Page 7 - LUA July - August 2023 Magterz and Online

INVESTING IN AFRICA
Even though there are mounting challenges,
Blas reported that the current mood of
investing in the African e-commerce
logistics industry is highly optimistic and
promising. “Investors are increasingly
recognizing the immense growth potential
of the African market and the opportunities
presented by the e-commerce and logistics
sectors. Several factors contribute to the
Logistics positive investment sentiment including
stakeholders need to the rapidly expanding e-commerce
market, favourable demographic trends,
digitise and automate infrastructure development, growing
their daily delivery investor confidence and supportive
processes to deliver government policies,” she said.
She added, “With the right
on these rapidly investments and partnerships, the
evolving customer industry has the potential to drive
expectations. economic development, employment
opportunities, and technological
SOHAM CHOKSHI advancements across the continent.”
including partnerships with local logistics SHIPSY Chokshi also thinks that the need to
providers and the use of technology like rapidly digitise supply chain processes
mapping systems and GPS tracking. These which offers secure online transactions to build resiliency and reduce overall
initiatives help optimise last-mile delivery, and protects against fraud. “By leveraging logistics costs will further generate massive
improve efficiency, and ensure prompt JumiaPay, shippers can mitigate investment opportunities in Africa.
delivery to customers' doorsteps.” payment risks and ensure a trustworthy “The greater need for integrated
Africa comprises diverse countries with and reliable payment system for their logistics services, increasing demand for
varying regulations, customs processes, transactions,” she said. online deliveries powered by growth in
and languages. Blas pointed out that While e-commerce in Africa has the e-commerce sector and the need to
navigating the complexities of cross-border made significant progress in enhancing improve transportation infrastructure as
logistics and compliance can be daunting customer experience, there are still a few aimed by Africa Continental Free Trade
for shippers. drawbacks that can impact the overall Area (AfCFTA) will attract significant
“Jumia's extensive experience in customer journey. investments from both public and private
operating across multiple African countries entities,” he said.
enables it to navigate these challenges CUSTOMER EXPERIENCE Meanwhile, Tempest reminded that
effectively. The company has established For instance, while mentioning the investments will only happen if there is
partnerships and developed streamlined challenges of delivery delays and security solid research done on the market. He said,
processes to facilitate cross-border concerns, Blas noted that by actively “We try to encourage better research. If
logistics and ensure compliance with local addressing these drawbacks, e-commerce you have independent research or at least
regulations,” she said. platforms can improve the overall by the government, it is very much better
On the same line, Tempest noted that customer experience. to attract investments. If investors don't
the biggest challenge in doing cross- Meanwhile, Chokshi said, “Modern see research, then they start not to be very
border e-commerce business in Africa consumers want to know where their interested in investing.”
is customs facilitation. “Even though we orders are, who is delivering them and The African continent has a big
have smart contracts with blockchain and the exact ETA of the delivery. They want untapped potential while looking from
e-documentation, which are very efficient their favourite brands to recommend the e-commerce point of view. However,
and seamless, when it comes to the delivery time slots that suit them. At the there are many things to get corrected
frontiers, officials many times want to see same time, end customers are increasingly and transformed, particularly the logistics
the physical documents. A document sent looking for flexible and digital payment infrastructure that supports it. Even
by email is not enough. This delays things options. Even when it comes to after-sales though it is all positive news that we hear
very much,” he said. services, like the installation of home from the stakeholders there is a lot to
In Africa, shippers often face payment goods items, customers want a quick be done on the ground both on physical
and fraud risks when operating in the resolution. Logistics stakeholders need to infrastructure as well as digital. However,
African e-commerce market. Blas noted digitise and automate their daily delivery doing research and keeping customer
that Jumia addresses this by providing processes to deliver on these rapidly experience at the centre is the key to
a secure payment platform, JumiaPay, evolving customer expectations.” finding the right solutions.

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