2018 Africa Ecommerce Report

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Thank you for downloading this report. We hope it will help you take the next step in selling online in Africa.

The Ecommerce Foundation is an independent organization, initiated by worldwide national ecommerce associations as well as online and omnichannel selling companies from industries such Jorij Abraham as retail, travel & finance. Our mission is to foster global digital trade as peace is the natural General Manager effect of trade. By facilitating digital commerce we hope to make the world a slightly better place. Ecommerce Foundation

We especially would like to thank our Report Partners: namely Accenture Interactive, Mazars, Teleperformance, SAP, and Safe.Shop. Without their support, this report would not have been created. Jorij Abraham has been active in the international ecommerce If you like our reports, please visit our report page on www.EcommerceWiki.org. On this page, community since 1997. He was an Ecommerce Manager at you will find a large collection of Ecommerce Country Reports for free. Bijenkorf, TUI and Sanoma Media and Director of Consulting at Unic.

From 2013 to 2018 he has been Director of Research & Advice at Thuiswinkel.org and Ecommerce Europe (the Dutch and European Ecommerce Association)

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Teleperformance, global leader in outsourced omnichannel CX Mazars is an international, integrated and independent Accenture Interactive, part of Accenture Digital, helps the Management, serves as a strategic partner to the world’s organization, specializing in audit, accountancy, advisory, tax world’s leading brands transform their customer experiences largest companies cross-industry. Its customer care, technical and legal services. As of 1st January, 2018, Mazars operates across the entire customer journey. Through our connected support, customer acquisition, consulting & analytics, digital throughout the 86 countries and territories that make up its offerings in design, marketing, content and commerce, we integrated business service solutions and other high-value integrated partnership. Mazars draws upon the expertise of create new ways to win in today’s experience-led economy. specialized services ensure consistently positive customer 20,000 women and men led by 980 partners working from Accenture Interactive is ranked the world’s largest digital interactions that are reliable, flexible and intelligent. 300 offices worldwide. We assist clients of all sizes, from agency in the latest Ad Age Agency Report. The Group’s 223,000 employees, operating from 350 contact SMEs to mid-caps and global players as well as start-ups and centers in 80 countries, support billions of connections public organizations, at every stage of the development. annually in 265 languages and enhance the customer experience with every interaction.

Safe.Shop is the global trust mark for online shopping, helping SAP Customer Experience is a business unit of SAP, consumers and merchants shop & sell with confidence at providing omnichannel customer engagement and commerce home & abroad. Safe.Shop checks if online stores are reliable solutions that allow organizations to build up a contextual by verifying if they comply with national laws and/or the Global understanding of their customers in real-time, deliver a more Ecommerce Code of Conduct. The Safe.Shop logo ensures impactful, relevant customer experience and sell more goods, that consumers have the right to return the goods, privacy is services and digital content across every touch point, channel protected, consumers will get the good(s) they paid for, the and device. Through its state-of-the-art customer data payment is safe, consumer rights are protected, prices are management, context driven marketing tools and unified clear and real, and any complaints will be listened to and commerce processes, SAP Customer Experience has helped handled properly. Safe.Shop is issued by the Ecommerce some of the world’s leading organizations to attract, retain and Foundation. grow a profitable customer base.

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www.ecommercefoundation.org “Trustmarks have the greatest effect on perceived trustworthiness, influencing respondents’ beliefs about security and privacy, general beliefs about firm trustworthiness, and willingness to provide personal information.”

