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Why E-commerce is Thriving in South Africa

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South Africa’s ecommerce sector is expected to exceed USD21 billion by 2025, with more than one billion transactions per year. This is largely due to the proliferation of smart devices and the expansion of internet connectivity which has created a viable environment for e-commerce to thrive in the country.

Additionally, the increasing integration of e-commerce platforms with various advanced technologies such as cloud computing, artificial intelligence and predictive analytics is also significantly driving the growth of the South African e-commerce market. As a result, the country is becoming a significant player in the global e-commerce industry.

Indeed, the rise of e-commerce in South Africa holds immense opportunities for businesses looking to enter the market. Further, the development presents useful learning points for other countries, such as Nigeria and Kenya, among others, all of which this SeerBit whitepaper exhaustively explores.

Factors Driving E-commerce Growth in South Africa

E-commerce growth in South Africa has been driven by several factors, including increased internet access, improved payment options and the convenience and efficiency of online shopping.

  1. Increased internet access: Mobile penetration among South African consumers is higher than ever, as indicated by research results from a Geopoll survey conducted in 2020 showing that 45 percent of the South African population browsed the internet on their smartphones for more than four hours a day. The study also revealed that South Africa is one of the biggest adopters of mobile technology in sub-Saharan Africa, with higher rates of smartphone adoption than in most other countries in the region. In terms of total numbers, there are 46.9 million smartphone subscriptions in South Africa, which accounts for users who have multiple phones. As of January 2024, there were 45.34 million active internet users in South Africa.
  2. Convenience and efficiency of online shopping: For South African consumers, convenience is key when it comes to choosing which online platforms to purchase from. This reduced need to visit a physical store was also identified in a research paper published by Deloitte. The research found that 26 percent of consumers in South Africa said they prefer to shop online because it is more convenient.
  3. Improved payment options: The integration of wallets, bank apps and shopping apps has made browsing through virtual shopping aisles easier than ever before. Digital wallets have become an entry point for consumers to engage with financial services, thereby creating new opportunities to target the under-served banking population. Also, as South Africans become more comfortable with the concept of online shopping, their appetite for e-commerce solutions continues to increase.

Overcoming Challenges Faced by E-commerce Businesses in South Africa

Despite South Africa’s strong e-commerce growth, the  WEF has noted  that e commerce entrepreneurs are challenged by issues such as low consumer trust and e-skills, low internet penetration and affordability, uncompetitive delivery infrastructure, fragmented markets and barriers to cross-border e-payments.

  1. Low Trust of Online Platforms

Many South Africans still do not trust online stores with their personal payment details. This stems from lack of knowledge about online payment systems and advanced security measures. To overcome this mistrust, merchants should use a PCI DSS certified payment service provider (PSP) that meets high security standards and keeps customer information safe. If customers understand how online fraud is prevented and the techniques that are used to prevent security breaches or fraud attempts, they are more likely to trust an e-commerce website with their payment information

  1. High Cost of Data and Internet Penetration

South Africans pay up to USD5.29 per gigabyte (GB) of data, a cost equivalent to nearly four hours work for people earning the minimum wage. That compares with about USD1.53 per gigabyte in North Africa and USD2.47 in Western Europe, according to research by the Ichikowitz Family Foundation charity that highlights, among other topics, sub-Saharan Africa’s sky-high data costs.  The region has the world’s most expensive mobile data prices, according to the Worldwide Mobile Data Pricing 2021 report.

  1. Issues with delivery infrastructure

Logistics is already a vital part of any retailer’s business plan, but its importance will continue to grow as the use of e-commerce for transactions increases. For stores to be efficient, they must be able to respond quickly and accurately to be able to deliver the correct products to customers on time. Now more than ever an efficient supply chain is needed that gives a high level of service across all channels.

The Role of Technology in Shaping South Africa’s E-commerce Landscape

Technology has become an integral part of every aspect of life, and the retail industry in South Africa is no exception. As consumer expectations continue to evolve, retailers are embracing innovative technologies to enhance the shopping experience and stay ahead of the competition.

Emerging technologies including contactless payments, virtual and augmented reality experiences, AI and mobile payments are all having a profound impact on e-commerce in the country.

Conclusion

The growth of South Africa’s ecommerce industry will likely surpass projections, thanks to the country’s growing appetite for online shopping. The penetration of smartphones, access to data, increased number of platforms and products as well as evolving regulation supporting the industry are significant factors contributing positively to the growth of the industry.  There has never been a better time for businesses to enter the ecommerce market in South Africa.

This SeerBit whitepaper casts a deeper look at the trends, factors, future prospects and leading players transforming South Africa into the continent’s biggest e-commerce market.

