Celebrate Women’s Month by exploring how women in Sub-Saharan Africa are transforming e-commerce.
As we celebrate Women’s Month in South Africa, it is an opportune time to reflect on the evolving role of women in the digital economy, particularly in the realm of e-commerce. E-commerce is increasingly becoming a vital part of global economies, and Africa is no exception. With the rapid adoption of mobile technology, the internet, and digital payments, women across the region are gradually gaining more access to the digital marketplace. This blog post explores the e-commerce habits of women in Sub-Saharan Africa, with a specific focus on South Africa. We will delve into the role of Payment Service Providers (PSPs) and alternative payment methods in facilitating the inclusion of women in e-commerce, highlighting the progress and challenges in this arena as we honor the contributions of women this month.
E-commerce in Sub-Saharan Africa has been on a steady rise, driven by several factors including the increasing penetration of mobile devices, internet access, and the availability of digital payment solutions. While the region has historically been seen as a challenging market due to infrastructural and logistical barriers, the tide is changing. E-commerce platforms are springing up across the region, and international companies are beginning to pay attention to the potential of this market.
Women, who constitute a significant portion of the population, are an essential demographic in the growth of e-commerce in Sub-Saharan Africa. However, they face unique challenges and barriers that need to be addressed to fully harness their potential as e-commerce consumers and entrepreneurs.
The e-commerce market in Sub-Saharan Africa is characterized by significant diversity, with countries at different stages of digital transformation. While South Africa, Nigeria, and Kenya are leading the way, other countries are gradually catching up. The region’s e-commerce growth is driven by a young and increasingly digital-savvy population, the proliferation of mobile phones, and growing internet penetration.
However, the e-commerce market in Sub-Saharan Africa is still in its nascent stage compared to other regions. It faces challenges such as poor infrastructure, low internet penetration in some areas, and limited access to digital payment solutions. Despite these challenges, the region’s e-commerce sector is expected to grow significantly in the coming years, with women playing a crucial role in this growth.
Women in Sub-Saharan Africa are increasingly becoming active participants in e-commerce, both as consumers and entrepreneurs. As consumers, women are leveraging e-commerce platforms to access a wider range of products and services, which may not be readily available in their local markets. This is particularly important in rural areas where access to goods and services can be limited. E-commerce provides these women with an opportunity to shop for products that would otherwise be out of their reach.
According to Statista, in 2024, approximately 13.9 percent of South Africa’s adult population made an online purchase using a mobile phone or the internet, with men making slightly more purchases than women (14.1 percent vs. 13.7 percent).
As entrepreneurs, women are using e-commerce platforms to reach broader markets and grow their businesses. The low entry barriers associated with online businesses make e-commerce an attractive option for women, particularly those who may not have the capital to start a traditional brick-and-mortar business. By selling online, these women can access a broader customer base, both locally and internationally.
Women are pivotal to the success of the e-commerce sector, particularly in Sub-Saharan Africa, where they drive an estimated 80% of household buying decisions. This significant influence over household spending means that their inclusion in the digital economy is not just a matter of equity but also a substantial business opportunity. By integrating more women into e-commerce, businesses can tap into this vast purchasing power, ensuring that their products and services align with the needs and preferences of a key demographic. Moreover, as women increasingly engage in online shopping and entrepreneurial activities, they contribute to the expansion and diversification of the e-commerce market, fostering innovation and economic growth across the region. Therefore, prioritizing the inclusion of women in e-commerce is crucial for unlocking the full potential of this burgeoning sector.
Despite the growing influence of women in e-commerce, there are still several barriers that hinder their full participation. These barriers include:
Limited Access to the Internet and Digital Devices: In many parts of Sub-Saharan Africa, internet access is still limited, particularly in rural areas. Women are more likely to be affected by this digital divide, as they often have less access to digital devices and the internet compared to men. This limits their ability to engage in e-commerce activities.
Financial Exclusion: Many women in Sub-Saharan Africa are financially excluded, with limited access to formal banking services. This makes it difficult for them to participate in e-commerce, as digital payments are often required for online transactions.
Digital Literacy: Digital literacy is another significant barrier. Many women lack the necessary skills to navigate e-commerce platforms and engage in online transactions. This is particularly true for older women and those in rural areas.
Cultural and Social Norms: Cultural and social norms can also be a barrier to women’s participation in e-commerce. In some communities, women may face restrictions on their mobility or on their ability to engage in economic activities outside the home. These norms can limit their ability to participate in e-commerce as both consumers and entrepreneurs.
South Africa is one of the leading e-commerce markets in Sub-Saharan Africa, with a relatively well-developed digital infrastructure and a growing online shopping culture. Women in South Africa are increasingly engaging in e-commerce, driven by the convenience and accessibility of online shopping.
Mobile Shopping: Mobile shopping is a significant trend among South African women. With high smartphone penetration and affordable data plans, many women prefer to shop using their mobile devices. This trend is particularly pronounced among younger women who are more digitally savvy.
Fashion and Beauty: Fashion and beauty products are among the most popular categories for online shopping among South African women. Many women are drawn to e-commerce platforms that offer a wide range of fashion and beauty products, often at competitive prices. This trend is fueled by the influence of social media, where women are exposed to new fashion and beauty trends.
Social Commerce: Social commerce, or shopping through social media platforms, is another growing trend among South African women. Platforms like Instagram and Facebook have become popular channels for women to discover and purchase products. Many women are also using these platforms to sell their products, leveraging the power of social networks to reach potential customers.