Currently, online shops have to Ecommerce in Africa hindered by a invest heavily in consumer trust. lack of trust People do business with those that More than two-thirds of the African they like, know, and trust. For online ecommerce startups in 2017 were in shops to instill trust fast in problems and not making a profit. A consumers visiting their website is core reason was a “shortage of trust”. crucial. Entrepreneurs want to really Jorij Abraham distinguish themselves from “ghost Cheaper trust alternative for Director, Ecommerce shops”. That’s shops that collect marketplace available: Trustmarks Free version available Foundation your money but don’t deliver the Fortunately, cheaper alternatives for The free version of Safe.Shop is product. online shops are now available, such available for all online shops. It “Our mission is to foster as trustmarks. A trust seal or badge on includes a Consumer Review Currently merchants have to invest a site can mean that the company the System, a Trust Score for the online global digital trade as peace is heavily into making their website consumer is buying from actually shop and the Safe.Shop badge. the natural effect of trade. We trusted. They do that by e.g. putting exists, that consumer rights are are convinced that introducing their products on marketplaces such protected, that the product is not fake Online shops receives three the first Global Trustmark as Amazon, eBay, or Alibaba. and that consumer reviews are real. Safe.Shop Trust Badges: However, these marketplaces take Safe.Shop will help reaching 5-20% of their generated sales. Safe.Shop, the first truly global trust our goal.” Also, using trusted payments like mark now available for free Consumer review system PayPal come at high costs. The Ecommerce Foundation introduced Safe.Shop as a national and cross-border trustmark initiated by Trust score Of consumers who never many national ecommerce associations buy goods/services worldwide. The Ecommerce online, the #1 reason is Foundation offers this service as a means for its purpose to foster global Safe.Shop Badge trust (49%). digital trade both in Africa and abroad. Source(s): Aiken, K., Boush, D. (2006); CIGI-IPSOS (2017); Ecommerce in Africa struggles for funding, trust, logistics, The Paypers

www.ecommercefoundation.org Countries Included

Nigeria South Africa Egypt Algeria Morocco Kenya Angola Ghana Ethiopia Sudan Tanzania Tunisia Table of Contents

8 15 24

www.ecommercefoundation.org Introducing: Africa Population* in Africa continues to increase

761,834,959 744,864,938 728,015,863 711,278,830

680,600,000

657,900,000

2013 2014 2015 2016 2017 2018(f)

Source: Ecommerce Foundation; Worldometers, 2018 *Countries incl: Nigeria, South Africa, Egypt, Algeria, Morocco, Kenya, Angola, Ghana, Ethiopia, Sudan, Tanzania, Tunisia

www.ecommercefoundation.org Nigeria boasts the largest population, approx. 195 million

195,875

107,534 99,375

57,398 59,091 50,950 36,191 41,511 42,008 11,659 29,463 30,774

Tunisia Ghana Angola Morocco Sudan Algeria Kenya South Tanzania Egypt Ethiopia Nigeria Africa

Source: Ecommerce Foundation; Worldometers, 2018

www.ecommercefoundation.org Over 38% of the population is between 0-14 years old

AGE STRUCTURE Age structure of the selected countries 2018(f) Female population vs. Male population

38.4% 50.15% 49.85% 34%

19%

11.7%

3.8%

0-14 15-24 25-54 55-64 65+

Source: Ecommerce Foundation; CIA World Factbook, 2018 Countries incl.: Nigeria, South Africa, Egypt, Algeria, Morocco, Kenya, Angola, Ghana, Ethiopia, Sudan, Tanzania, Tunisia

www.ecommercefoundation.org Africa continues to urbanize rapidly

Urban population growth Rural population growth 5.39% 5.00% 4.78% Africa’s urban transition 4.39% overlaps with a 4.28% demographic transition- moving from high 3.51% mortality and high fertility to low mortality and low fertility-which is occurring 2.71% 2.77% across huge swathes of 2.36% 2.28% the continent. Urban 2.16% centers lead this demographic transition, 2.04% 2.10% 2.01% 1.93% 1.95% with its associated 1.85% 1.40% demographic dividend a positive factor for 1.04% economic development. 0.90% 0.51% - Uneca 2017 0.17% 0.10% -0.16% Nigeria South Africa Egypt Algeria Morocco Kenya Angola Ghana Ethiopia Sudan Tanzania Tunisia

Source(s): Population Pyramid; Uneca; Ecommerce Foundation 2018

www.ecommercefoundation.org GDP in dollars (USD) is forecasted to increase in 2018

GROSS DOMESTIC PRODUCT ($ USD) GDP (trillions) & Growth Rate, 2014 – 2018(f)

Gross Domestic Product (GDP), Year Growth Rate YoY trillions of Dollars

2014 USD $1.980 5.9%

2015 USD $1.822 -8.7%

2016 USD $1.587 -14.8%

2017 USD $1.646 3.6%

2018(f) USD $1.703 3.4%

Source(s): IMF; Quandl, 2017

www.ecommercefoundation.org Morocco ranks best for Ease of Doing Business Index

The LPI overall score reflects perceptions of a country's logistics based on, The E-GDI presents an assessment of the website development patterns in a among other things, efficiency of customs clearance process, quality of trade- and country, incorporates access characteristics, such as infrastructure and educational transport-related infrastructure and ease quality of logistics services. levels, to reflect how a country is using information technologies to promote access and inclusion of its people. The Ease of Doing Business Index: Higher rankings (low numerical value) indicate better, usually simpler, regulations for businesses and stronger protections The Internet Inclusivity Index is based on the affordability, availability, relevance, of property rights. and readiness categories for Internet.

