M-Commerce in Sub-Saharan Africa: Making Sense of a Growing Mobile Business,’ a new Telecom Insider Report by Pyramid Research, provides an overview of the growing m-commerce sector in Sub-Saharan Africa. It looks at two types of transactions: those completed on a mobile phone and purchases of goods or services using mobile money. To assess the market in more detail, the report uses a four-part framework that consists of product identification, purchase and payment, delivery and post-purchase feedback. These are also the four steps in a consumer’s purchase transaction on a mobile phone using mobile money.
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The section on product identification examines the way companies in Africa can target consumers. The second part looks at the existing mobile payment infrastructure, specifically the services offered in Kenya and Tanzania. The third section studies the high transportation costs and poor infrastructure in the region, which play an important part in determining where companies choose to set up their operations; it looks especially at the way Jumia has made chosen certain countries to locate in. The fourth section looks at the existing relationship between customers and companies and how it may change. Finally, the report summarizes the key findings of the research and provides the reader with key insights regarding future market developments. Most of the information in this report was gained through primary research with key market players.
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Pyramid Research expects mobile-money transactions to continue to become more common across the continent.
We believe the key to growth will be an increase in the interoperability of payment systems offered by providers. The combination of mobile money and mobile commerce has the potential to dramatically alter the way commercial transactions are completed in Africa.
Improvements in mobile connectivity are increasing the number of potential shoppers online across Sub-Saharan Africa, but the mobile-money infrastructure remains a constraint for the industry.
Although the term m-commerce is widely used in both literature and news media, understanding of this industry is still lagging. This report provides an overview of the growing m-commerce market in Sub-Saharan Africa by looking at four aspects of mobile transactions.
This report first outlines the current structure of the m-commerce industry in Sub-Saharan Africa. It looks at two types of m-commerce transactions, distinguishing between transactions completed on a mobile phone and purchases of goods or services using mobile money.
The report examines the industry growing around both of these types of transactions. In order to assess the various aspects of the market, we use a four-step framework consisting of product identification, purchase and payment, delivery and post-purchase feedback.
The section on product identification looks at the way companies in Africa are able to target consumers based on a set of criteria revealed through the online content viewed on their mobile phones.
The second part of the report investigates the existing mobile-payment infrastructures in Kenya and Tanzania. It highlights the differences between the two systems and the potential for a payment platform targeting enterprises.
The infrastructure deficit, both domestic and international, is a key cost to African companies looking to set up an m-commerce platform. The third section explores why companies have located in certain countries.
The report also focuses on the interaction between companies and consumers, providing an understanding of the existing and potential relationships between the two.
Finally, we summarize the key findings of the report and highlight some of the issues that need to be overcome in order for the industry to grow.
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Reasons To Buy
This Insider Report provides a comprehensive examination of the value chain and some of the key companies involved in the growth of the mobile-commerce industry in Sub-Saharan Africa.
The report looks at some of the existing m-commerce infrastructure in Africa as well as the industry’s potential for expansion.
The report looks at a number of the competitors in the sector and assesses their business models and ambitions.
The report discusses existing opportunities in the m-commerce market in region, providing a number of actionable recommendations for market participants.
The report gives key recommendations on how companies should act if they are interested in this market.