Streaming issues? Report here
money-show-thumbnailjpg money-show-thumbnailjpg
The Money Show with Bruce Whitfield
18:00 - 20:00
volume_up
volume_mute

Up Next: The Aubrey Masango Show
See full line-up
The Money Show with Bruce Whitfield
18:00 - 20:00
Home
arrow_forward
Business

Online business boom: e-commerce in SA to jump 150% by 2025

15 September 2020 7:23 PM
Tags:
The Money Show
Bruce Whitfield
Online business
Online shopping
Rand Merchant Bank
rmb
e-commerce
Cyber security for online shopping
Lockdown
COVID-19
coronavirus pandemic
Aluwani Thenga

FNB estimates that e-commerce will be worth R225b in five years. Bruce Whitfield interviews Rand Merchant Bank's Aluwani Thenga.

Rand Merchant Bank (RMB) estimates there are now around 5,000 businesses online in South Africa with a turnover of R100,000 or more.

And e-commerce is expected to be worth R225bn in SA by 2025, writes Aluwani Thenga in an article on the RMB website.

That's a 150% surge within five years.

Picture: 123rf.com

While the move to online purchases was growing pre-Covid, it's lockdown restrictions that acted as "a massive accelerant" in pushing South Africans further in line with this global trend.

A recent Nielsen study on the impact of Covid-19 on fast-moving consumer goods (FMCG) and retail found the following:

"68% of South African consumers reduced their frequency of visiting physical supermarkets, while 37% of South African consumers increased their online shopping activity."

Bruce Whitfield interviews Aluwani Thenga, Executive Head of Merchant Services Growth at FirstRand Bank (First National Bank/Rand Merchant Bank).

The kind of shift that we've seen... is quite astonishing. I think what the pandemic and the lockdown that came through in March has acted as, it's been a bit of a catalyst or accelerant in that shift.

Aluwani Thenga, Executive Head of Merchant Services Growth - FirstRand Bank

At FNB we've seen more and more of our customers going online, but this has been quite steep over the past six months.

Aluwani Thenga, Executive Head of Merchant Services Growth - FirstRand Bank

I think we also saw that shift in many if our main retailers, mainly in the grocery field...

Aluwani Thenga, Executive Head of Merchant Services Growth - FirstRand Bank

Thenga comments on teething problems and resulting consumer frustraton when lockdown was implemented and there was a sudden surge in demand.

That's testament to the fact that a very small fraction of the South African population was doing shopping online pre-Covid and then because the opportunity was there, the more that demand shifted from the physical to online... some of the businesses were caught unawares.

Aluwani Thenga, Executive Head of Merchant Services Growth - FirstRand Bank

By our estimation I think by 2025 we'll see the market... shifting dramatically... because many of the business that would have otherwise thought of e-commerce as something that you would do over and above what you've done on your physical shelves - that has become front and centre for many of these retailers...

Aluwani Thenga, Executive Head of Merchant Services Growth - FirstRand Bank

... the consumer trend and behaviour is such that people are looking for the convenience and security of being able to do anything online at any time as opposed to keeping to those shopping hours.

Aluwani Thenga, Executive Head of Merchant Services Growth - FirstRand Bank

For more detail, take a listen:


This article first appeared on 702 : Online business boom: e-commerce in SA to jump 150% by 2025


15 September 2020 7:23 PM
Tags:
The Money Show
Bruce Whitfield
Online business
Online shopping
Rand Merchant Bank
rmb
e-commerce
Cyber security for online shopping
Lockdown
COVID-19
coronavirus pandemic
Aluwani Thenga

More from Business

Ecstasy mandy mdma 123rf 123rflifestyle

Decriminalise the use of recreational drugs – Department of Social Development

25 September 2020 3:37 PM

"It’s time to stop arresting drug users," Deputy Minister of Social Development Hendrietta Bogopane-Zulu told the UN this week.

Share this:
Read More arrow_forward

Elon Musk on the cover of Newsweek 123rfbusiness 123rf 123rflifestyle

Elon Musk is R1.1 trillion richer than at the start of the pandemic

25 September 2020 2:08 PM

The Pretoria native is having an excellent pandemic – much like his über-rich peers.

Share this:
Read More arrow_forward

Woman saving money piggy bank mask 123rf 123rfbusiness 123rflifestyle

Money lessons Covid-19 taught – heed them for a brighter, wealthier future

25 September 2020 10:44 AM

Your financial future – even if you have to start over – could be brighter than it would’ve been without the pandemic.

Share this:
Read More arrow_forward

Deputy Chief Justice Raymond Zondo at the state capture inquiry

'It’s sad and awful! Judge Raymond Zondo sounds resigned and defeated'

25 September 2020 9:17 AM

"Zondo’s comments at the end of the hearing; it was just so bleak! A sombre, grim end to a day," says journalist Erin Bates.

Share this:
Read More arrow_forward

cashless-paymentjpg

'SA cash economy about 60% of GDP, moving that to digital would be huge saving'

24 September 2020 8:39 PM

The Covid-19 pandemic's moving us towards a cashless society. Arabile Gumede interviews Ukheshe co-founder, Clayton Hayward.

Share this:
Read More arrow_forward

Small business owners entrepreneurs entrepreneurship 123rf 123rfbusiness

Retail Capital injects R500m into economy through Covid-relief for SMEs

24 September 2020 7:41 PM

'Smaller businesses have largely been ignored'. Arabile Gumede interviews Retail Capital CEO Karl Westvig.

Share this:
Read More arrow_forward

national_lottery.jpg

Diverted Lotto millions: 'Can we please get to holding people to account!'

24 September 2020 6:58 PM

Outa's Stefanie Fick urges the speedy investigation of allegations against the suspended COO of the National Lotteries Commission.

Share this:
Read More arrow_forward

Skyscrapers CBD Johannesburg 123rf 123rfbusiness

Long-term investment case for property in Africa remains intact

24 September 2020 1:38 PM

There’ll be many opportunities for frontier investors in the coming years, says Absa's Somaya Joshua.

Share this:
Read More arrow_forward

villa mansion pool dusk 123rf 123rfbusiness 123rflifestyle

Joburg City Power cuts wealthy Dainfern households for electricity theft

24 September 2020 12:49 PM

"There was resistance," says City Power's Isaac Mangena. "Security told us, 'Why are you here? Politicians stay in this area!'"

Share this:
Read More arrow_forward

Depressed boy child holding smile smiley pretending depression depressed 123rf

Social media: We are puppets. Especially our kids – Netflix documentary

24 September 2020 11:46 AM

We’re lab rats in a social experiment of unapparelled importance. Kieno Kammies interviews Dean McCoubrey of MySociaLife.

Share this:
Read More arrow_forward