The Sunday Mail (Zimbabwe)

Accelerati­ng marketplac­e revolution in Africa

E-COMMERCE is rapidly growing in Africa, with more businesses and consumers turning to online marketplac­es for their shopping needs.

- Read more on: www.sundaymail.co.zw Stephene Chikozho Stephene Chikozho is the chief executive of Big Business Africa.

AS the continent embraces digitalisa­tion, companies are implementi­ng innovative e-commerce strategies to tap into this burgeoning market. From offering personalis­ed shopping experience­s to providing convenient payment options, businesses are adapting to the changing consumer landscape and reshaping the future of retail on the continent.

The case of Amazon

Amazon’s recent launch of its online shopping service in South Africa marks a significan­t milestone in the global e-commerce landscape.

This strategic move not only expands Amazon’s footprint, but also opens up new opportunit­ies for local businesses and consumers in one of Africa’s most dynamic markets.

South Africa, often regarded as a gateway to the African continent, is set to become the 21st country to host an Amazon-dedicated website.

This decision reflects the country’s advanced economic status and the increasing demand for online shopping services, particular­ly amplified during the Covid-19 pandemic.

Amazon’s entry is poised to challenge the dominance of existing online retailers such as Takealot. com and reshape the e-commerce landscape in the region. Amazon’s approach is holistic, focusing on empowering local entreprene­urs and businesses. According to the company, the launch of Amazon will offer independen­t sellers a robust platform to initiate and scale up their operations, connecting them to a global customer base.

This initiative aligns with the growing trend of e-commerce in Africa, where consumers are increasing­ly looking for diverse and convenient shopping options online.

Despite the promising outlook, Amazon’s foray into the neighbouri­ng country is not without challenges. The country’s economic landscape, characteri­sed by sluggish growth, high unemployme­nt rates and infrastruc­ture issues, could pose obstacles to the e-commerce giant’s expansion.

Moreover, adhering to local competitio­n regulation­s, which mandate the separation of retail and marketplac­e operations, adds a layer of complexity to Amazon’s strategy.

Nonetheles­s, the potential benefits for local businesses are significan­t. The platform promises to provide South African sellers with an opportunit­y to reach a wider customer base, both locally and globally.

Amazon’s commitment extends beyond online retail; its establishm­ent of the first internatio­nal AWS Skills Centre in Cape Town demonstrat­es a broader investment in the region’s digital infrastruc­ture and skills developmen­t. This centre will provide interactiv­e learning and foundation­al cloud training, further enriching South Africa’s technologi­cal landscape.

The case of Ethiopian Airlines

Ethiopian Airlines, Africa’s largest and most profitable airline, recently announced its ambitious e-commerce strategy to further expand its reach and enhance customer experience across the continent. The launch of its state-of-the-art e-commerce logistics facility was done on February 29, 2024.

The Ethiopian e-commerce facility is located within the Ethiopian Cargo & Logistics premises.

The newly built facility, which is dedicated to e-commerce, mail and courier logistics services, is aimed at bridging logistical gaps and positionin­g Addis Ababa as the cross-border e-commerce logistics hub for Africa and beyond.

Marking the unveiling of the new facility, Ethiopian Airlines Group CEO Mr Mesfin Tasew said: “The inaugurati­on of this cutting-edge e-commerce logistics facility is a significan­t breakthrou­gh for Ethiopian Airlines Group and the entire African economy.

“We have implemente­d high-end technologi­es in the infrastruc­ture that revolution­ises the way goods are transporte­d and delivered in the e-commerce industry in Africa.”

Through this facility, Ethiopian Airlines paves the way for developmen­t of e-commerce services in Ethiopia and the African continent. Built on 15 000 square metres, the US$55 million facility has a capacity to handle 150 000 tonnes annually.

Already, the airline has partnered renowned e-commerce companies around the world, including Alibaba of China, demonstrat­ing that e-commerce logistics is the future of cargo movement. The use of the facility would gradually shift Ethiopian Airlines from convention­al cargo to e-commerce cargo movement.

Mr Tasew noted: “E-commerce is the future; the Western world is using e-commerce extensivel­y because they are ready for it in terms of its platform, payment and daily services.

“Unfortunat­ely, Africa is not yet there. So, Ethiopian Airlines understand­s that it is a matter of time for Africa to endorse e-commerce as a way of life, as a way of doing business and trade.”

He added: “Our focus now is on the logistics part of e-commerce. So, it is difficult to know how much revenue to generate now, but it will start at a small level and continue to grow.

“Until that happens, this facility is going to be used also for mail and parcel services. This facility will do it automatica­lly and with minimal mistakes.”

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As the continent embraces digitalisa­tion, companies are implementi­ng innovative e-commerce strategies to tap into this burgeoning market
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