Thursday, June 30, 2022
Thursday, June 30, 2022
Home Ecommerce IFC Report Reveals Women Can Contribute Over $ 14 Billion To E-commerce in Africa

IFC Report Reveals Women Can Contribute Over $ 14 Billion To E-commerce in Africa

by Milcah Lukhanyu
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Women and e-commerce in Africa, a  research  done by Digital2Equal, an IFC-led initiative conducted in partnership with the European Commission has revealed that Africa’s e-commerce market could grow by more than $14.5 billion between 2025-2030.

 According to the report, this can be achieved by increasing the number of women selling on online platforms and by providing them with better training and financial support to help them match sales made by men.

It also found that COVID-19 has accelerated the growth of e-commerce and digital entrepreneurship in Africa and that more women have embraced digital business.

 On the other hand, however, the report reveals that more can be done to promote women’s entrepreneurship and help women overcome e-commerce challenges.

For example, e-commerce marketplace platforms are well-positioned to target women-owned businesses with training, and to encourage women’s participation in higher-value segments such as electronics.

In addition, women could also strengthen their businesses by taking advantage of emerging fintech offerings, such as in-platform loans, which women currently access at much lower rates than men.

The report leveraged data from leading e-commerce firm Jumia, as well as from surveys of vendors in Côte d’Ivoire, Kenya, and Nigeria.

Sérgio Pimenta, IFC’s Vice President for the Middle East and Africa. Said e-commerce in Africa is thriving, yet we are already seeing a widening gender gap in the sector.

She added that, IFC’s report not only highlights the gap, but also shows how it might be addressed so that women entrepreneurs can succeed in this important and rapidly growing marketplace.

Juliet Anammah, Chairwoman Jumia Nigeria and Group Head of Institutional Affairs, said, “It is absolutely essential for women to be factored in, given the future of e-commerce. Africa is just at the start of its e-commerce growth trajectory. Now is the time to ensure women entrepreneurs are the leaders of Africa’s digital journey.”

The report shows that although women comprise half of all active e-commerce vendors in Africa, they tend to run smaller-scale businesses and feature prominently in high-competition, low-value segments.

For instance, the e-commerce platform Jumia, just over a third of businesses in Côte d’Ivoire and over half in Kenya and Nigeria are owned by women.

Supporting women entrepreneurs has taken on renewed urgency since the outbreak of COVID-19. In the first year of the pandemic, women-owned businesses in the three countries studied suffered reduced sales of 39 percent, compared to a 28 percent drop for men-owned businesses.

The report Women and E-commerce in Africa is the first large-scale use of platform data in the region to inform the extent of women’s participation on e-commerce and how online platforms can benefit women business owners

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