South Africa: Covid-19 Brings the Future Forward for Naspers

analysis

Covid-19 has made business operating conditions tough for all entities, including Prosus. But like Amazon, Google, Alibaba and Facebook, the internet firm has benefited from the lockdowns.

The global lockdown has accelerated the adoption of e-commerce around the world, and internet company Prosus is a thumping beneficiary of this trend.

Global e-commerce sales grew as much in one month this year, as they have in the past seven years. This has been the impact of the lockdown, says Naspers and Prosus CEO Bob van Dijk.

In particular, in the six months to September, the group's online food delivery business grew revenue by 141%, double that of the equivalent period last year, etail grew by 70%, edtech grew by 54% and online payments - despite the bottom falling out of the airline and hotel sectors - grew by 29%.

In South Africa, where online sales accounts for just 3% of retail, online retailer Takealot grew revenue by 66% and Mr D Foods grew revenue by 100%, despite their respective lockdowns.

On the other hand, the global Classifieds business contracted by 3% as people stopped buying and selling second-hand cars and other goods.

Overall, the group's e-commerce portfolio grew by 51% in...

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