Increased smartphone penetration in Africa emerged as a powerful force, driving significant growth in online trading.
Over the past decade, the increasing prevalence of affordable smartphones and increased internet connectivity has led to a re-conceptualization of commerce and opened doors for thousands of young Africans to participate in the global and regional digital economy.
The percentage of Africans with smartphones is expected to increase steadily, as devices become more budget-friendly and infrastructure improves.
According to GSMA, by the end of 2023, nearly 44% of the population in Sub-Saharan Africa subscribed to a mobile service, amounting to 527 million subscribers. Mobile internet penetration has been growing, reaching 27% in the region by the end of 2023.
Countries like South Africa, Kenya, and Nigeria are leading in the adoption of mobile internet technology, this technology is beneficial for online platforms that facilitate trading. With smartphones now common in rural areas, thousands of people are using online marketplaces, platforms for e-commerce, and apps that facilitate trading, applications that were previously unattainable.
One key area that has seen significant growth is e-commerce. Platforms such as Jumia, Konga, among others, are leveraging mobile apps to reach consumers, enabling seamless access to a wide array of goods and services. From fashion and electronics to groceries and healthcare products, online trading platforms are reshaping how Africans shop and transact.
Other platforms that facilitate financial transactions and investment are also growing. Mobile-based apps encourage Africans to participate in financial transactions, including the purchase of stocks, cryptocurrencies, and other assets. These apps have user-friendly interfaces, educational resources, and local payment options that allow new investors to explore the global market.
“Thanks to mobile technology, consumers in African countries can now seamlessly integrate financial services with their day-to-day. Trading apps like Exness Trade facilitate access to financial opportunities right on tap. From currencies to cryptocurrencies, and stocks to commodities, traders can discover a whole range of asset classes and instruments at a low cost and with extreme convenience”, Terence Hove, Financial Markets Strategist Consultant at Exness, highlighted.
Social commerce is another area that is benefiting from the adoption of smartphones. Many African entrepreneurs utilize social media like Instagram, Facebook, and WhatsApp to promote and sell products to their consumers directly. This method, which is often informal, enables companies to bypass traditional retail structures and directly interact with their consumers, which further promotes the online economy.
The increase in online trading via smartphones is however not without problems. Limited internet access in rural areas with limited infrastructure, high costs of data, and cybersecurity concerns still constitute a significant obstacle. However, ongoing spending on digital infrastructure, government initiatives promoting digital access, and innovative payment methods like offline payment systems are surmounting these obstacles.
Ultimately, the increasing popularity of smartphones in Africa is causing a revolution in online commerce and trading, thousands of millions of people are being enabled by this to access markets and financial resources.
As the infrastructure continues to evolve and mobile devices become more common, the continent is expected to have a larger increase in digital commerce, which will solidify its position in the global economy.
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