10 Nov 2025

EFSA report finds South Africa on the brink of exponential opportunity to drive inclusive growth through ecommerce


Key highlights

  • EFSA research shows that South Africa’s ecommerce maturity outpaces emerging markets such as India, Brazil, Kenya, and Nigeria — the next step is focused expansion and enablement for micro, small and medium enterprises.  Ecommerce in South Africa has already surged from 1% to nearly 10% of retail sales in just five years.1
  • A R900 billion market lies untapped in South Africa’s townships. Focused investment in township ecommerce can unlock inclusive growth, spur local industrialisation, and boost national competitiveness.2
  • EFSA research proposes an inclusive growth framework for the sector. The Connect, Accelerate, Regulate, Trade (CART) model identifies four key actions to drive the next chapter of South Africa’s ecommerce expansion.3

Cape Town, South Africa – On 10 November 2025, the Ecommerce Forum of South Africa (EFSA) launched its much-anticipated report, "Seizing the Moment: Unlocking South Africa's Ecommerce Promise", at a hybrid gathering of policymakers, business leaders, and civil society organisations.

Produced by the Mapungubwe Institute for Strategic Reflection (MISTRA) in partnership with the Takealot Group, the report positions ecommerce as a critical engine for South Africa’s next phase of growth — with the potential to reduce inequality, drive re-industrialisation, and expand participation in the formal economy. South Africa’s ecommerce market is projected to grow to R130 billion by 2025, representing nearly 10% of total retail sales.

The keynote address was delivered by Phuthi Mahanyele-Dabengwa, South Africa CEO and Executive Director of Naspers and Prosus, and Chairperson of the B20 Digital Transformation Taskforce. In her remarks, she highlighted how advancing digital transformation can position South Africa for long-term competitiveness.

She commented: “Digital transformation is the defining growth engine of our time. It is a catalyst for inclusive progress, and nowhere is this more evident than in ecommerce. Across the world, digital platforms are opening access to markets, finance, and jobs — connecting entrepreneurs to a global network of consumers. What’s especially exciting is that South Africa has yet to reach its full potential, and the capacity for ecommerce to drive further growth remains immense.”

Commenting at the launch of the report, Dr Alastair Tempest, CEO of the Ecommerce Forum of South Africa, said: “South Africa’s ecommerce share has rocketed from under 1% to nearly 10% of retail in just five years, proof that we’re at a pivotal inflection point. If business, government and civil society seize this moment, we can unlock an export opportunity in excess of R1 trillion, which will widen access for every entrepreneur and anchor South Africa at the heart of Africa’s digital economy.”

The event also showcased valuable perspectives and insights from thought leaders, including:

  • Frederik Zietsman, CEO of the Takealot Group – South Africa’s ecommerce champion – highlighted the sector’s rapid growth and the need for an enabling regulatory environment to sustain its momentum.
  • Shamiela Letsoalo, Chairperson of the EFSA, emphasised collaboration across industry and government to unlock South Africa’s full ecommerce potential.
  • Hardin Ratshisusu, Acting Commissioner at the National Consumer Commission, underscored the importance of consumer protection and trust in building a resilient digital marketplace.
  • Ishraad Kathrada, CEO of the Localisation Support Fund, spoke about South Africa’s reindustrialization efforts and development of local supply-chain capabilities to realise inclusive digital growth.
  • Lufuno Rasoesoe, Managing Director of TOSH Detergents, shared an inspiring perspective on how ecommerce can open national and continental markets for local manufacturers.
  • Donald Valoyi, CEO and Founder of Zulzi, reflected on the entrepreneurial journey of building a home-grown ecommerce platform.

Key insights from the report


Themes

Summary of insights

Strategic imperatives

Empowering the Township Economy

  • South Africa’s township economies, valued at over R900 billion, represent one of the country’s greatest untapped opportunities for ecommerce growth.
  • Yet more than 60% of MSMEs in these areas remain informal, cash-based, and disconnected from digital tools and infrastructure.
  • This limits their participation in the digital economy.
  • Integrate township enterprises into formal digital ecosystems through access to digital payments, logistics, and skills development to unlock inclusive growth.

Addressing inequality

  • Many communities remain excluded from ecommerce due to limited broadband access, inadequate digital literacy, and weak public–private collaboration.
  • These gaps widen inequality and exclude marginalised groups from emerging opportunities.
  • Prioritise investment in digital infrastructure, training, and inclusive partnerships to bridge the digital divide and enable full participation in the digital economy.

Breaking down regulatory hurdles

  • The current ecommerce landscape is hampered by fragmented oversight and uneven competition between global platforms and local MSMEs.
  • Weak consumer protections and inconsistent taxation further constrain growth.
  • Establish a coherent national regulatory framework to ensure fair competition, strengthen consumer trust, and create a predictable environment for innovation and investment.

Unlocking regional opportunities

  • As a member of the African Continental Free Trade Area (AfCFTA), South Africa has a strategic opportunity to align ecommerce policies across Africa and expand regional trade.
  • Connecting MSMEs to continental markets would drive growth and enhance competitiveness.
  • Leverage the AfCFTA framework to harmonise digital trade policies, strengthen cross-border infrastructure, and position South Africa as a regional digital leader.

 

From insight to impact: Turning South Africa’s ecommerce potential into progress

  • Strengthening national partnerships

Building on this momentum, EFSA members are committed to deepening collaboration across the public and private sectors to put the report’s recommendations into practice through the “CART” framework.

