and Consumer Financial Services, and Payments and Crypto.
The company is also targeting 1.5 billion dollars in cost savings through the deployment of artificial intelligence technologies.
PayPal’s latest financial results indicated signs of recovery, with first-quarter revenue rising seven per cent year-on-year to 8.35 billion dollars, while total payment volume increased by eight per cent to 464 billion dollars.
If approved, the transaction would combine two of the world’s largest digital payments companies.
The combined business would process an estimated 3.7 trillion dollars in annual payment volume, significantly strengthening its position in the global online payments market.
However, analysts expect the proposed acquisition to face intense regulatory scrutiny because of the companies’ combined market share in merchant payment services.
To address possible antitrust concerns, the bidders have reportedly considered options, including separating PayPal’s Braintree business or other assets if required by regulators.
Sources said Stripe and Advent remain interested in pursuing the acquisition despite the board’s reservations, although negotiations are expected to continue.
Market observers are also awaiting PayPal’s earnings report scheduled for July 28 for further indications of the company’s financial recovery and future growth prospects.
Concerns over network reliability and its impact on Nigeria’s growing creator economy took centre stage at MTN Nigeria’s Data on Trial event, where content creator and streamer, Jarvis, challenged telecommunications operators to improve connectivity for digital creators.
Speaking during the event, Jarvis asked whether there were locations in Nigeria where uninterrupted internet connectivity could support real-life (IRL) streaming without network disruptions.
“Are there places where there is no breakage when streaming IRL?” she asked.
Her question highlighted the challenges faced by content creators who depend on stable internet services for live streaming, content uploads and real-time engagement with audiences.
Responding, MTN Nigeria’s Chief Technical Officer, Mr Yahaya Ibrahim, said network performance depends on several factors, including location, network coverage, device capability and the number of users connected to a particular base station.
He noted that operators continue to invest in expanding network capacity to meet the growing demand for data services.
Earlier, MTN’s General Manager, Network Performance and Quality Assurance, Mr Michael Ndukwe, explained the evolution of mobile network technology in Nigeria, from first-generation (1G) services to the current fifth-generation (5G) technology.
According to him, each phase of technological advancement has significantly increased network capacity and enabled new digital services.
Ndukwe cited Nigerian Communications Commission (NCC) data showing that Nigerians consumed about 13.2 million terabytes of data in 2025.
He added that data usage reached approximately 4.06 million terabytes in the first quarter of 2026, reflecting the country’s increasing reliance on digital platforms and online services.
According to him, the growth is being driven by wider adoption of 4G and 5G networks, increased smartphone penetration, the proliferation of smart devices and expanding use of social media platforms.
Participants at the event noted that as more Nigerians build businesses and careers around digital content, access to reliable and high-speed internet has become critical to sustaining the country’s digital economy and creator ecosystem.
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