Atta Africa Financial Update

Executive summary for the week of 08-Mar-16 to 15-Mar-16 (week 11)
E-commerce is charging ahead in African markets and it will arguably become the driving force behind growth in the continent's retail sector. While globally, the e-commerce industry is growing at a rate of 16.8 per cent, it is estimated that in Africa growth in this space is racing along at a rate of 25.8 per cent.

These developments in e-commerce are encouraged by increasing levels of data connectivity and the proliferation of smartphones. Couple this with a growing middle class who possess an increasing tendency to spend and e-commerce acts as a vital bridge between these new consumers and global brands.

A recent report by Deloitte records that household consumption on the continent rose from US$364 million in 2000 to more than US$1 trillion in 2012 - there is a sizeable market waiting to click and spend.

Fact: In May 2014, over 250 South African motorists were stopped by traffic police and handed grocery vouchers (if sober), in an attempt to reduce the number of drunk driving-related fatalities on the road

East African Development bank receives US$40 million long term financing

  • The African Development Bank has issued a Sh4 billion (US$40 million) 10-year loan to East African Development bank for regional infrastructure, manufacturing, agribusiness and education lending in member countries
  • The East African Development Bank project pipeline comprises of 49 projects worth Sh36.1 billion (US$355m) meaning it will be seeking additional funds from international lenders