E-commerce has been on a steady growth in Africa with Nigeria, South Africa and Kenya being the major contributors to this growth.
An estimate by the Statista research firm forecasts that ecommerce sector in Africa will generate a revenue of $29 billion by 2022 which will be approximately 176% increase from 2017 revenue of $16.5 billion, resulting to 35.2% average annual ecommerce growth rate in Africa.
With about 40% internet penetration rate and a population of around 1.25 billion, Africa is projected to make more significant impact when it comes to online shopping.
Some of the major impediments to ecommerce in Africa are delivery difficulties due lack of national street address and lack of paved roads in many African countries and the issue of trust due to fraud.
We conducted a survey among 12,504 individuals in Africa with keen interest in online shopping to help us determine the level of trust for ecommerce in Africa. 1,492 survey entries were disregarded due to incomplete, incorrect and multiple entries.
The survey targeted respondents from six African countries including South Africa, Nigeria, Kenya, Algeria, Morocco and Egypt. Top online stores that were included in the survey are;
- Amazon – All six countries
- AliExpress – All six countries
- Gearbest – All six countries
- Jumia – Operates Nigeria, Kenya, Algeria, Morocco and Egypt
- Takealot – Operates in South Africa
- Kilimall – Operates in Kenya
- Konga – Operates in Nigeria
- Bidorbuy – Operates in South Africa
- Zando – Operates in South Africa
- Ouedkniss – Operates in Algeria
Participants were asked to vote ‘High trust’ if they can trust a participating online store (available for their respective countries) in all aspects, ‘Low trust’ if they cannot and ‘Not sure’ if they don’t know whether or not they can trust the online shopping site.
In general, local online shopping sites recorded higher trust rating than the foreign sites.
Amazon has highest trust rating among foreign ecommerce sites with 60.6% of ‘high trust’ votes, 22.6% of the respondents voted low trust and 16.8% said they are not sure.
With 32.1%, AliExpress came out with the highest ‘low trust’ rating for foreign online stores while Gearbest has the highest ‘Not sure’ responses with 60.9%.
Overall trust rating for ecommerce in Africa is 57.8%, low trust is 18.3% while not sure is at 23.9%.
Ecommerce trust rate per country..
Jumia has the highest ‘high trust’ rating for ecommerce stores in Nigeria with 88.7% and 14.6% ‘Not sure’ rating. This is not so surprising because Jumia still supports cash on delivery which is the most preferred method of payment in Nigeria.
Amazon is the most trusted among foreign ecommerce stores in Nigeria with 62.8% high trust while Gearbest has the highest ‘not sure’ rating with 72.3%.
In South Africa, AliExpress recorded the highest trust rating with 63.2 % and 50.2 % for Amazon. Takealot is the most trusted ecommerce store in the county with 87.8% ‘high trust’ rating. Zando which is a Jumia owned online fashion store has 57.1% for ‘high trust’.
In general, ecommerce in South Africa has ‘high trust’ rating of 55%, 21.3% ‘low trust’ and 23.7% ‘not sure’ rating.
Kenya has the highest overall ‘high trust’ for ecommerce in Africa after Morocco with 62.9%. Two of the most popular online stores; Jumia and kilimall got 83.6% and 87.7% for ‘high trust’ respectively.
In 2019, Kenya has the highest internet penetration rate per country in Africa with 89.8% (source), thanks to M-Pesa. M-Pesa is a mobile wallet that was introduced by Safaricom – a mobile telecom provider.
According to Emergent payments, M-Pesa is used by more than 45% of Kenyan adults. The provision of secure payment gateway is what encourages frequent online buying and steady internet usage in Kenya.
Egypt recorded the lowest overall ‘high trust’ for ecommerce among the six participating countries with 54.3% and highest ‘not sure’ rating of 31.5%.
Jumia is well trusted by 74.5% of the respondents from Egypt. Amazon is also well trusted in the country with 69.3% ‘high trust’ level.
As mentioned earlier, Morocco has the most ‘high trust’ overall rating for ecommerce which 65.7% of the total respondents accounted for. 82.7% of the participants said they trust Jumia more when it comes to online shopping in Morocco.
‘High trust’ for Gearbest in Morocco is also the biggest among all the participating countries with 50.3%. AlixExpress has highest ‘high trust’ votes for foreign online shopping sites with over 70% rating.
Algeria has the highest average ‘high trust’ rating for foreign ecommerce store with 53.3% average rating. Jumia got ‘high trust’ rating of 77.1% while Ouedkniss – Most popular ecommerce store in the country that is based on auction recorded 52.6% ‘high trust’ rating.
Over the period of March to October 2019, 12,504 people from six (6) different countries in Africa were surveyed through our online survey platforms, these countries includes South Africa, Kenya, Nigeria, Morocco, Egypt and Algeria, where online shopping is very much present. Differences in age, intelligence and psychological levels were not considered.
Entries with incomplete and incorrect answers were disregarded as well multiple entries by the same IP address.
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