The mobile economy accounts for over 7.5% of the African GDP, a staggering 2.4% higher than the global aggregate. This number is stunted by smartphone adoption – estimated to reach only 67% (SADC) by the end of 2025. Comparatively, the US boasts a whopping 97% smartphone adoption as of the end of 2020.
Despite the many challenges the market has faced (and continues to face), eCommerce and the broader digital/mobile economy continue to experience ground-breaking growth in Africa. In the spirit of Heritage Day, OneDayOnly.co.za are taking a look at the evolution of eCommerce in South Africa since the ’94 elections and how it has helped shape our country.
2004
Kulula.com becomes SA’s largest consumer website netting R1-Billion in a single year.
2010
A small two-man team launches OneDayOnly.co.za, South Africa’s first daily deals eCommerce site. A classic garage start-up, OneDayOnly.co.za would offer one single deal for a 24-hour period, available exclusively online (obviously). As of 2021, OneDayOnly.co.za has created jobs for over 250+ employees, a testament to the value of the eCommerce market to South African job seekers.
2011
Online retail in South Africa achieves unprecedented expansion, achieving record growth of 40% from the previous year.
2014
When it launched as an over-the-phone food delivery service in 1992, few would have predicted that Mr D would become the largest online food delivery service in South Africa, however, that’s what happened in 2014. At the same time, OneDayOnly.co.za saw steady growth, shifting the focus from offering one amazing daily deal to multiple. The growth of OneDayOnly.co.za matches the adoption of online shopping, with more and more people naturally beginning to embrace the convenience offered by eCommerce.
2019
jumia.com, a Nigerian competitor to Amazon, becomes the first African-based unicorn IPO and raises $196 Million within 24 hours of the stock launch. The success of the pan-African brand shows the world that African businesses, and African eCommerce in particular, should be taken seriously. Success stories like this shed light on the need for government to bridge the many gaps between potential markets and the eCommerce sector, with emphasis on job opportunities.
2020
COVID-19, as well as the introduction of stringent lockdown regulations, caused a surge in the online retail space. While the market was predicted to have seen around 20% YOY growth, the market exceeded every analyst’s prediction, achieving 66% growth from 2019.
In conclusion, many years ago the internet landscape was completely different to how it looks now. Many of the now-normal internet offerings were still works in progress. Streaming services such as Netflix were nothing more than bit-part players compared to things like DVD stores and satellite TV. Back in 2010 only 9.6% of Africans had internet access, far behind both the world average (30%) and the developing-country average (21%).
All these things made it the perfect time to test the eCommerce waters. Because everything was about to change.
“A mountain of innovation and problem-solving awaited those lucky enough to be in the sector. Things like online payment solutions, servers and databases and backends, the rise of smart phones and apps, and concepts that played into cross-channel advertising. All this and more flourished between 2010 and 2020, and it allowed eCommerce to go from a take-it-or-leave-it industry to something that demanded the attention of shoppers, suppliers, and retail stores alike.” Said Matthew Leighton from OneDayOnly.co.za
eCommerce is both tall and far-reaching, and it is only growing.
