Study finds Africa as an ideal ground for development of super apps

Nairobi, Kenya, Dec 7 – Middle East and Africa has emerged as a fertile ground for the development of super apps, a  study commissioned by Mastercard Middle East and Africa (MEA) has revealed noting that this presents a good opportunity for growth in ride-hailing services, grocery delivery and financial services.

The report carried out by Economist Impact revealed that the prevalence of low-end mobile phones, as well as high internet costs in the MEA, make super-apps an attractive product.  

“MEA has historically been the region with the lowest levels of connectivity as well as high fixed-line broadband costs. In many countries the advent of cheap smartphones has allowed populations to leapfrog desktop technology and adopt mobile apps as their first digital device,” the report revealed.

The paper titled ‘from online bazaar to one stop shop: The rise of super-apps in the Middle East and Africa’ noted that Super-apps can be drivers for financial inclusion in the MEA.

“Furthermore, in remote areas where a lack of traditional bank branches has contributed to scant financial service provision, super-apps enable previously unbanked people to do financial transactions and become part of a wider financial ecosystem,” the paper noted.

Ngozi Megwa, Senior Vice President, Digital Partnerships, Middle East and Africa said that expanded market in Africa presents a wealth of customer data, which regional players could leverage to add value for all stakeholders.

“Some of the ripe sectors in MEA who could throw up players to become super-apps are insurance across the GCC, the second-hand car market, online property brokers in the UAE, and digital remittances across Sub-Saharan Africa,” Walter Pasquarelli, Research Manager, Tech & Society, Economist Impact added.

The paper , nonetheless, revealed that the harmonization of national policies remains the biggest challenge to the scaling-up of super-app presence in the MEA region.

“Although the African Union and Gulf Cooperation Council are fostering the harmonization of industrial and data policies, for super-apps seeking to further their reach, the current fragmentation presents a significant operational, legal and financial burden,” the report read in part.

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