The timing and opportunity to establish and grow online marketplace portals and related services in the African emerging markets is exciting.
The pace in which the world is digitised and connected (close to 4.5 billion people are connected and there are 5.2 billion mobile phone subscribers according to GSMA) with the Africa being the latest to join, make the addressable market phenomenal.
Africar Group is live in markets with more than 900 million people, ~ 15% of global population.
The African emerging markets represent a substantial opportunity to benefit from the tailwind of high population and strong GDP growth, increasing levels of internet connectivity, smartphone usage and social media penetration in the region. The substantial market dynamics is leading to growing demand for cars, consequently to growing use of online marketplaces to facilitate the transaction of cars and related services.
Africar Group is leveraging and adapting into Sub-Saharan African markets the success of online classifieds and marketplaces business models in developed markets which has time after time proven its profitability and solid value creation around the globe.
Africar Group’s Local Profile and Regional Presence strategy has proven to be attractive for local engagement, regional partnerships and growth and our team has a solid track record and unique domain expertise to tap into the African market for marketplace portals, social media and online digital technology.
World wide there is an increased interest of the African markets. Investments from around the world, mainly China and Europe, is looking at capitalising on the massive population growth. Both these factors is driving up the demand for automotives across the continent. The need for online marketplace to sell and buy automotives is increasing by the day.
This offers interesting exit opportunities for Africar Group when the time is right for us. It could be via merger with competitor/strategic partners – trade sale to competitors/strategic partners – tranche sales to new shareholders.