Ease of Doing Country Logistics Performance Index E-Government Development Index Internet Inclusivity Index Business Index

Nigeria 110 145 143 63.9 South Africa 33 82 68 73.9 Egypt 67 x 144 65.4 Algeria 117 166 130 55.8 Morocco 109 69 110 66.2 Kenya 68 80 122 63.4 Ghana 106 120 101 62.2 Tanzania X 137 X 54.6 Tunisia 105 88 80 x

Source: The Economist Intelligence Unit; WorldBank; DoingBusiness; United Nations, 2018

www.ecommercefoundation.org Ecommerce in Africa In 2016 you stated that developing semi-informal firms – educating on the steps Interview countries were not taking full advantage necessary to get online and successfully sell of the ecommerce sector. Do you think in marketplaces. But it is a long an arduous this has changed in the two years process unless the small firms are already between then and now, and if so what has relatively advanced: has in place formal driven this change? systems of production and management and “…ecommerce is serving a preferably experience of exporting. growing niche of middle-class This is still very much the case and is evident in our interactions with the public and The truth is that for most small Africa firms Africans looking for great private sector in Africa. The countries with they are producing goods which local deals on international James Howe large domestic markets – South Africa, consumers don’t see the point of buying Senior Adviser International Nigeria, Kenya, Morocco, Senegal, Ghana online. For an African to buy African goods in products.” Marketing and Branding, all have marketplaces which are growing the most part they want to see and touch the International Trade Center fast. It is not clear to what extent they are product. The irony is that much more trust is truly profitable. But the focus is clearly given to foreign brands – those products of This isn’t the outcome dreamed of in serving a local domestic market and urban luxury and prestige. The consequence is development circles. We want to see the areas, where a new middle class is looking that to a greater or lesser degree potential of digital realised in the form of to the benefits of ecommerce - principally to ecommerce is serving a growing niche of lifting up the competitiveness of African firms source luxury goods at low prices. And middle-class Africans looking for great deals – able to understand and design better increasingly in a growing niche for time- on international products. products that will sell, access international pressed professionals seeking convenience. James leads advisory work on international marketplaces without needing to hand over Most countries have fast food delivery marketing, branding and ecommerce in the their goods to middlemen who keep most of Sector and Enterprise Competitiveness section through mobile applications – and this offers the value on the way to the consumer. of ITC. Project work involves working with some expansion into groceries and other institutional partners and groups of SMEs in convenience goods. A number of stakeholders are also hoping developing and least developed countries, that ecommerce can unlock the door to helping them to acquire the capabilities for But the vast majority of Africa is yet to see greater integration in African regional export marketing activation. ecommerce arrive in the form it is known markets. Today the Regional Economic outside of Africa. In the meantime Communities have had very limited success James is programme manager for ITC’s “E expectations are high – and getting higher – in boosting intra-African trade. A new vision Solutions”, which enables small enterprises that ecommerce offers a route to lucrative from developing countries to better access has been launched by the African Union to market opportunities even for businesses international ecommerce. create an African Continental Free Trade starting at the bottom of the pyramid. We Area (AfCFTA) and the debate is alive on if have had experience working with and how ecommerce can support this.