Online Grocery Shopping: Online grocery shopping is becoming increasingly popular among South African women, particularly in urban areas. The convenience of having groceries delivered to their doorstep is a significant draw, especially for working women and those with busy schedules.
While South African women are actively participating in e-commerce, they still face some barriers:
High Data Costs: Despite the availability of mobile shopping, high data costs remain a barrier for many women, particularly those from lower-income groups. This limits their ability to shop online frequently.
Payment Challenges: While South Africa has a relatively well-developed banking system, many women still face challenges when it comes to making online payments. This is particularly true for women who are unbanked or underbanked.
Trust Issues: Trust is another significant barrier. Many women are hesitant to shop online due to concerns about the security of their personal and financial information. This is compounded by the fear of receiving counterfeit or substandard products.
Payment Service Providers (PSPs) and alternative payment methods play a crucial role in facilitating the inclusion of women in e-commerce in Sub-Saharan Africa and South Africa. By providing accessible and secure payment solutions, PSPs are helping to overcome some of the barriers that women face in participating in e-commerce.
PSPs are companies that provide online payment solutions, enabling businesses to accept payments from customers through various channels. In the context of e-commerce, PSPs are essential in facilitating transactions between buyers and sellers. For women in Sub-Saharan Africa, PSPs can play a significant role in overcoming the financial exclusion that many of them face.
Mobile Money: Mobile money is one of the most important alternative payment methods in Sub-Saharan Africa. It allows users to make payments and transfer money using their mobile phones, without the need for a traditional bank account. For many women, mobile money is a crucial tool for participating in e-commerce. It enables them to make payments for online purchases, as well as to receive payments for goods and services they sell online.
Digital Wallets: Digital wallets are another important payment solution for women in Sub-Saharan Africa. They allow users to store money digitally and make payments for online transactions. Digital wallets are particularly useful for women who may not have access to traditional banking services. They offer a secure and convenient way to engage in e-commerce activities.
Buy Now, Pay Later (BNPL): BNPL is a growing trend in e-commerce, allowing customers to purchase products and pay for them in installments. For women who may have limited access to credit, BNPL offers a way to access products that they may not be able to afford upfront. This payment method is becoming increasingly popular in South Africa, where several e-commerce platforms now offer BNPL options.
Bank Transfer and Card Payments: While traditional payment methods such as bank transfers and card payments are still widely used in South Africa, they are not always accessible to all women. PSPs that offer more inclusive payment solutions can help bridge this gap, ensuring that more women can participate in e-commerce.
PSPs have a critical role to play in enhancing financial inclusion for women in Sub-Saharan Africa. By offering accessible and secure payment solutions, PSPs can help to overcome some of the barriers that women face in participating in e-commerce. This includes providing payment solutions that are tailored to the needs of women, such as mobile money and digital wallets.
In South Africa, PSPs are increasingly recognizing the importance of financial inclusion and are developing products and services that cater to the needs of underserved populations, including women. For example, some PSPs are partnering with mobile network operators to offer mobile money services that reach women in rural and remote areas. Others are developing digital wallet solutions that are specifically designed to meet the needs of women entrepreneurs.
While PSPs and alternative payment methods are essential in facilitating women’s inclusion in e-commerce, government and industry also have a crucial role to play. This includes creating an enabling environment for e-commerce to thrive and ensuring that women have access to the necessary resources and support.
Policy and Regulation: Governments in Sub-Saharan Africa need to implement policies and regulations that promote financial inclusion and support the growth of e-commerce. This includes creating a regulatory framework that encourages innovation in the payments sector and ensures that women have access to secure and affordable payment solutions.
Digital Literacy Programs: Digital literacy is essential for women to fully participate in e-commerce. Governments and industry players should invest in digital literacy programs that equip women with the skills they need to navigate e-commerce platforms and engage in online transactions. These programs should be tailored to the needs of different groups of women, including those in rural areas and older women.
Infrastructure Development: Infrastructure is a key enabler of e-commerce. Governments need to invest in infrastructure development, including expanding internet access and improving logistics networks. This will help to ensure that more women can access e-commerce platforms and participate in the digital economy.
Public-Private Partnerships: Public-private partnerships can play a significant role in promoting women’s inclusion in e-commerce. By working together, governments, PSPs, and e-commerce platforms can develop solutions that address the specific needs of women and ensure that they are not left behind in the digital economy.
As we observe Women’s Month in South Africa, it is clear that the e-commerce landscape in Sub-Saharan Africa is evolving rapidly, with women playing an increasingly important role in this growth. However, there are still significant barriers that need to be addressed to fully harness the potential of women as e-commerce consumers and entrepreneurs. Payment Service Providers (PSPs) and alternative payment methods are crucial in overcoming these barriers by providing accessible and secure payment solutions that enhance financial inclusion for women.
In South Africa, the e-commerce market is more developed, but women still face challenges such as high data costs, payment difficulties, and trust issues. By addressing these challenges and creating an enabling environment for e-commerce, governments, industry players, and PSPs can help ensure that more women can participate in and benefit from the digital economy.
As we celebrate the achievements of women this month, it is essential to ensure that their contributions to the digital economy are recognized and supported. By leveraging the power of digital technology and innovative payment solutions, we can create a more inclusive e-commerce landscape that empowers women and drives economic growth across the region, paving the way for a more equitable future.