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How Augmented Reality (AR) and Virtual Reality (VR) Are Changing the African Shopping Experience

Globally, the AR/VR market is projected to generate US$46.6 billion in revenue in 2025, with a steady compound annual growth rate (CAGR) of 7.42% expected to push this figure to US$62.0 billion by 2029.

Oluwakemi Akintola by Oluwakemi Akintola
6 June, 2025
in Insights
Reading Time: 7 mins read

As Africa’s digital economy continues to accelerate, immersive technologies like Augmented Reality (AR) and Virtual Reality (VR) are beginning to reshape the way consumers discover, try, and buy products. Globally, the AR/VR market is projected to generate US$46.6 billion in revenue in 2025, with a steady compound annual growth rate (CAGR) of 7.42% expected to push this figure to US$62.0 billion by 2029. For African businesses; whether startups, SMEs, or large enterprises, this signals a powerful opportunity to innovate, scale, and leapfrog legacy retail barriers. From smartphone-enabled AR product previews to fully immersive virtual showrooms, this article explores the transformative potential of these technologies across the African retail landscape and offers a strategic roadmap for marketers, entrepreneurs, and industry leaders looking to stay ahead of the curve.

The Global Surge: Why AR and VR Can’t Be Ignored

The immersive tech landscape is experiencing exponential growth, driven by evolving consumer expectations, advancing hardware, and increased internet penetration:

  • The market is projected to achieve a Compound Annual Growth Rate (CAGR) of approximately 35.2% during this period. In 2023, the market is estimated to be valued at USD 7.55 Billion, and it is expected to reach USD 143.8 Billion by 2032.  
  • Global Virtual Reality Shopping Market size was valued at USD 54.74 Bn. In 2023 and the total Virtual Reality Shopping revenue is expected to grow by 28.2 % from 2024 to 2030, reaching nearly USD 311.55 Bn.  
  • 66 percent of consumers said they were interested in buying items through AR/V and 63 percent said they expect AR/VR to change the way they shop, according to a 2023 Deloitte study.

This global momentum signals that immersive commerce is no longer futuristic, it’s becoming the norm. The question is: How can Africa align with this wave?

Africa’s Readiness: Digital Commerce on the Rise

Africa’s unique mobile-first ecosystem, young population, and fragmented retail infrastructure provide fertile ground for AR/VR adoption; though with important caveats.

Key Digital Indicators:

  • Mobile Internet Usage: Over 72% of Sub-Saharan Africa’s internet traffic comes from mobile devices.
  • Mobile Shopping Penetration:
    • Nigeria & Kenya: 56% of users have shopped via mobile.
    • Egypt: 55%, Morocco: 25%.
  • Youth Demographics: 60% of Africa’s population is under 25 tech-savvy, mobile-driven, and open to digital-first shopping experiences.

Infrastructure Challenges:

  • Inconsistent internet speeds, especially in rural areas.
  • The cost of AR/VR hardware is still high for mainstream consumers.
  • Need for localised content in multiple African languages.

Practical Applications of AR/VR in African Retail

From small businesses to national retailers, AR and VR are offering scalable use cases across categories:

1. Virtual Try-On Experiences

Especially relevant in fashion, beauty, and furniture retail:

  • Clothing brands now offer virtual fitting rooms using smartphone cameras.
  • Cosmetic companies allow customers to try lipsticks, foundation, or eyeshadow virtually, which is ideal for Africa’s diverse skin tones.
  • Furniture retailers provide room-planning tools for sofa and decor placement using AR.

Stat: When Gunner Kennels integrated Shopify’s AR tools to let customers visualise a 3D model of their dog kennels in real-life settings, they saw a 40% increase in order conversions and a 5% drop in return rates. This demonstrates how even simple AR implementations can drive tangible business outcomes—boosting buyer confidence and minimising costly returns. 

2. Immersive VR Shopping Environments

With retail infrastructure gaps in many African regions, VR offers a “build without bricks” solution:

  • Virtual malls and boutiques can be accessed from mobile phones or low-end VR headsets.
  • Real estate companies are offering 360-degree property tours—cutting site visit costs.
  • Automotive companies can showcase models via virtual showrooms, eliminating the need for nationwide dealerships.

3. AR/VR in B2B and Training

Not just for customers—businesses are also adopting immersive tech:

  • Remote onboarding for retail staff using VR modules.
  • Visual, interactive manuals to train technicians and sales teams.
  • Field support using AR headsets for live assistance and product demos.

