Jumia leading the e-Commerce revolution in Africa [Business Africa]

This week, Business Africa highlights three trends in Africa: the rise of e-commerce, the growth of mobile gaming in Ghana, and the challenges of mushroom wine production in Uganda.

The E-commerce Revolution in Africa

Africa is experiencing a rapid digital transformation with the rise of online commerce. According to fintech Nikulipe, the e-commerce sector is expected to grow by $15 billion by 2028, a nearly 49% increase over four years. In 2017, only 13% of Africans shopped online, but this figure could reach nearly 50% by the end of next year.

Jumia, the market leader, is preparing for expansion through better cost management and warehouse centralization strategies. However, challenges remain, including payment methods and high shipping costs. Rennaud Glenisson, Regional Director at Jumia, emphasizes:

“In Africa, it’s not enough to implement digital solutions; every step, from payment to delivery, must be adapted to local realities to truly succeed in this complex market.”

He also discusses the impact of government initiatives, such as the planned free trade zone for 2027, which could offer new market opportunities for companies like Jumia.

Mobile Gaming on the Rise in Ghana

Mobile gaming is gaining traction in Ghana, supported by improved internet connectivity and increased smartphone adoption. With an expected 7.5 million users by 2027, this sector promises to boost local development. Mobile game revenues are projected to exceed $90 million this year, while the broader video game market could reach $135 million.

Kwesi Hayford, President of the Ghana E-sports Association, highlights the importance of developing local games to create economic opportunities and jobs, despite the dominance of imported games.

Mushroom Wine: An Ugandan Farmer’s Ambition

In Uganda, Milly Ssebaggala dreams of producing mushroom wine for both local and international markets. However, there are numerous challenges: a saturated alcohol market, production constraints, and limited capital.

The global mushroom market is estimated at $55 billion, but Ugandan producers must compete with Asia-Pacific giants. For more details, watch this report by Raziah Athman.