The report highlights that emerging markets in Africa, Asia, and Latin America are driving the rise of the new global consumer.

These regions account for 70% of the 109 million people worldwide entering the consumer class in 2024, as per the World Data Lab.

This shift towards digital consumers will significantly impact digital commerce, payments, and the growth of B2B transactions.

While developed nations see a 13% annual growth in digital commerce, Africa is witnessing a much faster expansion at 25%, according to Payments and Commerce Market Intelligence (PCMI).

This growth is expected to propel the continent’s digital commerce market to a staggering US$72 billion by 2026 in its top five markets: Egypt, Kenya, Morocco, Nigeria, and South Africa.

Africa is also projected to contribute more to global consumer spending than Europe in the coming decade.

The report emphasizes the transformative impact of digitalization in Africa. Internet access is expected to become nearly universal in some regions by 2028, with Egypt leading the charge with an anticipated internet penetration exceeding 98%.

However, despite this progress, only 44% of African adults currently engage in online purchases, indicating significant untapped potential for further growth.

Online retail dominates Africa’s digital commerce space, accounting for 58% of the digital volume in key countries in 2023. This trend highlights the crucial role of e-commerce in driving the continent’s digital economy forward.

Unlike developed nations, traditional financial services are not widely accessible in Africa. This has led to the widespread adoption of alternative payment methods (APMs) such as mobile money, which cater to the unbanked population.

In fact, APMs account for a staggering 69% of the total digital commerce value in Africa, compared to just 31% for card payments. While cash remains a preferred payment method, APMs are poised to capture an even larger market share in the future.

The global B2B transaction landscape is predominantly manual, with 70% lacking seamless processes. This presents a significant opportunity in emerging markets like Africa, where B2B digital payments are growing considerably faster than the global average of 11% annually.

These regions are expected to constitute 40% of the total value of online B2B payments globally by 2027. Furthermore, the rise of B2B marketplaces across Africa is contributing to the increased adoption of digital B2B transactions.

This report by EBANX paints a promising picture of Africa’s digital commerce future, driven by a growing consumer base, rapid digitalization, and innovative payment solutions. The continent is poised to play a significant role in the global digital economy in the years to come.

Find out more about the report here – https://www.ebanx.com/en/beyond-borders-2024/