Regional Spotlights: Where Opportunity is Growing

South Africa

  • The most advanced AR/VR market due to strong e-commerce, logistics, and telecom infrastructure.
  • Startups like Zappar SA are creating AR campaigns for local and international brands.
  • VR is used in real estate, fashion, and even township tourism.

Nigeria

  • Africa’s largest economy has a youthful, mobile-first population.
  • Fintech boom (e.g., Flutterwave, Paystack) supports e-commerce scalability.
  • Fashion and beauty AR experiences have strong demand due to cultural emphasis on personal appearance.

Kenya

  • Global leader in mobile money (M-Pesa) integration with e-commerce.
  • The startup ecosystem in Nairobi’s “Silicon Savannah” is experimenting with low-bandwidth AR apps for rural reach.
  • High government support for digital innovation.

How SMEs and Large Brands Can Get Started

Phase 1: Launch AR on Mobile

  • Use lightweight AR via smartphone cameras and web browsers (WebAR).
  • Focus on high-return sectors like clothing, cosmetics, and home decor.
  • Partner with local influencers to drive education and adoption.

Phase 2: Add VR for Premium Experiences

  • Launch VR showrooms for high-value goods (e.g., luxury fashion, real estate, autos).
  • Offer VR access via kiosks in malls or with local agents for areas with low personal device access.
  • Use VR for brand activations, exhibitions, and digital fashion shows.

Phase 3: Localise and Scale

  • Translate apps and experiences into local languages and dialects.
  • Develop AR templates or plugins for SMEs to adopt via e-commerce platforms like Jumia, Takealot, or Flutterwave Store.
  • Collaborate with universities and coding academies to grow local talent in immersive tech.

Challenges and Considerations

While the potential is promising, scaling AR/VR adoption in Africa does come with hurdles:

  1. Device Compatibility: Not all consumers have AR/VR capable smartphones or headsets, though this is improving with newer models entering the market.
  2. Bandwidth Constraints: High-speed internet is still inconsistent across many regions, affecting seamless experiences.
  3. Tech Literacy: A learning curve exists for both consumers and merchants unfamiliar with immersive interfaces.
  4. Development Costs: While declining, custom AR/VR development still requires investment and technical expertise.

Strategic Recommendations

  1. Start Small and Scale: Begin with lightweight AR features integrated into your mobile apps or social platforms. Think virtual try-ons, 360-degree product views, or interactive filters.
  2. Partner with Local Tech Startups: Africa has a growing ecosystem of AR/VR developers and agencies. Collaborate with them to create tailored, affordable solutions.
  3. Invest in Consumer Education: Use engaging content to teach your audience how to interact with AR/VR tools. This enhances adoption and loyalty.
  4. Track ROI and User Metrics: Treat immersive tech as part of your digital transformation strategy. Use analytics to monitor usage patterns, dwell time, and conversion rates.
  5. Leverage Social Commerce: Platforms like Instagram, Snapchat, and TikTok support AR features natively. Explore branded filters, virtual product trials, and gamified experiences to boost engagement.

Africa’s Time to Lead

Africa’s future in retail isn’t just about catching up, it’s about leading through innovation tailored to its context. With a mobile-first mindset, a youthful population, and a growing appetite for personalised experiences, immersive commerce presents an unmatched opportunity for transformation.

AR and VR aren’t just technologies, they’re tools for inclusion, access, and engagement. They empower a small business in Lagos to serve customers across continents, or a fashion designer in Nairobi to showcase her work without ever booking a flight.

The leaders who act now, those who understand the data, the local nuances, and the need for agile strategies—will be the ones shaping the next chapter of Africa’s digital economy.

Connect with Marketing Analytics Africa (MAA) today to discover how data, innovation, and immersive tech can power your next big move.

 

Tags: African digital economyAR in AfricaAR product visualizationData-Driven Marketinge-commerce innovationimmersive shoppingretail tech AfricaSME technology adoptionvirtual reality marketingVR retail trends
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Oluwakemi Akintola

Oluwakemi Akintola

I am a passionate contributor at Marketing Analytics Africa (MAA). My work involves researching African marketing trends, creating engaging content, and managing data to support impactful projects and events. I’m committed to empowering African businesses with data-driven insights and helping shape a more innovative and inclusive marketing landscape across the continent.

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