Digital platforms and e-commerce businesses have been on the rise in Kenya. The country is projected to earn as much as KSh164 billion ($1.5 billion) from e-commerce in 2021 according to Patrick Ndegwa, SEACOM East Africa Business Sales Lead.
Companies are investing heavily in improving their digital infrastructure to gain from the high demand for online shopping as more people shop from their mobile phones and computers. Businesses are determined to give clients personalised experiences and allow customers to use their preferred platforms to settle payments.
Some of the challenges that e-commerce companies face are, supply chain constraints, logistical challenges, and high transport costs. These challenges make some shoppers to choose physical stores rather than online shops.
According to Patrick Ndegwa, e-commerce presents great opportunities to boost the domestic economy and reach international markets. Businesses can easily reach the populous young and tech-savy shoppers through social media platforms.
For businesses to survive in the digital world, it is important that they keep evolving to the changing needs of their clients. One of Africa’s biggest online store, Jumia, is a good example of a company that has evolved in order to stay in business. E-commerce businesses operating in Africa experience several hurdles including poor ICT and logistical infrastructure, low internet connectivity, and inadequate digital literacy that hinder growth.
Patrick Ndegwa believes that the challenges can be overcome given that “seven of the ten fastest-growing Internet populations in the world are in Africa.” Governments need to invest in ICT infrastructure, provide fast internet connectivity, and to equip people with digital skills in order to reap the benefits of e-commerce.
