The Zimbabwe Business Ideas and Network is the top African business forum with a strong presence in India. We have more than 200 members from India who are part of us, some are on our Whatsapp platforms and are always sharing business ideas from India and looking for business partners in Africa. We are slowly establishing ourselves as a business gateway to Africa from India!
So today is Africa Day and is a National Holiday for many African countries as we celebrate the formation of the African Union (AU). Inorder to promote business the 2 continents of Africa and India we have decided to bring you information of e-commerce opportunities in South Africa and this information is primarily targeted at Indian nationals. The information is just basic statistics but can guide you in your analysis of the needs and gaps in this sector that provide opportunities for investment.
Statistics
Capital: Pretoria Population: 51.7 million (2011)
GDP (USD): 350.63 billion (2013)
Currency: South African rand (ZAR) Languages: English (business), others
Market Entry
Generally business to business (B2B) customers are also business to consumer customers, so relationships are generally the same. Both types of customers have become accustomed to performing consumer product research online. As a result, both are using either consumer websites or B2B versions of consumer websites to purchase products and services for their companies or in their capacity as individuals
Popular E-Commerce Sites
• takealot.com
• amazon.com
• bidorbuy.co.za
• groupon.co.za
• ebay.com
• game.co.za
• computicket.com
• mrp.com
• zando.co.za
• picknpay.co.za
• clicks.co.za
• edgars.co.za
• spar.co.za
• woolworths.co.za
Digital Advertising
Studies have shown the effectiveness of digital ads that appear on mobile devices. South Africa currently boasts a mobile penetration rate of 135 percent, and as data prices and smartphone prices continue to drop, this platform will be at the forefront of digital advertising. Other traditional methods include the use of company banners that appear on popular social media, news, and e-commerce sites.
Current Market Trends
• 45 percent of online shoppers are in Gauteng, one of South Africa’s nine provinces.
• 9.23 percent ofshoppers have household income of over ZAR 70,000 per month
• 73.7 percent of shoppers use e-commerce to make payments, pay utility bills, and transfer money at least once a week.
Online Payment
Credit cards, cash cards, bank transfers, and PayPal are all used in South Africa. Special online shopping credit cards are the most frequently used.
Social Media
• Facebook
• Twitter
• Tumblr
• LinkedIn
• Pinterest
• Instagram
• Flickr
• Google+
• Badoo
Cross-Border E-Commerce
The South African consumer market tends to trust international retailers more than local business and uses them much more frequently.
Mobile E–Commerce
38.51 percent of South African consumers use their mobiles for online purchases.
Current Demand
Services
Books, airline tickets, hotel reservations, and event tickets are the service-related items most often purchased online.
Regulations and Initiatives
Commerce is regulated in South Africa by the Consumer Affairs Committee.The committee sets out basic guidelines that require that suppliers (not users) of “cryptography” services or products register their names and addresses and the names of their products with a brief description in a register maintained by the Department of Communications. Unless the (local or foreign) supplier has registered, it cannot provide services or products in South Africa.
