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Age of smart retail in Africa is here

The sector is evolving from shelves and checkouts into smart, seamless experiences

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by Conrad Onyango for bird story agency

Sasa23 May 2025 - 03:00
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In Summary


  • Retailers are accelerating the adoption of generative AI 

A customer shops online


The age of smart retail is unfolding in Africa. Albeit at a small scale, consumers have started interacting with intelligent systems that anticipate their needs, speak their languages and turn routine purchases into personalised journeys.

“Whether you're shopping on Alibaba or local e-commerce platforms like Jumia or Jiji, you're always interacting with AI before you're connected to a vendor,” said Alfayo Nyakundi, a regular online shopper based in Nairobi, in an interview with bird.

Nyakundi said he enjoys online shopping because it helps him compare prices, discover where to find specific products, and spot major discounts and deals on a variety of brands that suit his budget.

“Just yesterday, a friend mentioned a 10-litre air fryer priced at Sh17,000, which I thought was expensive. I found cheaper alternatives online, some going for as low as Sh3,600,” he recalled, referencing recent product prompts that appeared on his smartphone.

Offie Otieno, a clothing and footwear retailer with a physical store in Nairobi’s CBD, conducts most of his sales via WhatsApp.

He said businesses are increasingly adopting AI for customer management.

“Before a seller even gets the chance to respond, AI can step in and reply to customer inquiries,” he says.

“It’s already been trained on frequently asked questions, and it suggests responses that help customers find exactly what they need. AI is already here with us.”

Otieno acknowledges the transformative potential of AI in enhancing customer experience, especially in terms of response time, as more shoppers turn to online platforms.

“It’s fast, it gives direct answers, and it doesn’t waste time,” he says.

As he plans to expand his business, Otieno is seriously considering incorporating AI tools to streamline customer service.

 “I’m thinking of deploying AI in future. Going through 50 customer questions a day about product details or prices is exhausting. AI could help make that process much easier and quicker,” he says.

At the centre of this transformation are African retailers who are accelerating the adoption of generative AI (gen AI) to enhance every facet of the shopping experience, and countries racing to create a favourable environment for this to happen.

Several African countries are at different stages in adopting or developing national AI policies.

According to a new report by global consultancy McKinsey and Company, the retail sector on the continent holds the highest potential for unlocking the biggest economic value from gen AI, estimated at between $6.6 billion and $10.4 billion.

Authors of the report titled, “Leading, not lagging: Africa’s gen AI opportunity,” say African retailers are deploying conversational AI bots that serve as digital shopping assistants.

They are offering personalised recommendations, answering real-time questions and enhancing customer service in multiple languages and dialects.

These bots, the authors affirmed, are becoming the digital frontlines of modern African commerce.

“Prominent retailers with a well-established physical presence across the region have expanded into the online market and are reimagining the shopping experience with gen AI–powered conversational bots,” the McKinsey report states.

While the report does not list these retailers, our spot check on some of Africa’s big retailers and e-commerce platforms point to these developments.

Jumia, Africa’s largest e-commerce platform, uses AI for personalised product recommendations, fraud detection and automated customer service through chatbots.

South Africa’s largest online retailer, Takealot, employs the technology to enhance its warehousing, delivery logistics and customer engagement, leveraging tailored suggestions.

Shoprite and Massmart, two of South Africa’s major retail chains, have adopted AI tools for inventory management, pricing optimisation and customer data analysis.

In Kenya, Twiga Foods, which links smallholder farmers with urban vendors, uses AI to forecast demand and optimise supply chains.

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