With the growth of mobile money across Africa, a new trend – digital currency – is also gaining popularity with Nigeria, South Africa and Kenya identified as the front runners in rolling out and adopting online retail sales.
Experts at Frost and Sullivan have predicted that there will be as many as 12 million Bitcoin wallets across the continent in less than 10 years.
“Online retail will grow significantly in the next five years and will account for nearly 7% of total retail sales in Africa in 2025. Nigeria, South Africa, Egypt, and Kenya are emerging as the top markets for online retailing” in Africa.
“Africa will have tremendous market potential for firms that are operating in the digital currency space. By the end of 2015, there will be 12 million Bitcoin wallets in Africa and nearly one-third of Kenyans will be using a Bitcoin wallet.”
Rapid urbanisation, mobility, infrastructure, natural resources, telecommunications investments and inter-regional trade will help African economies boost overall gross domestic product to as much as $4.5 trillion by 2025, said Frost and Sullivan in a new release titled, Mega Trends in Africa.
The release adds that trade volume in the region will have grown significantly by 2015, with East Africa seen as having the highest growth rates. The massive growth in East Africa will largely be driven by “improved transportation infrastructure”.