Africa Gift Card Market to Hit $8.5 Billion by 2030: New Report
- Africa’s gift card market is poised for significant expansion, projected to reach $8.5 billion by 2030, according to a new report by ResearchAndMarkets.com.
- The report, released on February 20, 2026, forecasts that the African gift card market will grow by 11.6% year-on-year in 2026, reaching $5.6 billion.
- Competition within the market is expected to intensify, particularly around control of distribution channels.
Africa’s gift card market is poised for significant expansion, projected to reach $8.5 billion by 2030, according to a new report by ResearchAndMarkets.com. The sector is currently experiencing robust growth, fueled by the increasing adoption of fintech platforms, evolving payment ecosystems, and the strategic initiatives of major retail chains across the continent.
The report, released on , forecasts that the African gift card market will grow by 11.6% year-on-year in , reaching $5.6 billion. This follows a strong period of growth between and , which saw a compound annual growth rate (CAGR) of 12.5%. Analysts predict a continued upward trajectory, with a projected CAGR of 10.9% from to .
Competition within the market is expected to intensify, particularly around control of distribution channels. Fintech marketplaces are expanding their cross-border catalogues, while payment networks are integrating voucher systems into everyday transactions. Retailers, meanwhile, are focused on strengthening loyalty programs to retain stored value within their own ecosystems. This dynamic suggests a shift towards a more integrated and competitive landscape.
The African gift card market remains fragmented, varying significantly from country to country. It operates at the intersection of traditional retail gift cards, digital vouchers, and fintech-driven prepaid systems. Competitive pressure is most pronounced in countries where modern retail chains have successfully implemented omnichannel operations and where digital financial platforms are already distributing value products through apps and merchant networks.
Several key players are shaping the market. Flutterwave, for example, operates a dedicated marketplace offering third-party gift cards and voucher codes, prioritizing speed of delivery and catalogue breadth. In North Africa, Fawry is integrating e-vouchers and partner offers into its payment ecosystem, leveraging its extensive merchant acceptance network. South African retailers, including Pick n Pay, Shoprite Group, and Checkers, are developing closed-loop systems through loyalty-linked products, influencing customer spending habits.
Recent mergers and acquisitions activity has largely focused on retail and payment infrastructure, rather than pure-play gift card companies. Pepkor’s acquisition of Retailability brands, for instance, expanded its store network, potentially supporting future voucher distribution. Similarly, Fawry’s partnerships with Orange Egypt and FORSA in Egypt have strengthened its ecosystem and bundling capabilities.
In Kenya, a notable trend is the increasing distribution and redemption of digital vouchers through mobile money wallets, such as M-Pesa, and payment rails linked to Safaricom infrastructure. This reflects the dominance of mobile money as the primary transaction layer for daily spending, positioning gift cards as a natural extension of existing payment habits. Retailers and digital merchants are increasingly favoring wallet-based gift cards to reduce costs associated with physical cards, fraud, and distribution.
Nigeria is witnessing growing demand for international brand gift cards, as consumers seek to circumvent restrictions on cross-border payments for services like streaming, gaming, and global e-commerce. Platforms like Paystack and Flutterwave are facilitating the distribution of prepaid value as part of broader merchant payment solutions.
The corporate sector is also driving growth, with companies increasingly using reloadable or multi-merchant gift cards for employee rewards, incentives, and disbursements. This shift is motivated by the greater auditability and reduced risk of leakage compared to traditional cash-based bonuses. Industry observers anticipate that business-to-business and hybrid B2B2C use cases will surpass consumer gifting growth in the coming years.
The report concludes that digital-first issuance will become the dominant model for new gift card supply, with physical cards gradually declining in strategic importance. These cards are expected to remain relevant primarily in malls and supermarkets. Super-apps and online marketplaces are likely to treat gift cards less as traditional gifts and more as balance-management tools designed to enhance user engagement and loyalty within their ecosystems.
With Africa’s overall payments landscape estimated at roughly $17.7 billion and continuing to expand, analysts believe the convergence of fintech innovation, retail distribution networks, and mobile money adoption will fundamentally reshape the role of stored-value instruments across the continent’s commercial ecosystem. The evolving market presents significant investment opportunities for companies positioned to capitalize on these trends.