The rise of the internet, widespread mobile phone penetration, and the development of online payment solutions are gradually transforming African consumer habits and have led to the flourishing of e-commerce on the continent. This is fertile ground for the development of the sector, which is attracting more and more players and generating more sales on the continent. However, the e-commerce ecosystem, which is poised to take off, faces many obstacles. Faced with logistical, technological, and structural challenges, some of the most prominent players in e-commerce are ending their African adventures.
Following in the footsteps of giants such as Cdiscount and Africashop, French startup Afrimarket, which operates in French-speaking Africa, has announced that it is filing for bankruptcy. Founded by Rania Belkhaia and Jérémy Soss, Afrimarket failed in its latest fundraising attempt due to cautious investors. More recently, the Prosuma group's distribution platform, Yatoo.ci, withdrew from the market. Launched in 2016 by Doungnan Coulibaly, the platform had managed to stand out in the Ivorian market thanks to its two-hour express delivery service in the municipalities of Abidjan and its 24-hour customer service. However, the Prosuma group's shareholders did not wish to repeat their investments.
Why are these players giving up? Are the reasons related to the business model? The ecosystem? Investors who are still too hesitant? A lack of knowledge about the market? Many lament the market's immaturity, low internet penetration, and the operational complexities and financial issues that capital-intensive startups face.
Those who are giving up on development on the continent are nevertheless leaving the field open to their competitor Jumia, an African "unicorn" that has successfully spearheaded a breakthrough in e-commerce in West Africa. A subsidiary of the Rocket Internet Group, Jumia successfully listed on the New York Stock Exchange in April. This crucial move enabled the company to raise nearly $200 million to accelerate its development.
Although there are reasons to remain optimistic, African e-commerce has not yet fulfilled its full potential. For the various players, both old and new, the time has come for strategic reflection on the future of this sector in an African context…
Read also: Interview with Aurèle Simo, founder of the Toovendi.com platform