A Snapshot eCommerce in Ghana 2024

In Ghana, the eCommerce sector is experiencing significant growth, fueled in part by the global COVID-19 pandemic that hastened the adoption of online shopping and delivery services. The trend encompasses various categories, including the online purchase of restaurant and takeout food, beauty and health products, clothing, and electronics.

With approximately 15 million internet users actively engaging in daily online purchases, local eCommerce platforms such as Hubtel, Plendify, Glovo, Jiji, Uber Eats, and Bolt Food have become key players. Notably, Ghanaians are also utilizing international platforms like Amazon, leveraging U.S. delivery locations and discount express couriers for more cost-effective shipping to Ghana.

The robust growth of eCommerce in Ghana is supported by widespread mobile data access provided by major telecom operators such as MTN, Vodafone, and AirtelTigo. With around 40 million mobile phone connections and six million active social media users, a significant demographic of users, particularly those aged between 16 and 35, contributes to the thriving online market. According to the International Trade Administration, approximately 79 percent of online users in Ghana own smartphones, spending an average of three hours online daily.

According to Hootsuite, social media ads, particularly on Instagram, Facebook, and Twitter, are the primary channels through which consumers discover new brands in Ghana. This underscores the importance of effective social media strategies for local companies aiming to drive traffic to their websites or linked Shopify accounts.

While Business-to-Consumer (B2C) eCommerce is flourishing, Business-to-Business (B2B) sales, especially for industrial inputs and advanced machinery, remain underdeveloped. Word-of-mouth and recommendations from professional contacts still guide purchasing decisions in this domain. Alibaba and AliExpress are utilized by some local companies, although concerns about scams persist. U.S. companies can leverage effective search engine optimization and transparent shipping cost calculations to attract B2B buyers in this price-sensitive market.

In terms of digital payments, while some local banks offer classic credit cards, mobile money and debit payments from services like Emergent, TechHustle, Vodafone, and MTN are more widely embraced. Recognizing the importance of diverse payment options, eCommerce platforms in Ghana should accommodate various payment methods beyond major credit cards.

However, challenges persist in policy and technology arenas. Ghana needs to develop a comprehensive consumer protection framework outlining the responsibilities of both buyers and sellers. Key challenges include addressing last-mile delivery issues and enhancing the verification of digital identities. As the eCommerce landscape evolves, the development of multi-market and intra-African eCommerce and payment platforms by U.S. and local companies signals a growing trend in the region.

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