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Nigeria, South Africa, Kenya Lead in E-commerce in Sub-Saharan Africa

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A new research conducted by Visa has shown that Nigeria, South Africa and Kenya are the largest e-commerce contributors in Africa in the last three years.

In the report titled ‘Visa Research Reveals SA, Nigeria and Kenya Are Top Drivers of E-commerce Volumes in SSA’, said Ghana was also showing signs of growth after replacing Kenya in the top three contributors in 2020.

The report noted that while Sub-Saharan Africa might be one of the smallest regions of e-commerce globally, it showed consistent growth potential.

During the COVID-19 lockdown, the region’s new e-commerce users grew by 5 percent when compared to the active base in the preceding year.

The report said, “The most important e-commerce enablers – the ability to access financial services, digital payment channels and digital infrastructure – are starting to take hold across SSA.

“Although cash may remain the dominant payment instrument in the region for now, there are signs that this will eventually change.

“In Nigeria, for example, cash is still particularly prevalent, while in Kenya mobile money is most popular and many South Africans choose cards as their main payment methods.”

The COVID-19 pandemic had pushed consumers towards digital payments in the key e-commerce markets for SSA, it stated.

Lineshree Moodley, the Head of Visa Consulting and Analytics in Sub-Saharan Africa, said, “The three leading markets in SSA are starting to mature, providing the region with an established foundation and, when twinned with the growing penetration of e-commerce, it offers players in the payment space an opportunity they can capitalise on while helping to further accelerate the expansion of e-commerce in the region.”

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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E-commerce

Jumia Launches Integrated Warehouse in Kenya to Improve Logistics Operations

Nigeria and Africa’s leading e-commerce store Jumia, has launched an integrated warehouse and logistics network facility in Nairobi to improve operations in Kenya

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Nigeria and Africa’s leading e-commerce store Jumia, has launched an integrated warehouse and logistics network facility in Nairobi to improve operations in Kenya

This new warehouse will transform Jumia’s logistics operations by ensuring faster product delivery and subsequently improving customers’ shopping experience.

The 11,000-metres squared warehouse and network facility is strategically positioned and centrally located along Mombasa road, which is closer to the airport as well as the city center, according to the company.

It allows Jumia to leverage on the new Nairobi Expressway to enhance delivery time and improve efficiency. Because of the proximity, the newly built warehouse will eliminate the need to transport items from warehouses to sorting centers, reducing the operational cost and gas emissions of first-mile deliveries.

Speaking on the newly launched warehouse, the CEO of Jumia Kenya Juan Seco stated that the facility will enable the company to be more efficient and meet future needs as the company grows.

In his words, “The new integrated facility has enabled us to converge our multiple warehouses and network operations under one roof.

“This will help us to improve our fulfilment operations to be more efficient and scalable thus taking care of our future needs as the business continues to grow. We shall be able to offer more products across different categories and deliver them faster to our consumers”.

Jumia’sintegrated facility also provides improved working conditions for employees, such as more workspace and a more convenient location in terms of accessibility.

Speaking on how the facility will improve Jumia’s sustainability practices, Jumia Services Country Manager, Ankur Agarwal, said: “The convergence of our operations has helped us to reduce up to 15 truck trips per day, enabling us to reduce carbon emissions significantly. We will continue to look for opportunities to contribute positively to the environment.”

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NGOs Urge EU to Reject Amazon’s Proposal to End Anti-trust Charges, Citing Loopholes

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A group of 11 non-governmental bodies has urged the EU regulators to reject Amazon’s proposal to halt anti-trust charges, citing loopholes.

The NGOs who wrote the EU, disclosed that the proposals were too vague, which leaves room for evasion and abuse by the e-commerce company.

They further urged the EU to force Amazon to split its marketplace from its retail and logistics operations in order to address concerns about its dominance and control over interrelated services.

The statement reads “We urge the European Commission to reject Amazon’s commitments outright and in full, and instead continue vigorously to pursue its antitrust cases against Amazon, imposing remedies and penalties (on the Commission’s own terms) as necessary.

“They are weak, vague, and full of loopholes, leaving too much room for evasion and abuse by Amazon. Moreover, the proposed limitation of these commitments to five years, or indeed any time horizon at all, is unjustifiable”.

The European Union (EU) had earlier charged Amazon with anti-trust charges, where it disclosed that the e-commerce platform misused its position to compete against third-party businesses by misusing seller data.

In a response to the charges filed against the company, it has been consistently making some significant commitments in an attempt to escape fines from the EU as a result of its breach of seller data.

The company admitted to claims from the EU and has pledged to avoid using private seller data in situations where there’s competition with Marketplace shops, whether it is obtained through automated tools or employee access.

Amazon trying to leave no stone unturned has also promised “non-discriminatory” terms for third parties selling to Prime subscribers, including a choice in delivery and logistics services.

The e-commerce platform through one of its commitments, vowed “equal treatment” when ranking sellers in the Buy Box section that will enable consumers to quickly purchase goods.

The European Commission is asking for public feedback on Amazon proposals that theoretically give third-party sellers a better chance of competing with Amazon’s direct sales.

Comments on the proposals will remain open until September 9th. Whatever conditions the EU accepts, will remain effective for five years with oversight by a trustee reporting to the Commission.

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Jumia Partners Zipline To Start Using Drones For Delivery Services

Jumia has partnered with a drone logistic company Zipline to integrate the use of drones in its delivery

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After a successful pilot program in Ghana, Africa’s largest e-commerce company, Jumia has partnered with a drone logistic company Zipline to integrate the use of drones in its delivery. 

Thousands of items will be available for delivery, from fashion products to health, electronics, and beauty items. This method is expected to help Jumia to deliver its products more conveniently and efficiently, Investors King understands.

The service will be available for rural and remote areas in Africa which could be hard or impossible to reach through conventional methods. 

The pilot program which was carried out a few months ago covered approximately 2,500 kilometers (1,553 miles) with several products being successfully tested for delivery. Many items were delivered at a distance of up to 85 kilometers(Approximately 60 miles) in less than one hour.

According to Daniel Marfo, senior vice president of Zipline, “ (this partnership) will make shopping on Jumia even more convenient, sustainable and accessible for its customers.”

Jumia has an extensive logistic network in 11 African countries consisting of more than 30 warehouses and more than 3,000 drop-offs and pick-up stations. 

Zipline is a drone delivery company headquartered in California, United States. It uses advanced and sophisticated technology for delivery services. 

In the second quarter (Q2) of this year, Jumia delivered 60% of physical goods within a day, up from 57% in the first quarter. The growth has been made possible by the company’s increasing fleet of delivery vehicles and warehouses. Last month, it launched ’20-minute deliveries’ in Lagos, Nigeria to deliver groceries and food.

When the Jumia drone delivery service becomes operational, it will change the face of logistics in Africa, particularly in Ghana and Nigeria where Jumia has its largest market bases. Most importantly, it will give Jumia the leverage to better serve its customers and subsequently increase the company’s revenue. 

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