16 www.ecommercefoundation.org It must be possible – but it will take product strategy – understanding what Interview solutions that are uniquely African to products can sell to which markets. Being succeed, just as M-PESA solved an African able to manage production and inventory. problem about the ‘unbanked’ and in doing Support accessing payment solutions. Help so led to a world-leading capability in mobile in collaborating with other firms on shared money. Africa – and African entrepreneurs – logistics to reduce costs. And the big one – have to identify a burning problem and work business models and access to financing. out their own appropriate way of solving it. When looking at the regulatory/policy We may like to suggest some ideas or environment in South Africa, which areas “Africa – and African James Howe inspiration. The innovation should probably do you feel could be improved upon to Senior Adviser International be “frugal” – low cost and the technology help in developing/growing the entrepreneurs – have to Marketing and Branding, “appropriate” so it works for and is affordable ecommerce market? International Trade Center for the vast majority of Africans. identify a burning problem The two main points are: and work out their own The issue to be solved is perhaps one of visibility and fluidity of local and cross-border • Liberalisation of financial intermediaries appropriate way of solving it… pricing and efficient logistics services that and cross-border flows of small monetary could help smallholder farmers and sums – including mobile money. The innovation should producers of goods to collaborate and sell – probably be “frugal” – low probably using mobile money – easily across • Increased attention to trade facilitation – James leads advisory work on international borders. When (not if) this starts to happen enabling small parcels and lower value cost and the technology marketing, branding and ecommerce in the Sector and Enterprise Competitiveness section there will be a boom in small firms and goods to flow unimpeded across borders. “appropriate” so it works for of ITC. Project work involves working with entrepreneurs doing African ecommerce for institutional partners and groups of SMEs in Africans. and is affordable for the vast developing and least developed countries, helping them to acquire the capabilities for Looking to African nations, where do you majority of Africans.” export marketing activation. believe that capacity building is most needed in order to push the growth of James is programme manager for ITC’s “E ecommerce trade? Solutions”, which enables small enterprises from developing countries to better access Understanding different aspects of international ecommerce. business formalism as they relate to ecommerce. This starts with having a

17 www.ecommercefoundation.org Internet access continues to spread rapidly through Africa

43.13% 39.92%

28.73% 24.98%

2015 2016 2017 2018(f)

Source(s): Statista; Internet World Stats; Ecommerce Foundation, 2018 *Countries incl: Nigeria, South Africa, Egypt, Algeria, Morocco, Kenya, Angola, Ghana, Ethiopia, Sudan, Tanzania, Tunisia

www.ecommercefoundation.org Majority of population (61%) uses mobile for internet access

DEVICE USAGE FOR ONLINE Share of the population using each device for Internet access, 2018 Average share of the African population* using each of the different social media platforms:

66.9% 7.57% 37.33% Desktop Tablet 5.45% 0.83% Mobile 60.79%

2.09% 18.3% 0.08%

Source(s): Statcounter; Statista; eMarketer, 2018 *Countries incl: Nigeria, South Africa, Egypt, Algeria, Morocco, Kenya, Angola, Ghana, Ethiopia, Sudan, Tanzania, Tunisia

www.ecommercefoundation.org Africa B2C Ecommerce Sales

25.55%

7.67%

$38.72 $35.96

Download$28.64 the full version of this ecommerce report: ecommercefoundation.org/shop

2016 2017 2018(f)

Source(s): Statista; Ecommerce Foundation 2018 *Countries incl: Nigeria, South Africa, Egypt, Algeria, Morocco, Kenya, Tanzania, Tunisia, Ghana

www.ecommercefoundation.org Africa: Top Shopping Websites

Country Ranking of Shopping websites (# of visitors)

First Second Third

Egypt Souq.com Olx.com.eg Jumia.com.eg

Morocco Avito.ma Aliexpress.com Jumia.ma

South Africa Gumtree.co.za Takealot.com Amazon.com

Source: SimilarWeb (ranked, # of visitors)

www.ecommercefoundation.org Could you explain a bit why data Interview management is so important in the African ecommerce market? Where and how do ethics and data management coincide (or collide) in the Data is the raw material used for data African ecommerce market? What does analysis today and is considered in the tech ‘ethical data management’ look like? world as a valuable resource. The goal is to meet ongoing information lifecycle needs. To The major focus point around this is not be exploitable, data must be technically selling the data to a third party. The data accessible, legally usable (e.g. CNIL, GDPR) collected through user consent can only be Marc Atallah and statistically coherent to be of any used by the ecommerce site and if they Co-founder of Mazars zettafox and interest. Therefore, a data strategy indeed have a data breach they must block Co-leads the Data Exploration / supported by a clear data management all accounts and ask us to change our Advanced Analytics team process (including systems) is necessary password. This is usually integrated into the and goes through a clear cycle: data governance part.