  • Championing the growth of ecommerce and policies that support MSME enablement

The EFSA will continue to advance dialogue on the policy alignment required for South Africa’s ecommerce to grow, while advocating for MSMEs in every province to be empowered to thrive online.

  • Contributing to South Africa’s Ecommerce Strategy

The next phase of work will focus on using the insights contained in this report to contribute towards a coherent national ecommerce strategy that positions South Africa as both a regional leader and a global contender in digital trade.

The report is downloadable on the EFSA website on the link below: https://www.linkedin.com/posts/ecommerce-forum-africa_efsa-ecommerce-report-activity-7393590556087615489-napD

MEDIA CONTACT
Zuki Nomnganga
Communications Manager SA - Naspers
+27 63 804 9383
[email protected]

About the Ecommerce Forum of South Africa (EFSA)

Established more than a decade ago, the EFSA is the leading body representing the interests of South Africa’s ecommerce sector. Its mission is to increase awareness, confidence, and capability within the digital commerce ecosystem — ensuring that the benefits of online trade are accessible to all businesses and consumers across the country.

EFSA plays a critical role in nurturing this growth by uniting the broad spectrum of stakeholders that make up the industry. Its membership spans large and small online retailers, brick-and-mortar stores expanding into digital sales as part of their omnichannel strategies, and the network of service providers that power the ecosystem — including technology platforms, payment systems, logistics partners, delivery networks, and ecommerce intermediaries.

The organisation advocates for policies that enable fair competition, digital inclusion, and consumer trust; facilitates dialogue between business and government; and promotes best practices and standards that strengthen the credibility of the sector. Through research, advocacy, and capacity-building initiatives, EFSA works to ensure that South Africa’s ecommerce industry is globally competitive while remaining locally grounded — a catalyst for innovation, employment, and inclusive economic growth.

For more information, please visit https://ecomafrica.org/

About the Mapungubwe Institute for Strategic Reflection (MISTRA)

Since its inception in 2010, the Mapungubwe Institute for Strategic Reflection (MISTRA) has assumed a leading position in long-term, strategic and transdisciplinary research through generating research and creating platforms for engagement. Our research, policy debates, convening power and scenario planning expertise have assisted in finding lasting and effective solutions to the challenges South Africa is facing.

MISTRA deliberates on socio-economic issues that have both a local impact and a global resonance. The Institute is founded by a group of researchers, academics, policy-makers and former governance practitioners. MISTRA carries out research that addresses the country’s complex challenges, straddling issues of nation-formation, economic growth, social equity and South Africa’s global positioning. The research is conducted through a process of engagement and facilitation, drawing on the wide range of available expertise in the country and globally.

For more information, please visit www.mistra.org.za

About the Takealot Group

Takealot Group’s purpose is to change lives for the better through e-commerce. The Takealot Group operates a diversified ecosystem comprising takealot.com (the leading general merchandise ecommerce platform in South Africa), Mr D (only local on-demand platform offering restaurants, groceries, and shops), TakealotMORE (only cross-platform e-commerce subscription loyalty programme in South Africa), and Takealot Fulfilment Solutions (largest scale last mile delivery network with lowest cost and best service).

The Takealot Group focuses on delighting customers and enabling inclusive growth by building South Africa's trusted ecommerce ecosystem.

For more information, visit www.takealotgroup.com

 

1Worldwide Worx (2025). Online retail in South Africa 2024. https://www.worldwideworx.com/wp-content/uploads/2025/09/Online-Retail-in-South-Africa-2025.pdf [Accessed: 28 August 2025].

2Standard Bank (2025). Township Informal Economy Report. https://www.standardbank.co.za/southafrica/business/bizconnect/help-me-grow-my-business/articles/insights-from-the-launch-of-the-township-informal-economy-report-2025 [Accessed 28 August 2025]

3CART framework as developed in the Ecommerce Forum of South Africa (EFSA) research report: "Seizing the Moment: Unlocking South Africa's Ecommerce Potential Promise". Page 90. Accessed here
https://www.linkedin.com/posts/ecommerce-forum-africa_efsa-ecommerce-report-activity-7393590556087615489-napD/


About Naspers:

Established in 1915, Naspers has transformed itself to become a global consumer internet company and one of the largest technology investors in the world. Through Prosus, the group operates and invests globally in markets with long-term growth potential, building leading consumer internet companies that empower people and enrich communities. Prosus has its primary listing on Euronext Amsterdam, and a secondary listing on the Johannesburg Stock Exchange and Naspers is the majority owner of Prosus. 

In South Africa, Naspers is one of the foremost investors in the technology sector and is committed to building its internet and ecommerce companies. These include Takealot, Mr D Food, Autotrader, Property24 and PayU, in addition to Media24, South Africa’s leading print and digital media business.

Naspers has a primary listing on the Johannesburg Stock Exchange (NPN.SJ) and a secondary listing on the A2X Exchange (NPN.AJ) in South Africa and a level 1 American Depository Receipt (ADR) programme which trades on an over-the-counter basis in the US.

For more information, please visit www.naspers.com.

Naspers Labs

In 2019, Naspers Labs, a youth development programme designed to transform and launch South Africa’s unemployed youth into economic activity, was launched. Naspers Labs focuses on digital skills and training, enabling young people to pursue tech careers.