About 21 million people shopped online in Africa, in 2017, according to a new report (PDF) from United Nations Conference on Trade and Development (UNCTAD). In a continent of 1.2 billion people, that is certainly small. Nigeria, Kenya and South Africa make up 50% of the market.

The digital economy, including electronic commerce (e-commerce), is growing quickly in Africa,

creating new opportunities for entrepreneurs and businesses to expand their market access and join

value chains. Jobs are being created and new business models are emerging. At the same time, the

evolving landscape is creating new risks and challenges. The gains from e-commerce are not

automatic, and the increased use of digital technologies can result in new divides and wider income

inequalities.

It is estimated that there were in 2017 at least 21 million online shoppers in Africa. While this is less

than two percent of the world total, the numbers are rising faster than in other world regions. The

extent to which people and businesses in Africa participate in e-commerce varies considerably, within

and between countries. Three countries – Nigeria, South Africa and Kenya – account for almost half of

them. UNCTAD estimates that the B2C e-commerce market in Africa was worth about $5.7 billion in

2017, which corresponds to less than 0.5% of GDP, far below the world average of over 4%.

Digital entrepreneurship is growing in Africa, but at different speed in different countries. While

comprehensive data are lacking on the extent to which African businesses are selling online, anecdotal

evidence of more e-commerce activity in the enterprises sector is starting to emerge. More and more

micro, small and medium sized enterprises (MSMEs) recognize the importance of digitalization to

participate in domestic and international value chains