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COVER STORY

CX key to

E-COMMERCE LOGISTICS

ENIGMA IN AFRICA

The e-commerce market in the African continent is growing, delivery, e-commerce, and retail segments.
no doubt. However, solving the logistics enigma, which is Soham Chokshi, CEO & co-founder of
unique to the region, will be key to its ability to make money Shipsy, who is also bullish about mobile
penetration in the continent, noted that
sustainably. Investing in research, developing physical the proliferation of mobile devices has led
infrastructure, connecting the digital dots and above all to a surge in mobile commerce, enabling
keeping customer experience (CX) at the centre is the way consumers to conveniently shop and make
transactions using their phones.
to solve it, Libin Chacko Kurian reports. “This trend is particularly exciting
because it opens up opportunities for
he potential for growth access in Africa. “This can hinder customers' businesses to reach a wider customer
and innovation is ability to browse and shop online, resulting base and tap into previously underserved
immense, driven by in a less seamless experience. To address markets,” he said.
“Tthe continent's rapidly this, e-commerce companies can invest in Going beyond the internet and
evolving digital landscape, expanding optimising their platforms for low bandwidth smartphones, the African continent is also
customer base, and increasing consumer connections and explore offline shopping witnessing the rise of social media and
trust in online shopping.” options where feasible,” she said. social commerce. Social media platforms
This is how Lucia Munoz De Blas “At Jumia, we use JForce, our are playing a significant role in shaping the
describes the African e-commerce Independent Sales Agents, to penetrate African e-commerce landscape.
landscape. She is the group chief logistics underserved regions where traditional retail Blas pointed out that African consumers
officer of Jumia, one of the largest is limited,” she added. are leveraging social media channels for
e-commerce marketplaces in Africa. Increasing mobile cellular subscriptions product discovery, recommendations,
Definitely, the e-commerce market in is another factor in Sub-Saharan Africa and and even direct purchasing. “E-commerce
the continent is growing. For instance, it increased from 44 percent in 2010 to 79 platforms are integrating social commerce
Statista reported that e-commerce revenue percent in 2019 and 84 percent in 2021, features, enabling customers to shop
in Africa is expected to show an annual according to the World Bank. seamlessly within their preferred social
growth rate (CAGR 2023-2027) of 13 Thus, Blas reported that mobile media environments,” she said.
percent, resulting in a projected market commerce, or m-commerce, is flourishing Another trend that both Chokshi and
revenue of $59 billion by 2027. in Africa. “With a large portion of Blas noticed is the growth of cross-border
But one of the most important drivers the population accessing the internet e-commerce within Africa. For
of this growth is internet and smartphone primarily through mobile devices,
penetration into the continent. According there is a surge in mobile transactions
to the World Bank, individuals using the and purchases. This trend has spurred
internet in Sub-Saharan Africa increased the development of mobile payment
from 6 percent of the population in 2010 to solutions, making it easier for customers
28 percent in 2019 and 36 percent in 2021. to shop online using their smartphones.”
Evidently, Africa has witnessed a There are several companies, including
significant rise in internet penetration logistics service providers, entering this
rates, opening up vast opportunities for market after getting excited about the
e-commerce. And according to Blas, “The room for innovation and growth. For
increasing accessibility of digital devices example, in May 2023, the Indian SaaS-
and internet connectivity has expanded based logistics management platform
the potential customer base, enabling more provider Shipsy announced expansion
Africans to engage in online shopping.” across Africa. Since the last few quarters,
However, despite the increasing internet Shipsy grew its presence in African
penetration, she pointed out that there are markets by onboarding customers in
still areas with limited or unreliable internet the courier, express and parcel, last-mile

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