Takealot Group CEO Mamongae Mahlare on the evolution of SA’s e-commerce space

South Africa's e-commerce landscape has been steadily evolving over the past 15 years, with Takealot establishing itself as a prominent player in the market. Takealot Group CEO Mamongae Mahlare shared insights on the growth trajectory of online shopping in the country during a recent interview with CNBC Africa. Mahlare highlighted that e-commerce currently accounts for about 4% of total retail in South Africa, which is still in its early stages compared to other emerging markets where penetration rates range from 12% to 20%. This indicates significant room for growth and opportunity within the e-commerce sector. Despite the dominance of a few key players like Takealot, Mahlare emphasized the importance of enabling new entrants, particularly small and medium enterprises (SMEs), to access the market and thrive. Takealot Group's business model is designed to support SMEs, with over 8,000 SMEs contributing to half of takealot.com's turnover. Additionally, Superbalist features over 120 local brands, and Mr. D services over 10,000 restaurants and convenience outlets, most of which are SMEs. Mahlare also discussed the impact of COVID-19 on e-commerce in South Africa, noting that the pandemic accelerated the adoption of online shopping among South African consumers. While there has been some return to traditional brick-and-mortar stores, the shift to online shopping has largely persisted, with double the number of South Africans now making purchases online compared to pre-COVID levels. This acceleration has extended beyond urban areas to rural regions, highlighting the growing accessibility of e-commerce platforms. Addressing environmental concerns, Mahlare revealed Takealot's efforts to reduce its carbon footprint, including the introduction of e-bikes for deliveries, solar panels on distribution warehouses, and initiatives to promote recycling and donation of clothing. Looking ahead, Mahlare emphasized the importance of regulatory support for the e-commerce sector to drive job creation and economic growth. She highlighted the role of e-commerce in supporting SMEs and job creation, with Takealot Group alone facilitating 33,000 jobs through its platform. Mahlare called for a more supportive regulatory environment to foster the continued growth and impact of e-commerce in South Africa.