A string of startups aimed at the Nigerian market have attracted huge VC backing, and many believe their success could spur on the region.
Due to a decade of rapid economic growth in Africa, consumer spending is estimated to exceed $1 trillion annually by 2020–$400 billion of it already occurring in Nigeria, according to McKinsey’s Global Institute. Meeting the demands of these newly-empowered shoppers, whose wants are outpacing Africa’s traditional marketplaces, will generate some $75 billion in ecommerce revenue by 2025, McKinsey estimates. Along with Africa’s greater discretionary spending, its populations are urbanizing, IT infrastructure is improving, and the continent’s smartphone penetration is rising. “The energy is already out there,” said Sim Shagaya, CEO of Konga, which was founded in 2012. “Africa does not lack an abundance of people to buy things, sell things, or move them around. What Africa lacks is a 21st century operating system to make it all work.”