eCommerce Software - Eastern Africa

The Eastern Africa eCommerce Software market is expected to witness significant growth in the coming years.
According to projections, the revenue in this market is set to reach US$19.93m by 2025.
Furthermore, it is anticipated that the market will experience a steady annual growth rate (CAGR 2025-2029) of 9.13%, resulting in a market volume of US$28.27m by 2029.
In terms of the average Spend per Employee, it is estimated to reach US$0.09 in 2025, indicating the potential for increased investment in this sector.
However, it is important to note that the revenue generated in Eastern Africa is relatively smaller compared to global figures.
The United States, for instance, is projected to generate a substantial revenue of US$4.54bn in 2025.
These numbers highlight the immense potential of the eCommerce Software market in Eastern Africa, but also indicate the need for further growth and development in order to compete on a global scale.
Eastern Africa is experiencing a surge in the adoption of eCommerce software, with local businesses leveraging technology to expand their online presence and reach a wider customer base.

Definition:

The eCommerce Software market covers a wide range of software applications that support organizations in managing their online sales channels. These solutions typically include features for managing product catalogs, automation of shopping carts, order management, inventory management, and handling order fulfillment.

Products in the eCommerce Software market are most commonly available in the forms of cloud-based software and subscription services.

Additional Information:

The eCommerce Software market comprises revenue and revenue growth as the key performance indicators. Only the revenues that are generated by primary vendors at the manufacturer price level either directly or through distribution channels (excluding value-added tax) are included and the revenues generated by resellers are excluded. Revenues are generated through both online and offline sales channels and include spending by enterprises (B2B) and governments (B2G).

Key players in this market include Shopify, Salesforce, SAP, and Adobe.

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eCommerce software, such as BigCommerce, Shopify, WooCommerce, Salesforce Commerce Cloud, and Volusion
Product management, such as Jira Software (Atlassian) and CollabNet VersionOne
User accounts management, such as Microsoft, Okta, and OneLogin
Order management, such as SAP Order Management, Microsoft Dynamics 365 Commerce, and NetSuite Order Management

Administrative Software, such as ADP, Gusto, Workday, and SAP
Office Software, such as Microsoft, Google, and Zoho

Software: market data & analysis

Eastern Africa, a region of diverse cultures, languages, and economies, is currently experiencing a surge in eCommerce software adoption.

Customer preferences: With a growing middle class and an increasing number of tech-savvy youth, consumers in Eastern Africa are more willing to shop online and adopt digital payment methods. Additionally, the COVID-19 pandemic has accelerated the shift towards eCommerce as more people prefer to shop from the safety of their homes.

Trends in the market: Kenya, Tanzania, and Uganda are the leading countries in eCommerce software adoption in Eastern Africa. In Kenya, the eCommerce market is dominated by Jumia and Kilimall, while in Tanzania, Jumia and ZoomTanzania are the leading players. Uganda's eCommerce market is led by Jumia, Kilimall, and Yoza. These platforms offer a wide range of products, from electronics to fashion, and have integrated mobile payment solutions to cater to the region's high mobile penetration rate.

Local special circumstances: One of the unique challenges facing the eCommerce market in Eastern Africa is the lack of a well-developed logistics infrastructure. Delivery of products can be a challenge due to poor road networks and inadequate addressing systems. However, eCommerce platforms have been able to overcome this by partnering with local logistics companies and leveraging mobile technology to provide delivery updates to customers.

Underlying macroeconomic factors: The growth of the eCommerce market in Eastern Africa is supported by the region's increasing internet penetration rate, which currently stands at 24%. Additionally, the region's GDP growth rate has been steady, with an average of 5% over the past decade. This has led to a growing middle class with disposable income to spend on eCommerce platforms. Furthermore, governments in the region have been implementing policies to support the growth of the digital economy, such as reducing taxes on digital transactions and investing in ICT infrastructure. In conclusion, the eCommerce software market in Eastern Africa is on an upward trajectory, driven by a growing middle class, increasing internet penetration, and supportive government policies. While challenges such as logistics remain, eCommerce platforms have been able to overcome these by partnering with local logistics companies and leveraging mobile technology. As the region continues to develop, the eCommerce market is expected to grow even further, providing opportunities for both local and international eCommerce players.

Data coverage:

The data encompasses B2B, B2G, and B2C enterprises. Figures are based on the allocation to the country where the money was spent at manufacturer price level (excluding VAT).

Modeling approach / Market size:

The segment size is determined through a top-down approach. We use financial statements such as annual reports, quarterly earnings, and expert opinions to analyze the markets. To estimate the segment size for each country individually, we use relevant key market indicators and data from country-specific industry associations such as GDP, level of digitization, GDP sector composition, and observed level of software piracy.

Forecasts:

We use a variety of forecasting techniques, for instance, advanced statistical methods, depending on the behavior of the relevant segment. The main drivers are the GDP and the level of digitization.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Technology market, in a PDF format.

Imagine a world without the apps you use daily, the games you enjoy, or the websites you rely on. Software development is the invisible hand behind this digital magic, transforming ideas into the tools that shape our lives. Software development is the process of creating, designing, deploying, and supporting software. It includes all the computer activities between the software's conception and final manifestation.

These activities are planned and put into stages in a logical order, a process known as the software development life cycle (SDLC) or software development. The SDLC often includes six stages: requirement analysis, design, development, testing, implementation, documentation, and evolution. Programming languages such as JavaScript and C++ are used to create software, with JavaScript being the most popular programming language in 2023 and used by roughly 65 percent of software developers.

eCommerce Software - Eastern Africa

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Key Players

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