E-commerce in Africa: How to overcome the constraints AIG and JUMIA guests of the 4th Forbes Africa Forum
Jeremy Hodara, Cofounder of Africa Internet Group, participated Tuesday, July 21st at the 2015 Forbes Africa Economic Forum. The Co-CEO of the Internet industry leader in Africa responsible among others for JUMIA, was one of the panel speakers on the topic of E-commerce in Africa: How to overcome the constraints.
“With over 700 million mobile subscribers -more than the United States and Europe- an exploding connection rate and income from the Internet, which already accounts for 4% of Africa’s GDP -more than three times the share in developed economies-“ (www.forumforbesafrique.com), the internet quickly weaves its web in Africa. So, in the face of very optimistic forecasts, the 2015 Forbes Africa Forum proposed to clarify the conditions for a rational development of the Internet in Africa. The third panel of the Forum was dedicated to e-commerce and the constraints to its development. As one of the three speakers of this panel, Jeremy Hodara explained the methods and vision of AIG. The group that is responsible for ten companies in over 30 countries in Africa, including JUMIA, the leading online shopping destination on the continent.
Present in 12 African countries, JUMIA was launched in Côte d’Ivoire in 2013. In just two years of existence, the company managed to strongly impact the economic and social landscapes of the country. The success of JUMIA benefits businesses and small entrepreneurs who see their potential market expand and their businesses grow. Similarly, the big brands still absent on the web, have now the opportunity to adapt and reach new customers through the innovative concept of “Shop in Shop” and easily and rapidly open an online store on JUMIA. To consumers, JUMIA offers a new consumption experience with more choice, quality and convenience, and lower prices. Finally, the e-retailer contributes simultaneously to government efforts against dear life and for universal access to the Internet and ICTs. As proof, the company sold more than 8,000 mobile phones in one week, during its Mobile Week last June. All phones were highly discounted and provided with a free MTN SIM-card and free data for three months.
Although JUMIA and AIG have managed to overcome a lot, some obstacles remain. Just like many African countries, Côte d’Ivoire awaits the establishment of a clear legal framework for the sector. In addition, the cost of broadband, the low banking penetration coupled with reluctance to pay online, illiteracy and logistical constraints remain as persistent subjects to ponder. Pondering subjects that still do not alter specialists forecasts which maintain an optimistic outlook. According to estimates, the online commerce could represent 10% of sales in the most dynamic African economies and reach $ 75 billion in annual transactions in 2025.
The French magazine Forbes Africa, held the 4th edition of its annual economic forum in Brazzaville. The Forbes Africa Economic Forum 2015 was attended by several African heads of state, including Mr. Alassane Ouattara, President of the Republic of Côte d’Ivoire as well as many influential African and international personalities from the economic and political worlds.