Click HERE to access the full whitepaper.

 


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Ugo Onwuaso is an ICT enthusiast. He believes technology should be used for general good. He holds a Master of Public Administration (MPA) degree from the Lagos state University. Dear Reader, Your support matters. But we believe that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. That is why, we have devoted our energy to independent reportage of technology and finance and how they affect lives. Our incisive and analytical view of how technology news affects the daily life help individuals and organizations make up their minds. Quality journalism costs money. Today, we're asking that you support us to do more. Kindly support our effort to deliver technology and finance journalism to everyone in the world. Donate as little as N1,000. Bank transfers can be made to: UBA Plc 1017156876 Communication Week Media Ltd

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MTN Launches “See Naija” to Showcase Nigeria’s Rich Cultural Heritage

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MTN Nigeria, a leading telecommunications company in Africa, has set an adventurous mission of changing the perceptions and narratives surrounding Nigerians and Nigeria through a thoughtfully curated, culturally sensational, and socio-economically intentional platform and campaign called “See Naija.”

“See Naija” aims to harness the rich diversity, culture, resilience, uniqueness, and “can-do-it” spirit of Nigerians worldwide through an individual lens while also positioning Nigeria as a viable tourism hub among the community of nations.

According to available data, Nigeria’s tourism sector could be losing between $5 billion to $10 billion annually, while the contribution of tourism to GDP is only around 1.2% to 1.5%, compared to 7-10% in other African nations. Furthermore, a significant drop in international arrivals and the potential to create over 2 million jobs remain unfulfilled. Experts estimate that investments of $1 billion to $3 billion are needed to improve travel conditions.

Speaking about the idea that birthed the “See Naija” campaign and platform, Emamoke O, the General Manager of Brand & Communication at MTN Nigeria, noted that although there are many positive things Nigerians are known for, most of the information available on the internet is largely negative, thereby setting the tone for wrong perceptions about what Nigeria and Nigerians represent.

“The essence of ‘See Naija’ today is to erase all the negativity Nigeria is known for as a country. We are our brand; every Nigerian is unique. When you travel anywhere, you can spot a Nigerian easily, by the way we talk, dress, and express ourselves,” she explained.

“This platform will showcase to the world, not only to Nigerians, what we are made of: our food, our fashion sense. Even as a Nigerian, there are so many waterfalls I have never been to. We want Nigeria to be a place people search for when they want to explore tourism—where to go in Nigeria, and we want travel agencies and hotels to be part of this clarion call. At the end of the day, we aim for organized tours, with guides who can talk about Nigeria and our uniqueness.”

She recounted a personal experience: “I attended a program abroad, and we had about eight nationalities in the group. We were supposed to talk about our countries—the things that make them the best, the investment opportunities, and more. One evening, someone from Poland gave me a sneering look, likely due to the negative information about Nigeria, like corruption and so on.”

“When it was my turn to showcase Nigeria and discuss opportunities such as agriculture and oil, which is our economic stronghold, he asked where I lived. I replied I lived in Lagos, the commercial hub of Nigeria.

“He pressed further and asked me to show him Lagos on Google. Of course, I typed ‘Lagos,’ and you can guess what popped up: Oshodi, with dustbins and yellow buses—almost everything negative.”

“This was highly embarrassing to me and all the other people from Saudi Arabia and other countries who were staring at me. However, there was someone else who could relate to the better sides of Nigeria as a beautiful place. Immediately I got back home, I told my team we needed to put a program together to show what Nigeria is really about to the world because I had a very awkward experience.”

“I realized that typing my country into Google yields too much negativity. I know there are algorithms, but by flooding the internet with our good things—our resilience, our outspoken nature, and many positive attributes that distinguish us—we can change this narrative.”

Ayham Moussa, the Chief Operating Officer at MTN Nigeria, noted that MTN is leveraging its trailblazing, path-finding, and audacious approach in Africa to celebrate the “World Tourism Day” and honor the Nigerian fighting spirit, winning spirit, and progressive spirit.

“Today, the whole world celebrates tourism, and at MTN Nigeria, we cannot let that pass without recognition. We are known for making noise, for making progress, and tourism allows people to see the beauty and culture in places,” he said.

While reminiscing about his heartwarming experience joining MTN Nigeria, he stated, “When I joined MTN Nigeria a few weeks ago, the first thing I noticed was the warm welcome and acceptance. I see Nigerians as fighters, winners, and people willing to do everything it takes to progress. We at MTN Nigeria stand for Africa, but Africa is Nigeria. We stand for progress and for showcasing the amazing things about Nigeria. I am excited about what the team has put together today; they have done a lot to promote and make people ‘See Naija.’”