• Data creation/collection; What is the future of data and ecommerce Storing non-logged information helps to and what does that landscape look like? • Storage; understand a user experience from a larger Additionally, how can SMEs who sell • Processing; point of view; e.g. Are potential clients not online utilize data in a financially feasible registering because the product does not and manageable way to compete with Marc is co-founder of Mazars zettafox and co- • Archiving; leads the Data Exploration/Advanced Analytics appeal to them (which could be an answer in massive retailers like Amazon and team focusing on Machine Learning and Big • and sometimes data destruction. itself) or because they do not like the Alibaba? Data. He previously founded Caritat Strategic eCommerce site and experience? In this Analytics Group (CSAG) - an innovative leader For the ecommerce market, collecting and case, data would be used to enhance The best way to answer this is to look in knowledge discovery and predictive storing user logged session data helps to conversion or at the very least push the user back at the history of data. What has made it analytics acquired by Deloitte in 2012 to better understand the customer, his/her to subscribe and log into the site to get to so valuable today? structure and reinforce its analytics platform. experience on your site and interaction with know the customer. your products. In this case the data would be It is the convergence of three trends: He has more than 18 years of experience in used to increase basket size, up-sell, cross- Technologies are disseminating on the data analysis/exploration 10 of which were a) Computing power and storage dedicated to knowledge discovery in Data sell etc. This type of data will be used to websites, such as tracking mouse movement Science since its industrial inception as well as explain conversion on specific products, (is the person going to close the window -> b) Algorithms 11 years of academic contributions. bundling, user checkout patterns, promotions suggest a message to keep them from c) Data – a lot of it… impact, couponing impact etc. leaving for example).

www.ecommercefoundation.org Interview The massive growth in data followed offerings can be considered as SMEs so the naturally the evolution of the internet latter can use their data approaches to hit including ecommerce sites but exploded with the ground running. In the future, SMEs should be able to use mobile applications. more advanced techniques such as biometric There is a cost to using the data. modalities for user authentication - fingerprint, For the future we will probably be seeing However with cloud capabilities pushed by facial recognition (Apple and other the following trends in data: Google, Amazon and Microsoft there are manufacturers have implemented this on their more and more options giving SMEs the mobile phones); why not iris or voice • New sources of data (IoT, sensors and possibility to crunch data. Their only problem recognition, or even palm vein authentication Marc Atallah things of the sort – machine to machine may be to get a hold of good data. one day? Depending on the hardware, voice Co-founder of Mazars zettafox and type of data, voice data) or palm vein authentication may be the most Co-leads the Data Exploration / • New tools used to discover trends in data We see significant amounts of online interesting for accuracy, ease of use and user Advanced Analytics team making it easier to access and more fraud occurring across the ecommerce acceptance. powerful landscape including Africa; how can the • Data capabilities disseminating within the data management approach of SMEs help Techniques like these will become more companies and not just in specific in fraud, risk, etc.? What approach should common and more difficult to hack. departments this be and how can they create that approach?

Marc is co-founder of Mazars zettafox and co- Fraud has always been around. It usually leads the Data Exploration/Advanced Analytics comes from ill-designed IT/IS architectures “People, internet and mobile team focusing on Machine Learning and Big and bad technology implementation. Part of Data. He previously founded Caritat Strategic the answer to this lays therefore on the users must be aware of Analytics Group (CSAG) - an innovative leader cyber-security front being an issue in itself. in knowledge discovery and predictive phishing techniques, properly analytics acquired by Deloitte in 2012 to The other part today comes from good using and recording their structure and reinforce its analytics platform. data practices from people using the internet. People, the internet and mobile login/passwords etc.” He has more than 18 years of experience in data analysis/exploration 10 of which were SMEs may have an issue with data. users must be aware of phishing techniques, dedicated to knowledge discovery in Data However, most start-ups specialized in data properly using and recording their Science since its industrial inception as well as apps using digital to provide new login/passwords etc. 11 years of academic contributions. offerings can be considered as SMEs so

www.ecommercefoundation.org Country Profiles

Artwork & Source: Juanita Mulder, Pixabay Nigeria Ecommerce Sales 2013 – 2018(f) (billions of USD)

