Nowhere is the transformation of the 21st-century economy more visible than in the shared economy, where access is valued over ownership. In particular, the transportation and hospitality industries have experienced an unprecedented reconfiguration, with platforms like Uber, Bolt, Airbnb, and local alternatives bridging economic gaps and redefining convenience. While the global shared economy was valued at approximately $260 billion in 2024 and is projected to exceed $335 billion by 2025, its impact in Africa is even more profound, given the continent’s rapid urbanisation, high mobile penetration, and growing middle class.
Africa’s participation in the shared economy is backed by tangible numbers. The continent’s transportation-sharing sector alone is estimated to be worth over $6 billion, fuelled by services like Uber, which has recorded over one billion rides across Africa since its launch in 2013. In Kenya, the ride-hailing industry contributes approximately $2.3 billion annually to the economy. Nigeria, a dominant player, has over 14 million active users on ride-sharing apps, with a projected revenue increase of 19.8% annually in the sector. Similarly, the hospitality-sharing sector has been a game-changer, with Airbnb generating over $250 million in host earnings in South Africa alone. Countries like Morocco, Kenya, and Ghana have also seen a surge in peer-to-peer accommodation, with over 500,000 active listings across the continent.
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Africa’s Unique Approach to the Shared Economy
Globally, the shared economy thrives on efficiency, affordability, and technological integration. In the United States and Europe, platforms like BlaBlaCar, WeWork, and Turo have revolutionised mobility, workspace, and car rentals, respectively. China’s ride-sharing market, spearheaded by Didi Chuxing, commands over 70% of its urban mobility sector, illustrating the scale of economic disruption. In Latin America, companies like 99 in Brazil and Beat in Peru compete successfully with global brands, capitalising on region-specific transport needs.
Africa’s entry into this dynamic economy mirrors global patterns but carries unique adaptations. Given the continent’s fragmented transportation networks and limited hotel infrastructure outside major cities, shared platforms have emerged as viable alternatives to traditional transport and lodging services. In Nigeria, for instance, ride-sharing accounts for approximately 30% of urban transport, complementing overstretched public transit systems. In Egypt, Uber and Careem jointly account for 8% of Cairo’s daily transport (Egypt Transport Authority, 2023), illustrating a growing dependence on these services.
Africa’s New Mobility Paradigm
Across Africa, ride-sharing has evolved into a necessity rather than a luxury. In Lagos, the average commuter spends over three hours in traffic daily, a congestion cost that trims Nigeria’s GDP by an estimated $4 billion annually. Shared mobility services have provided much-needed relief, cutting travel times by nearly 40% in cities where they operate effectively. Rwanda, which has positioned itself as a tech-forward economy, has implemented a robust ride-hailing regulation system that encourages competition among providers while ensuring consumer protection.
Beyond urban mobility, motorcycle ride-sharing (boda-boda services) in East Africa has transformed last-mile connectivity. Startups like SafeBoda in Uganda and MAX in Nigeria have raised millions in funding, facilitating economic inclusion by providing employment to thousands of riders. In Kenya, digital taxi-hailing services, including Bolt and Little, contribute to job creation for over 100,000 drivers (Kenya Transport Report, 2023).
The Airbnb Revolution in Africa
Hospitality-sharing services have challenged traditional hotel monopolies, offering cost-effective alternatives to travellers while boosting local economies. In South Africa, Airbnb contributes nearly $1 billion to the tourism industry, employing thousands indirectly, according to the Airbnb Economic Impact Report, 2023. The success of Airbnb in Ghana has been staggering, with Accra ranking among the top African cities for short-term rentals due to its growing expatriate and digital nomad community.
However, the sector is not without challenges. In Morocco, where traditional riads have been converted into Airbnb accommodations, local authorities have raised concerns over taxation and regulatory oversight. Similar debates are occurring in Kenya, where officials are considering policy frameworks to regulate short-term rentals and ensure fair competition within the hotel industry (Kenyan Tourism Board, 2023).
Policy, Trust, and Digital Inclusion
Despite the rapid expansion of Africa’s shared economy, several barriers threaten to stifle its full potential. Regulatory uncertainty remains a major hurdle. In Nigeria, fluctuating policies on ride-hailing licensing fees have deterred new entrants into the market. Similarly, South Africa’s periodic crackdowns on unlicensed Uber drivers highlight the need for clear-cut policies that balance innovation with compliance.
Trust and security also pose challenges. Reports of fraudulent activities and safety concerns have led to calls for stricter identity verification on ride-sharing and accommodation platforms. In response, companies like Bolt have introduced emergency response features, while Airbnb has implemented stricter vetting processes for hosts and guests.
Digital inclusion is another key issue. While mobile penetration in Africa is high, reaching 46% of the population, access to smartphones and internet connectivity remains uneven, particularly in rural areas. Expanding internet coverage and digital literacy will be crucial for ensuring broader participation in the shared economy.
What Lies Ahead for Africa’s Shared Economy?
The road ahead is filled with both promise and complexity. The projected value of Africa’s ride-sharing market is expected to surpass $12 billion by 2030, with increased local competition and innovations in electric mobility. Countries like Rwanda and Kenya are already leading in e-mobility integration, with startups introducing electric ride-hailing services to reduce carbon footprints.
In the hospitality sector, Africa’s growing middle class and inbound tourism will continue to drive demand for peer-to-peer accommodations. With stricter regulations and improved digital security, platforms will likely see increased adoption among both local and international travellers.
Africa’s shared economy is more than a fleeting trend; it is a paradigm shift in how transportation and hospitality operate on the continent. If nurtured correctly, this sector has the potential to create millions of jobs, improve service accessibility, and redefine urban mobility. However, its sustainability hinges on proactive policy frameworks, enhanced trust mechanisms, and inclusive digital access. The journey is underway, and Africa is poised to steer the shared economy towards a more interconnected and prosperous future.