“See Naija” also registered a colorful display of Nigeria’s top-notch cultural elegance and artistic brilliance, offering Nigerians the opportunity to showcase beautiful and notable places in Nigeria.

Speaking, Ololade Odukoya, MTN Nigeria’s Digital Marketing Manager, said the “See Naija” campaign and platform provides opportunities for Nigerians to upload 2-minute videos on their social media handles and on [www.mtnng/see-naija](http://www.mtnng/see-naija).

“Now that you have seen Naija—the culture and the beauty in our diversity—we are calling on everyone to come together and join us in this narrative to change the story positively. There is the ‘See Naija’ challenge today, and we all need to be part of it.

All you need to do is upload a 2-minute video on any of your social media platforms and the MTN website. Don’t forget to tag #Naija. We can’t wait to see your lovely submissions.”

In his closing remarks, Frank Okwuye, Senior Manager of Brands and Communications at MTN Nigeria, reiterated that the “See Naija” campaign and platform aim to showcase the good features of Nigeria to the world.

“We are the brand Naija, and as we go from here, let us begin to carry the message forward because this program already showed us that Nigeria is a beautiful place—a place to excel and where dreams and aspirations can be achieved. It is the beginning of a great journey; when it will end is not feasible or in sight, as it is like an onion that one would begin to peel and peel.”

“And if you listen to the poem’s rendition, you will discover the different dimensions of who we are, both as a people in terms of culture and everything we represent. ‘See Naija’ is both a campaign and a platform. It is a campaign because we are telling the true story of Naija, and we are going to showcase it to the world.”

“It is also a platform because we have created a digital space where everybody can not just ‘See Naija’ and what is good in Naija, but also bring their content there. It is a platform where you can showcase the best of Naija. In a way, we are all part of this project. So whatever you know about Naija, capture it and bring it to that platform and encourage others to do the same. As we do this, we begin to change our narratives.”

“One step at a time, one day at a time, and in years to come, we shall see people paying money to come on holiday in Naija because there is so much to Naija. This is not just MTN’s project; it’s your project and our project because we are the Naija that people see. So let’s take it upon ourselves and begin to showcase everything good about Nigeria.”


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“Shark Tank of Crypto” Reality Show Wraps Up Season 1, Secures Over $35M in Committed Investments

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CryptoKnights has completed its highly anticipated first season. This show, often referred to as the “Shark Tank of Crypto,” brings together the brightest minds in the decentralized world to evaluate and invest in the most promising crypto and blockchain-based projects.

Over 15 projects, selected from thousands of applications, successfully secured commitments totaling more than $35 million USD.

Conceptualized by visionary entrepreneur and CEO of Ritestream, Riaz Mehta, and brought to life by Ritestream’s Chief Strategist Joseph Khan, the show is set to premiere in December.

It is poised to introduce the crypto world to a mainstream audience, offering viewers an exclusive look at the unfolding future of finance.

Hosted by renowned actor/entrepreneur Adrian Grenier, known for his iconic role in Entourage, CryptoKnights features a distinguished panel of judges, including some of the most influential figures in the Web3 space: Brock Pierce (Co-founder of Tether), Kyle Chassé (Founder of Master Ventures), Aly Madhavji (Founder of Blockchain Founders Fund), Magnus Grimeland (CEO and Founder of Antler), and Nikita Sachdev (Founder of Luna Media Corp). These judges not only offer their financial investments but also provide invaluable guidance, access to their extensive networks, and long-term advisory support to help projects excel beyond the show.

While the judges deliberate in the Knights Crypt room, influencers Kim Lee and Gav Blaxberg provide commentary from the Boiler Room.

Kim Lee, a renowned DJ and Bling Empire personality, offers insights that resonate with everyday viewers, representing the non-technical audience. Gav Blaxberg, CEO at Wolf Financial, brings the Gen Z perspective, highlighting trends that appeal to younger generations.

Brock Pierce, Co-founder of Tether, said, “Over the years, I’ve been at the forefront of the blockchain revolution, witnessing firsthand how it has the power to reshape industries and redefine what’s possible. CryptoKnights is not just a show; it’s a movement—a platform where innovation meets opportunity.”

He added, “I’m looking for the next Unicorn, but they often come from the most unexpected places. I believe in this show [CryptoKnights]. We will discover the Next Big Thing, the next killer app that is going to change the world.”

Actor Adrian Grenier added, “Web3 can be complex, but it’s essential for people to understand its potential. CryptoKnights bridges that gap, making the technology accessible to everyone. As the host, I’m excited to guide viewers through this journey, demystifying Web3 and showing how it can empower everyone, not just the tech-savvy.”

