The Western Cape is at the forefront of South Africa’s fast-growing e-commerce market – powered by strong digital infrastructure, high internet penetration, and a rising wave of tech-savvy consumers. It’s one of the most active and promising online retail hubs on the continent.
South Africa’s e-commerce boom is accelerating, underpinned by mobile shopping, widespread connectivity, and changing consumer habits. In 2023, 76% of South Africans were online. By 2029, that number is set to hit 98%.
On a global scale, e-commerce sales reached US$4.17 trillion in 2024, with an expected annual average growth rate of 9.3% through 2029. In step with this trend, South Africa’s e-commerce revenue is forecast to hit US$5.58 billion by 2025 and grow to US$10.88 billion by 2029.
From online retail platforms to last-mile delivery solutions, the region offers fertile ground for investment, innovation, and scale.
Key segments include:
Food & Beverage Delivery
Valued at US$2.1 billion in 2023, this segment - led by Mr D, UberEats, and grocery apps like PnP ASAP, Woolies Dash, and Checkers Sixty60 - is projected to reach US$3.2 billion by 2027.
Consumer Electronics
A top-performing category, with Takealot, Amazon, Dreamware Tech, and Wootware among key players.
Fashion
Strong local platforms such as Superbalist are leaders in online fashion and lifestyle retail.
Services & Digital Goods
Platforms like SweepSouth (home services) and Webtickets (event ticketing) reflect a shift toward convenience-driven digital consumption.
Why Cape Town & the Western Cape
1. Deep Talent Pool & Innovation Pipeline
The Western Cape benefits from top universities that produce skilled ICT graduates and support tech entrepreneurship through research, incubation, and commercialisation initiatives.
2. Robust Innovation Ecosystem
The region hosts a mature innovation ecosystem supported by accelerators, co-working spaces, VC firms, and industry bodies that drive digital commerce.
3. Diverse E-Commerce Landscape
The local market features a broad mix of players, including traditional retailers expanding online, e-tailers, tech developers, fintech startups, logistics firms, and digital marketing agencies.
4. Home to Market Leaders
Cape Town-based companies, including Amazon, Takealot, Checkers and Woolworths consistently rank among South Africa’s most visited online platforms.
5. Strategic Distribution Infrastructure
The Western Cape’s access to modern ports, airports, and road networks enhances supply chain efficiency, ensuring reliable delivery across South Africa and into regional markets.
6. Powered by Mobile, Driven by Data
The region enjoys high levels of internet connectivity and smartphone usage, supporting strong digital engagement and mobile commerce growth.
7. Appealing Lifestyle & Talent Attraction
The Western Cape’s quality of life draws top digital talent and remote workers, enabling companies to build agile teams with access to global best practices.
8. Gateway to African & Global Markets
Its geographic position and trade ties make the province a natural launchpad for businesses looking to expand into sub-Saharan Africa and international markets.
9. Stable, Business-Friendly Government
Provincial and local governments prioritise ease of doing business, digital transformation, and policy support for innovation – creating a fertile environment for e-commerce success.
10. Incentives
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