According to data analyzed by EBANX, a global technology company specializing in payment services for rising economies, Africa is set to witness explosive growth in consumer spending over the next decade. As the global landscape of digital commerce continues to evolve, Africa emerges as one of the fastest-growing regions, with countries like Egypt and Ethiopia leading the way in this transformation.
Africa’s Surge in Consumer Spending
Africa’s consumer markets are gaining momentum, with countries like Egypt projected to see a 167% increase in consumer spending, while Ethiopia is expected to grow by an astounding 429%. Other nations such as Kenya (115%), Morocco (107%), Ghana (106%), and South Africa (42%) are also on track for significant growth. These figures, presented at the summit by EBANX, highlight Africa’s untapped potential in the global digital economy.
“Africa is often overlooked when discussing the future of consumption, but the data shows it is a region of immense growth,” said Wiza Jalakasi, Director of Africa Market Development at EBANX. In 2024 alone, Africa is expected to add 10 million new consumers, second only to Asia. As Jalakasi noted, “Africa is becoming the next frontier for digital commerce.”
Rising Markets: Africa, India, and Latin America
EBANX’s summit also highlighted other regions experiencing rapid growth in consumer spending. India, for instance, is poised to see a 198% increase, reaching a staggering $5.4 trillion by 2034, making it the third-largest consumer market after the U.S. and China. Latin America, led by Brazil (62%) and Mexico (54%), is also showing significant progress, with consumer spending expected to exceed $2 trillion over the next decade.
“This growth is closely tied to the digitalization of economies and payment innovations,” said Rashmi Satpute, Country Director of India at EBANX. As digital commerce expands, emerging markets are catching the attention of global businesses. According to EBANX’s 2024 Beyond Borders report, digital commerce in these regions will grow sixfold between 2017 and 2027, with an annual growth rate of 20%, outperforming developed countries by 7 percentage points.
Africa’s Digital Payments Revolution
One of the most striking trends emerging from the summit is how digital payments are reshaping commerce in Africa. Unlike India and Latin America, where digital commerce drives digital payments, Africa’s transformation is being fueled by digital payments driving commerce. As Juliana Etcheverry, Director of Country Growth at EBANX, observed, the unique context of each market plays a role in shaping its digital economy.
Mobile money, a financial service that allows users to make payments through mobile phones without needing a bank account or internet connection, has been a game changer in Africa. Seventeen years after its introduction, mobile money accounts for nearly half of Kenya’s digital commerce market, amounting to $2.3 billion. By 2025, mobile money and other Alternative Payment Methods (APMs) are expected to account for 63% of African digital commerce.
“Despite these advancements, challenges remain, such as market fragmentation and a lack of interoperability,” Jalakasi noted. Strategic partnerships between fintechs, governments, and global businesses are crucial to overcoming these hurdles and connecting Africa with the rest of the world.
Global Comparisons and Future Payment Trends
As Africa continues its rise, parallels can be drawn with other regions. In India, the instant payment system UPI dominates online purchases, while Brazil’s instant payment system Pix is expected to surpass credit cards by 2025. Both systems are driving financial inclusion by offering seamless, low-cost payment options to millions of unbanked consumers.
“Incorporating APMs is about more than just providing payment options; it’s about enabling financial inclusion,” said Etcheverry. EBANX has seen this firsthand in Brazil, where companies accepting Pix experienced a 25% increase in clients and a 16% boost in revenue. Similar trends are expected across Africa as mobile money and other payment innovations gain traction.
Hybrid payment methods, combining APMs with traditional cards, are also gaining popularity in markets like India, where credit cards are being integrated with UPI. This trend highlights the creativity and innovation in emerging markets, where consumers are finding new ways to engage with digital commerce. “This is financial inclusion in action,” said Jalakasi. “It’s about giving people access, no matter their financial background.”
The Path Forward: EBANX Payments Summit
The EBANX Payments Summit in Napa Valley is just one chapter in a series of events exploring the future of digital commerce in rising markets. The summit brings together industry leaders from global companies such as Stripe, Canva, Santander Brasil, and Nubank to discuss the latest trends and innovations. Upcoming chapters of the summit will take place in Bangkok, Thailand, and SĂŁo Paulo, Brazil, further advancing the conversation around payments and the digital economy in emerging markets.
As Africa and other rising markets continue to evolve, the future of digital commerce looks promising. With triple-digit growth in consumer spending and innovative payment methods like mobile money leading the charge, Africa is well-positioned to become a major player in the global digital economy. EBANX’s insights, shared at the Napa Valley Payments Summit, underscore the importance of strategic partnerships, financial inclusion, and payment innovation in shaping the next decade of global commerce.