Riaz Mehta, the creator of CryptoKnights and CEO of Ritestream said, “My vision for CryptoKnights is to demystify the groundbreaking technology of blockchain because I firmly believe it will change our world in unimaginable ways. At CryptoKnights, we are committed to investing in projects that offer real, tangible solutions and drive meaningful change. By providing a platform for education and engagement, CryptoKnights seeks to inspire a global audience to see the true potential of blockchain innovation, supporting projects that define the next generation of impact and create a more equitable future for all.”

The creation of CryptoKnights was made possible through Ritestream which raised $1.5 million in decentralized funding.

Negotiations are underway with major platforms for the show’s broadcast, expected to premiere in November 2024.

This first-of-its-kind show is set to offer unparalleled insights into cryptocurrency and blockchain technology, positioning itself as a must-watch for anyone interested in the digital finance revolution.


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IHS Partners LSI to Deepen STEM in Schools with Global Educators Program

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Telecommunications infrastructure provider, IHS has expressed commitment to advancement of Science Technology Engineering and Mathematics (STEM) through the Global Educators Program.

Global Educators Program is one-year sponsored training on STEM and space education of secondary school teachers, hosted in the United States and partially in Nigeria.

The program is sponsored by IHS Nigeria in collaboration with Limitless Space Institute (LSI).

The ten beneficiaries, selected from various regions across Nigeria, were hosted at a roundtable event in Lagos recently organized by IHS Nigeria and LSI.

The program, a ground-breaking initiative aimed at providing professional development in STEM fields tied to space exploration, seeks to inspire both educators and students while enhancing STEM learning experiences.

Speaking on behalf of IHS Nigeria, Mohamad Darwish, Chief Executive Officer commended the teachers for their commitment to advancing STEM education. He pledged IHS Nigeria’s ongoing support for initiatives that train more teachers and students in STEM and space science education.

In addition, Dapo Otunla, Chief Corporate Services Officer at IHS Nigeria, expressed his pride in the program’s success.

“For us, education and economic growth are key pillars of our sustainability program, with the mind as the foundation for all progress,” he said. “IHS has been deeply involved in educational initiatives, especially in STEM, as we are fundamentally a company of engineers. Partnering with LSI aligns perfectly with our Mission T program, which promotes STEM education.”

Otunla highlighted that IHS Nigeria, which started operations in 2001, has invested in technology innovation hubs, such as those in Alimosho, Lagos State, and Ogbomosho, Oyo State, to support education and technology advancement across Nigeria.

Also speaking at the event, Kaci Heinz, LSI’s Executive Director, disclosed that over 200 teachers from public schools across Nigeria applied for the program, with only ten ultimately selected to join an additional ten teachers from Brazil for the year-long training.

“By connecting STEM education with the captivating subject of space, we aim to inspire both educators and students while simultaneously enhancing STEM learning experiences,” explained Heinz.

“These teachers are expected to return and impart the knowledge gained to their students, nurturing a new generation of interest in STEM education.”

Beneficiaries’ Share Experiences

The ten beneficiaries, who shared their experiences at the event, expressed immense gratitude for the opportunity provided by IHS Nigeria and LSI.

Maranatha Haa, a Chemistry teacher from Federal Government College, Jos, noted, “This program has introduced me to the exciting possibilities of space science and the importance of collaboration across borders. I’m eager to share what I’ve learned with my students and fellow educators.”

Mr. Olayinka Adeoshun, from Ilupeju Junior Grammar School, Lagos, shared, “The training has exposed me to what I could never have imagined in space science. My students are now more motivated than ever in space technology education. We’ve even established a virtual knowledge exchange program with the Space Institute in Houston.”

Blessing Akila, from ECWA Secondary School, Makurdi, expressed her excitement about the program’s impact on her teaching approach. “One of the subjects we were taught was Geometric and Space, which has helped simplify mathematics for my students, many of whom previously had a phobia for the subject. I want to thank IHS and LSI for this life-changing opportunity.”

Other beneficiaries who shared their experiences included Oluwabanke Adewusi from Itire Community Senior Secondary School, Lagos; Joshua James from Greenpath Preparatory School, Abuja; Soji Megbowon from Ifesowapo Aboru Senior Secondary School, Lagos; Ngobiri Abraham from Federal Government College, Enugu; Wahab Abubakar from Sango Senior Secondary School, Ilorin; Kayode Adewale from Odu’a Comprehensive High School, Ijebu Ode; and Rashidat Ademosu from Eva Adelaja Girls Junior Secondary School, Lagos.


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