eBay Inc (NASDAQ:EBAY) has set its eyes on Africa as it seeks to expand the target market for sellers on its e-commerce platform. The e-commerce giant has teamed up with MallforAfrica.com in a deal that will result in the creation of an eBay-powered platform on the online shopping startup.
The new platform will target shoppers in Nigeria and Kenya once it goes live next month. Buyers in Ghana will also be able to buy things on the new eBay powered platform once it goes live. MallforAfrica CEO, Chris Folayan says they are also planning to add other African countries going forward.
The new app will allow shoppers to shop for goods on eBay and then pay for them through MallforAfrica. EBay says it has not acquired any stakes in MallforAfrica. However, it maintains that the partnership is a financial, marketing and logistics arrangement. What this means is that the e-commerce giant will act as an intermediary in facilitating logistics between US sellers and buyers in Africa.
Founded in 2011 MallforAfrica enjoys backing from UK private equity firm Helios Investment Partners. Department store Macys, Hawes, and Curtis are its other investors. The company currently has its own product-processing center in Portland and Oregon that it plans to use for shipping into Africa.
Race for Customers in Africa
The new partnership underlines eBay push for new opportunities for growth having come under pressure in developed countries. With growth, opportunities in Europe and the US highly suppressed amidst stiff competition, Africa could turn out to be the company’s savior going forward.
Africa online transactions are on the rise with the continent’s consumer spending expected to top highs of $1.4 trillion by 2020. Online sales could top highs of $75 billion by 2025 providing exciting opportunities for growth for the likes of eBay.
eBay Inc (NASDAQ:EBAY) is not the first company to have taken note of the big opportunity available in Africa. Swiss-based firm Ringier as already acquired Nigerian online deal site Dealdey as the race for market share heats up. Amidst the threat posed by competition, the US Company remains confident of making it count at the back of its partnership with MallforAfrica.