Page 27 - LUA May June 2024 for Website

different market segments and fostering
economic development."

E-COMMERCE CHALLENGES
FOR AFRICA
Africa's e-commerce landscape is
brimming with potential but there are
challenges that we still to overcome,
according to Dufay of Jumia.
• Infrastructure development: Reliable
internet access and efficient physical
road networks are crucial. While Africa
is making strides in this area, there's still
room for improvement, especially in rural
areas which generally have poor road
infrastructure and inefficient addressing
systems.
• Digital literacy: Equipping consumers
with the knowledge and confidence to
shop online is essential. Jumia utilises
innovative solutions like J-Force
(independent sales consultants) to bridge
the digital divide.
• Payment methods: Cash on delivery
remains dominant but trust in digital
payments is growing. Jumia offers
enhance warehouse staff efficiency and innovative and secure payment options
reduce packaging costs." to create a seamless experience for
consumers.
SOCIAL COMMERCE AND Dufay says: "Jumia, as a pioneer in
AFRICA the African e-commerce space, is well-
Social commerce is predominant in positioned to play a leading role. We're
Africa's e-commerce landscape with constantly innovating and expanding our
micro-businesses leveraging platforms offerings, with a focus on:
like Facebook, WhatsApp and Instagram • Reaching underserved communities:
to sell products online, adds Wamola of We provide Jumia initiatives like J-Force are ensuring
GSMA. "Our research at GSMA shows that customers with everyone has access to the benefits of
60 percent of micro, 49 percent of small great value, broad e-commerce, regardless of their location.
and 33 percent of medium enterprises use More than 50 percent of the population in
social media services exclusively to sell selection including sub-Saharan countries lives in rural areas.
online versus online marketplaces and international and • Empowering African businesses:
their own websites. local products and a E-commerce and marketplace like
"Alongside social commerce, other Jumia provide a platform for African
models such as marketplaces catering to both convenient delivery entrepreneurs to reach millions of
B2B and B2C and direct sales on company experience. potential customers and grow their
website markets are gaining traction. business, create jobs.
These diverse models cater to the varied ROBERT KOEN • Driving financial inclusion: Through
preferences and needs of African consumers, AMAZON JumiaPay, which is a strong enabler of our
highlighting the dynamic nature of the e-commerce business and collaboration
e-commerce ecosystem in Africa." sector, target small retailers and street with financial institutions, we will continue
vendors, addressing their specific needs to offer inclusive payment solutions.
B2B OR B2C - WHAT WORKS for efficient procurement and sales (e.g. "The population of Africa is expected
IN AFRICA Wasoko). On the other hand, direct-to- to reach 2.5 billion in 2050 with huge
Both B2B and B2C segments draw attention consumer B2C platforms tend to serve needs for their everyday shopping, and
in Africa for distinct reasons, says Wamola urban and affluent consumers, offering a e-commerce can be an enabler and a
of GSMA. "B2B e-commerce platforms, wide range of products and convenience. solution for the consumers. We are still
particularly those digitising the distribution Both segments play integral roles in driving just at the beginning of the story of
layer of the fast moving consumer goods e-commerce growth in Africa, catering to e-commerce in Africa."

MAY - JUNE 2024 LUA 25