Page 32 - Abyssinia Business Network ABN August 2019

THERE’S NEED Home to 54 countries, business sectors powering the
with Nigeria and South
engines of commerce and trade
FOR MORE Africa having the biggest in the continent. It has brought
economies, the continent has
many untold opportunities for
DISRUPTION a population of 1.2 billion both the consumers and the micro,
people, projected to rise to
small, medium enterprises. In
2.5 billion by 2050. It is the
Nigeria for instance, Jumia
IN second most populated after paved the way for e-commerce
in 2012, provided consumers
Asia and second growing
AFRICA’S economy in the world after access to hundreds of thousands
of products, and expanded access
East Asia, with a 3.5%
for discerning entrepreneurs
annual growth rate. Average
TECH SCENE age is about 20 years, and who quickly took advantage of
the many unique opportunities
30% of its population make
up the middle class which presented by these platforms,
is expected to grow by 80% to reach more consumers
between 2020 & 2030. An and sell more products. The
estimated 473 million people convenience of e-commerce
are connected to the internet made a compelling case for early
in Africa, which represents adoption of online shopping by
36% of its population, while customers who until then only
By Olukayode Kolawole 1 billion people who have shopped from brick and mortar
access to mobile phones, stores.
represents 80% of its
For most people living outside Africa, they population. The bold move by Jumia and
imagine the continent as the home of poverty, other ecommerce players paved
corruption, internet fraud, infrastructure There are a number of the way for many e-commerce
deficit, and everything that describes under- laudable achievements the startups in the country today.
development, marginalization, oppression, continent has earned for Although many of these
bad leadership, insecurity, diseases, and many itself. These achievements, platforms have been phased out
more. Although the continent is truly beset with although rarely spoken of, due to a number of challenges,
some perennial development issues, some of have positioned the continent the truth still remains that the
these notions are preposterous and not entirely on a global map, earned it story of how Jumia led the way
peculiar to Africa. No doubt, for a continent positive recognition from for e-commerce in the country
that is richly blessed with numerous natural First World countries, continues to reverberate the
resources, the economies of the countries within changed its narrative to entire sector, and has today,
it should be enviable and have the capacity to something better and more yielded many positive results.
truly compete with the First World countries. appealing, and made it a It was not too long after Jumia
“ for business investment, expanded its operations to 14
launched in Nigeria that it
sought-after
destination
leisure and entertainment.
other African countries, in which
it has operations today, covering
This article will dwell on
An estimated 473 million the business that have 75% of the entire continent’s
investment
GDP, and about 75% of internet
opportunities
people are connected to the changed the fortunes of the users.
internet in Africa, continent, and how these The Case of e-commerce and
businesses are impacting and
“ lives in Africa. Yet, the continent is still
Jumia
transforming the quality of

E-commerce is one of the
perceived to be growing slowly
30 Abyssinia Business Nework ነሃሴ 2011 / August 2019