Thread by @pesa_africa

E-commerce in Africa is growing & evolving, however, it’s taking place in different forms & channels; a significant amount of transactions are taking place 'informally' on digital channels such as Instagram, Whatsapp, Facebook, Websites, SMS, Voice calls, etc. Via @AfridigestHQ

“I believe e-commerce is just in its first iteration and I, therefore, hold the view that the question’s assumptions are mistaken. E-commerce is inevitable but its characteristics in Africa will look quite different than that of the US or Asia.”

The lack of e-commerce penetration in Africa is partly due to how it is defined. WhatsApp, Twitter, and Facebook (including Instagram) sales allow for the more accessible informal market to flourish. This is where many items in Africa are bought and sold

I think we first need to define what exactly e-commerce is, especially in the African context. A lot of sales are happening online but they might be end-to-end. Many people initiate the purchase process online and close the transaction offline (collection and payment).

Source is

Why has B2C e-commerce not yet scaled in African markets ? afridigest.substack.com/p/afridigest-t…

I picked the answers that resonated with my experience

There was a consistent theme in the answers i picked

- informal
- offline / online
- context (African context)
- social/trust networks
- hyper local

How Digital Platforms are Shaping Africa’s Informal Economy

kioneki.com/2018/12/13/why…

These themes are some of the fundamental building blocks of Africa’s digital economy - the offline informal economy. A reminder to founders/builders/teams and startups, this is what you are up against. There is no circumventing the nature of the informal economy

Especially now, post COVID 19 + economic depression, a time that resembles the post SAP 90s, notice how informal economy employment grew.

My thesis is the same is happening now. People are going back to basics as money flows tighten

https://twitter.com/pesa_africa/status/1333486638295617537?s=21

I was fortunate to work under Niti Bhan as my boss and mentor from 2013 - 2019. Niti pretty much covered the fundamentals of Africa’s informal prepaid economy (and global developing countries/emerging markets)

Its time to revisit her work

The Hidden Opportunities Of the Informal Economy ted.com/talks/niti_bha…

Co-worked this project on informal cross border trade (relevant for cross border fintech and commerce companies)

Borderland Biashara: Mapping the cross border, national and regional trade in the East African informal economy tralac.org/news/article/9…

This treasure trove on all things informal economy for product research, business strategy & innovation is the foundation of my product experience

This will get you in the mind of informal economy personas

Search thro archives and key words

Niti’s blog nitibhan.com

Africa’s emerging digital, social, mobile economy is neither formal nor informal but a bridge in between nitibhan.com/2019/01/07/afr…

/End