Online business

Best African Countries to Start an Online Business

These are very positive indicators for Africa’s rather nascent e-commerce ecosystem. Also fascinating is the fact that the growth trajectory is expected to continue, due to the following factors, as Statista points out:

  1. Africa’s young, tech-savvy population
  2. The rapidly growing internet penetration in Africa and
  3. The availability of widespread digital payment startups enabling e-commerce on the continent.

Using data from UNCTAD’s Business-to-Consumer (B2C) e-commerce index 2020, Business Insider Africa presents the top 10 African countries to start an e-commerce business.

According to the report, Mauritius remains by far the best prepared country for e-commerce in Sub-Saharan Africa.

The index scores 152 countries on their readiness for online shopping, worth an estimated $4.4 trillion worldwide in 2018, up 7% from the previous year. Countries are scored on access to secure Internet servers, reliability of postal services and infrastructure, and share of their population that uses the Internet and has an account with a financial institution or bank. a mobile money service provider.

Based on the survey, Mauritius retained the highest score in sub-Saharan Africa. In contrast, the four largest increases in index scores were recorded in developing countries – Algeria, Brazil, Ghana and the Lao People’s Democratic Republic. Their scores have increased by at least five points, largely due to significant improvements in postal reliability.

“To facilitate more inclusive e-commerce, African countries would benefit from catching up in all policy areas. Compared to the 2019 index, there is no overall change in the value of the index,” the report notes.

Below is the list of top 10 African countries to start an online business.

  1. Mauritius – 58.4
  2. South Africa – 56.5
  3. Tunisia – 54.6
  4. Algeria – 52.2
  5. Ghana- 51.9
  6. Libya – 49.7
  7. Kenya – 49.0
  8. Nigeria – 46.2
  9. Morocco – 44.8
  10. Senegal – 44.1