Introduction: Ecommerce Facts & Figures: • Population: 195.87 million • Internet penetration: 70% • Currency: Naira • % of e-Shoppers: 72% • VAT: 5% • E-GDP: 0.75% Download the full version of this ecommerce • Unemployment: 13.40% • % bought cross-border: 61% report: ecommercefoundation.org/shop Ecommerce Environment: • 26% of the population bought something online via phone in the past month as of 3rd quarter 2017. • The reason pay on delivery or cash on delivery has become the most preferred method of payment is because it enables buyers to examine the item they receive before paying for it. If the item is good, the customer pays for it. If the item is not the same thing seen on the website, the customer can reject the item on delivery. • The number of mobile phone users in Nigeria is continuously increasing. A recent report by Twinpine describes Nigeria as officially the most “mobilized” country in Africa – with 76% all internet traffic in Nigeria coming through mobile devices. • The demand for electronic transactions has attracted payment facilitators from Europe and Asia who are investing in Nigerian electronic infrastructure projects. Online commerce and financial technology in Nigeria is strengthened by fast growing youth populations, expanding consumer power, and increased smartphone penetration. • The popularity of social media in Nigeria increases with mobile penetration and as data costs fall. Access to local social media sites (Nairaland and Linda Ikeji) has also increased since 2014. • Nigeria’s economy is gradually becoming cashless, as digital payment and electronic banking are implemented in phases across 27 states of the federation, which began in Lagos as a pilot in 2012. At present, most transactions are conducted electronically, while the remaining states continue to deal with cash. Source(s): Jumia.com; Statcounter; CIA World Factbook; PayPal; Ipsos; guardian.ng; Hootsuite; webcoupers.com; qz.com; export.gov, 2018

www.ecommercefoundation.org Nigeria

Payment Methods 2017 used Financial Inclusion Factors: Population: 50.7% Population: 49.3% • Has a bank account: 44% Direct payment to Literacy: 50% Literacy: 69% 43% • Has a credit card: 3% seller’s account • Makes and/or receives mobile payment via GSMA: 2% Prepaid/debit card 27% • Women with a credit card: 2% • Men with a credit card: 4% Credit card 18% • Women making internet payments: 2% • Men making internet payments: 5% Other 10%

Top Websites Top Google Search Queries Age Structure 2018 • Google.com • News • Bet9.ja.com • Bet9.ja 0-14 42.54% • YouTube.com • Livescore • Facebook.com • BBC 15-24 19.61% • Eskimi.com • Hausa 25-54 30.74% • Jumia.com.ng • Facebook Average spending per e-shopper 2016 2017 2018(f) 54-64 3.98%

65+ 3.13% U.S. dollar spending/shopperDownload the full version of this ecommerce$15.61 report: ecommercefoundation.org$23.20 /shop $30.53

Source(s): Jumia.com; Statcounter; CIA World Factbook; PayPal; Ipsos; guardian.ng; Hootsuite; webcoupers.com; qz.com; export.gov, 2018

www.ecommercefoundation.org How would you say the ecommerce • Mistrust of consumers who have already Interview environment has grown in Cameroon? been scammed by buying online • Administrative delays in the granting of I would say that the environment of authorizations by the public authorities ecommerce has developed in Cameroon • The instability of the internet connection in “…the vast majority of because over the years, mentalities are remote areas customers here want to touch changing and more and more consumers • The limits of the road network want things to be facilitated for their daily the goods ordered before shopping. mobile phone operators are also How does your audience in paying. This explains the fact deploying to improve fiber optics. This Africa/Cameroon differ from your Zodes Tawin makes it possible to gradually stabilize the audience in other parts of the world? that the bulk (79.33%) of President, internet connection in remote areas. Cameroon Federation of Our audience in Africa / Cameroon differs ecommerce transactions… is E-commerce The arrival of electronic money in late from our audience in other parts of the world made in cash on delivery.” 2014 (Orange and MTN money) has since in that: the vast majority of customers here helped to improve payment methods. To want to touch the goods ordered before Which areas do you feel could be date 18.2% of online transactions are settled paying. This explains the fact that the bulk improved upon to help in by electronic money mainly Orange and (79.33%) of ecommerce transactions, the developing/growing the ecommerce MTN money. payment is made in cash on delivery. market? The gradual construction of the road Customers prefer products imported from • Access to a more reliable internet network helps to efficiently facilitate Europe because here it is a luxury here to connection customer deliveries in remote areas. But it buy items from Europe and those from Asia • Respect of delivery times African Entrepreneur of Cameroonian origin. must be remembered that much remains to are cataloged as products of bad qualities. He created in June 2011 a structure named • The diversification of payment methods be done in this direction. KEVINO COMPUTER SERVICES, specialized • monitoring the quality of products in IT Maintenance he resold in 2014, he is delivered to consumers Ecommerce start-ups are popping up since 2016 CEO & Founder of ZORICAM. - • Ensure satisfaction by efficiently in Cameroon/Africa at a rapid pace. Current Project Manager of the African Fair of managing customer returns for: What do you see are the biggest e-commerce, Project Manager of the National nonconformity of merchandise; color, size Forum of Entrepreneurship. He was also obstacles for these business owners? or different characteristics compared to responsible for the communication unit for the those presented on the website Christmas Fair (2017 edition). In my opinion, the main obstacles for • Improve customer services and/or after business owners exercising in ecommerce sales services. are:

