African e-commerce companies are using “Made in China” to grab market share with affordable goods

The COVID-19 pandemic has sparked a cross-border e-commerce boom in many countries around the world, including a broad growth of e-commerce in sub-Saharan Africa. As the global economy recovers, the question now is: Can this growth be sustained?There is no doubt that 2020 is a watershed year for digital transformation.Africa electricity business operations last year, all over the world blockade to accelerate the digital solutions in most aspects of daily life deployment: the expansion of the Internet e-commerce is an outstanding result, e-commerce company and platform activity and profits are on the rise, development business online retailers and haven’t found himself must do to survive.For example, the e-commerce industry in Latin America, Europe, Asia and Southeast Asia is booming. According to data, more than 600 million people are estimated to make their “first” online transactions in 2021, while e-commerce in the Southeast Asia, Middle East and Africa region grew 36.7 percent to about $385 billion.A recent report by the United Nations Conference on Trade and Development (UNCTAD) predicted that such growth will continue even if the epidemic is brought under control, with e-commerce platforms likely to maintain market share gains, with about 50 percent of consumers planning to continue shopping online more frequently than before COVID-19.However, the growth of e-commerce is unevenly distributed around the world, concentrated in richer countries and regions.In a related note, the UNCTAD report stresses that the benefits of such adoption will depend on the digitalization readiness of individual countries.Growth in e-commerce Use sub-Saharan Africa is particularly vulnerable to limited ICT infrastructure: the INTERNATIONAL Telecommunication Union estimates that 38.2% of individuals in the region use the Internet at least occasionally, much lower than in developing countries (47%) and developed countries (86.3%).Other common obstacles include the high cost of broadband, limited digital training and lack of trust among citizens, a traditional preference for cash, and low PC penetration.Despite these considerations, however, e-commerce in more than a dozen countries saw significant success last year, indicating that growth in this sector can continue to move forward.One notable success story on the African continent, Accra, Ghana, is e-commerce platform Jumia, which reported a 56% increase in transactions after 2021 compared to 2020.TospinoMall in West Africa was established in Accra, Ghana in February 2020, and grew into the largest e-commerce platform in Ghana in 2021. Currently, it is planned to expand to other African countries. The main advantage is to establish its own logistics, express delivery, and overseas warehousing, etc.More than 87% of the goods on the platform are Made in China, 91% of which are set up by Chinese sellers, taking advantage of “Made in China” to seize market share with the advantage of high-quality and inexpensive goods.Although the prospects of the prophase of cross-border electric business platform in South Africa is still in doubt, multiple electric business platform is not yet profitable, but these results suggest that for the company and the future of electronic commerce in the region is full of confidence, because the continent’s population of the world’s second continents, statistical number more than 1.285 billion years earlier, and in recent years is also rising middle class family,Key factors, including the growth of smartphones and Internet penetration, have led to several African e-commerce platforms securing capital in the past two years, with Tospino securing funding last year.More recently, online payment wallets in the wider e-commerce ecosystem have also seen impressive growth, such as Paystack, a Nigerian financial payments company with more than 60,000 merchants in Africa as of March, and MOMO, which has seen a 53% increase in users.The report says its trading volume has increased fivefold from pre-pandemic levels.Logistics companies in South Africa, Nigeria, Kenya, Ethiopia, Rwanda, Egypt and Ghana have also seen a surge in business. In Nigeria, Max-Ng and Gokada abandoned ride-hailing services at the start of the outbreak to focus on logistics,GetBoda, an e-commerce delivery company in Kenya, saw a 150% increase in orders in the first few weeks of the outbreak.The top three cross-border e-commerce platforms in Southeast Asia also launched various measures to meet the growth of Internet consumer demand under challenging conditions a few years ago, making it possible to follow the e-commerce development of developed countries in Asia and Europe today.

Leave a Reply

Your email address will not be published.