Africa’s flourishing market for online goods and services is on track to surpass 500 million consumers by 2025.

This is according to a report by Nikulipe, a global fintech company that focuses on local payment methods in fast-growing and emerging markets.

The company forecasts that by the end of 2025, nearly half of Africa's population is expected to participate in online commerce, a significant leap from just 13% in 2017.

The expected growth of Africa’s active internet users, from 570 million at the end of 2022 to almost 900 million by 2028, will largely be driven by increased smartphone adoption, which is projected to approach the 92% global average in most Sub-Saharan countries by 2030.

Mobile money

A key finding of Nikulipe's report is the transformative role mobile money plays in Africa's economy.

With the rise in mobile adoption across the continent, mobile money has become an indispensable financial tool, particularly for Africa's unbanked populations.

“Mobile money was a key driver for financial inclusion in Sub-Saharan Africa, a region where less than 10 percent of the population has access to credit cards and only 33 percent have bank accounts,” explained Frank Breuss, Nikulipe's co-founder and CEO.

He noted that more than 560 million people in Africa pay via their phone, with the number predicted to reach 850 million by 2028.

“This is a huge and mostly untapped opportunity for global merchants,” Breuss said.

The report highlights that mobile payment method preferences vary across African countries.

In Uganda, for example, MTN Mobile Money and Airtel Money are the dominant players, while in neighbouring Kenya, M-Pesa leads the market.