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Why E-commerce is Thriving in South Africa
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.
- 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.
- 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.
- 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.
- 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
- 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.
- 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.
Millions of citizens across Africa are being denied access to essential services due to the rapid imposition of biometric digital-ID systems, a new report by the African Digital Rights Network has revealed.
Biometric
The study, published by the Institute of Development Studies (IDS), found that citizens are increasingly required to provide biometric and personal information as a condition for accessing fundamental rights and government services such as voting, education, healthcare, and social protection payments.
According to the report, marginalised groups including persons with disabilities, the illiterate, and those unable to afford mobile data or electricity for phone charging face significant barriers to registration, deepening existing inequalities.
It noted that many citizens also refuse to enrol due to fears of data breaches and mistrust of governments, with biometric identifiers such as fingerprints, iris scans, and facial recognition raising privacy concerns.
Dr Tony Roberts, Research Fellow at IDS and co-editor of the report, said: “Worryingly, fundamental human rights, like education, healthcare and the right to vote are rapidly becoming conditional on enrolment in biometric digital-ID systems.”
He added that some visually impaired citizens are forced to pay others to help them use their digital-ID on mobile phones to access social protection payments.
‘Gbenga Sesan, Executive Director of Paradigm Initiative and co-editor of the report, said: “Many citizens do not want to enrol for a biometric digital-ID because they have good reason not to trust their governments with their biometrics and personal information.”
The report highlighted examples of massive data breaches and cases where personal data was used to surveil critics and opposition leaders.
It warned that most systems, estimated to cost at least US$1 billion across Africa, lack adequate legal frameworks, robust digital security, and accountability mechanisms for remedy when errors or breaches occur.
The authors concluded that governments must adopt strong legislation to protect citizens’ rights and privacy before rolling out biometric IDs, stressing that systems should be developed with citizen participation rather than imposed top-down.
The report, Biometric Digital-ID in Africa: Progress and Challenges to Date – Ten Country Case Studies, covers Botswana, Namibia, Malawi, Côte d’Ivoire, Senegal, Democratic Republic of the Congo, Liberia, Ethiopia, Egypt, and Tunisia.
Senator Natasha Akpoti has emerged as the most searched personality in Nigeria, according to Google’s 2025 Year in Search report, which highlights the interests and concerns that shaped the nation’s online activity during the year.
The report showed that political conversations dominated searches, with Akpoti’s prominence underscoring the intensity of national discourse. Nigerians also followed global developments closely, including the Israel-Iran War and the United States elections.
The country mourned the passing of former whose deaths prompted widespread searches recalling their legacies and contributions to national life.
Entertainment trends reflected Nigeria’s cultural vibrancy, with gospel hit “Oluwatosin (Jesus Is Enough)” by Tkeyz featuring Steve Hills topping charts, alongside Afrobeats collaborations such as Davido and Omah Lay’s “With You.” Director Kemi Adetiba and the local series “To Kill a Monkey” also drew significant attention.
Google noted that Nigerians displayed curiosity in language and lifestyle, decoding slang like “Labubu” and exploring recipes ranging from Pornstar Martini to traditional Chinchin.
Technology searches were led by interest in the iPhone 17 and Tecno Pop 10, reflecting the country’s embrace of new devices.
“This data offers a real-time window into the Nigerian psyche in 2025, showing a nation engaged, reflective, and creatively vibrant,” said Taiwo Kola-Ogunlade, Google’s Communications Manager for West Africa.
14-year-old Oreoluwa Alayande has been crowned the winner of the MTN mPulse Spelling Bee 2025, following a thrilling grand finale that saw the top 20 contestants from schools across the country compete head-to-head.
MTN mPulse 2025 Spelling Bee
The grand finale of the MTN mPulse Spelling Bee 2025 competition was held on Saturday, November 29, at the MTN Plaza Rooftop. The event also had in attendance the Senior Special Assistant to the Lagos State Governor on Basic and Secondary Education, Opeyemi Eniola and mPulse Spelling Bee 2024 winner, Ikenna Ikechukwu.
As the 2025 MTN mPulse Champion, Oreoluwa was awarded an Educational Grant of N5 Million Naira, the opportunity to be the MTN CEO for a Day, a brand new laptop and smartphone, and the title of the face of mPulse for a year. Her victory also benefits her school, which will receive a N10 Million flagship gift, 10 laptops, and 10 MTN 5G routers, while her teacher receives a N500,000 cash prize.
Oreoluwa, a student of St. Lawrence Metropolitan College, Ado Ekiti, Ekiti State, expressed her gratitude. “I’d like to use this opportunity to thank MTN for providing a platform that empowers youths and increases the vocabulary of students,” she said. “I’d also like to thank my family, everyone who has supported me so far, and my school,” she said.
Speaking at the grand finale, Babatunde Oyeleye, Chief Strategy and Innovation Officer, MTN Nigeria, acknowledged the parents and teachers. “Every year, we bring you all together to see who becomes the exceptional speller in Nigeria, and the participants always perform exceptionally,” Oyeleye stated. “I’d like to say a big thank you to the parents and the teachers. You dedicate your time to nurturing these children, and the feeling of pride is always evident on your faces. We are glad to be enablers of that smile and pride you feel,” Oyeleye said.
The second position, Samuel Babalola, was rewarded with a N2.5 Million Educational Grant, 1 laptop, and 1 smartphone, with his teacher receiving an N300,000 cash prize. Levi Kelechi Ebisike, in third place, won a N1.5 Million Educational Grant, 1 laptop, and 1 smartphone, along with an N200,000 cash prize for his teacher.
The grand finale was streamed live on the MTN Nigeria YouTube channel and on the Holiday Channel 198 on both DStv and GOtv, allowing Nigerians nationwide to watch the brilliant spellers.
The MTN mPulse Spelling Bee continues to be one of Nigeria’s most impactful development initiatives, reiterating MTN’s commitment to promoting literacy and digital inclusivity. The competition, a flagship initiative under the MTN mPulse umbrella, is designed to foster digital literacy, academic excellence, and healthy competition among Nigerian students.
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