Online retail sales in South Africa are expected to exceed $7.4 billion by the end of this year, representing 10% of the country’s total retail sales. The forecast is driven by growing demand for groceries, on-demand fashion, and the entry of global competitors such as Amazon, according to a study released on Thursday, September 11.
The study was conducted by World Wide Worx (a South African technology and business research company), in partnership with Mastercard (global payments company), Peach Payments (South African digital payments platform), and Ask Afrika (Pretoria-based market research firm). In 2024, e-commerce in the country grew by approximately 35%, reaching an estimated value of $54.9 billion, which accounts for about 8% of total retail sales.
This growth is attributed to increasing demand for essential and convenient goods, particularly food and apparel. The entry of international platforms has heightened competition, prompting local retailers to improve service quality and invest in digital innovation.
“The arrival of giants like Amazon is boosting consumer confidence in e-commerce,” the study’s authors noted. This confidence is pushing local operators to provide faster deliveries and more secure payments, meeting the evolving demands of digital consumers.
The report also highlights the impact of the COVID-19 pandemic on accelerating online consumption. Many consumers who made their first purchases during lockdowns have continued this habit, creating a new market segment that continues to grow steadily. Analysts also stress the importance of secure payment technologies and collaboration between digital platforms and traditional businesses for the sector’s maturation. “We are witnessing a structural transformation of retail, where digital is no longer optional but indispensable,” the study concludes.
With more efficient logistics infrastructure and an increasingly connected population, South African online retail is poised to become a key pillar of national commerce. Forecasts indicate that the sector’s growth will remain strong in the coming years.
Source: Reuters