www.ecommercefoundation.org What are the biggest opportunities Africanews.com states that “the lack Interview and/or threats in the current of reliability of system of payment and ecommerce market? further risks of fraudulent transactions” are the main barriers “…ensure a good customer In the current market, we do not find an when it comes to Cameroonians operator who innovates every day in terms of buying online*. Is this something you service for the follow-up of the quality products and services, hence the agree with? constantly recurring complaints from orders in time” consumers. This is a boon for any serious I fully agree with these statements. operator who wants to settle. Threats in the According to our analysis based on our Looking at different factors in a Zodes Tawin current ecommerce market are: current market research, the solutions to consumer’s decision to buy, which President, these problems could be: play the most important role for your Cameroon Federation of • The approximate quality of the current consumer base? E-commerce sales sites • Diversification and reliability of payment • Administrative delays methods Delivery speed • The almost inexistent internet connection • The establishment of a regulatory This is a key factor in building in the bottom of the country. institution of the sector to highlight the customer loyalty. As a result of our • Insecurity (deliverymen who transport marks of trust and list the impostors. (The successful consumer studies, we have valuable goods and cash) Cameroonian Federation of ecommerce is been able to identify a large number of • The difficult access in the remote areas trying to remedy this failure, studies are complaints in this direction, including the for the deliveries of the customers all this underway in this area. meaning) failure to meet delivery deadlines. due to the insufficiency of the routes. • The organization of events to allow meetings between e-merchants, Delivery methods African Entrepreneur of Cameroonian origin. For Cameroonian ecommerce in consumers and other stakeholders to He created in June 2011 a structure named The most common modes of delivery particular, what aspects are most create a climate of trust. KEVINO COMPUTER SERVICES, specialized with us are: home delivery, removal of in IT Maintenance he resold in 2014, he is important in retaining customers? the parcel at a relay point or agency. since 2016 CEO & Founder of ZORICAM. - Current Project Manager of the African Fair of • Ensure a good customer service for the Payment methods e-commerce, Project Manager of the National follow-up of the orders in time In the case of Cameroon and Gabon, Forum of Entrepreneurship. He was also • Develop a quality after-sales service the payment methods are as follows: responsible for the communication unit for the • to control the quality of the products • Cash payment on delivery (79.33%) Christmas Fair (2017 edition). delivered to the customers, • Payment by electronic money (18.2%) • Ensure the respect of delivery times • Payment by credit card (2.47%)

*http://www.africanews.com/2016/05/17/development-of-e-commerce-in-cameroon

www.ecommercefoundation.org The price delivered to the customers and this Interview The question of price is a relative constitutes a real problem because this kind question since it may vary depending on of attitudes contributes to install a feeling of the quality of the products. Always is the doubt in the head of the consumers and margin between the product sold in consequently, this all hinders the ecommerce stores and the price of online sale should development. not be large. What impact do you feel trustmarks Trust in store: have on African/Cameroonian For the purchase, many consumers consumers when shopping online. Zodes Tawin are trying to change buying habits for the President, simple reason that they need to be Trust brands have a very positive impact Cameroon Federation of reassured that the items they order online on African/Cameroonian consumers. One of “For the purchase, many E-commerce will be the same that will be delivered. the factors hindering the evolution of reassured that the items they order ecommerce is the lack of trust. Consumers consumers are trying to Website design are becoming more and more reluctant to As for the websites, let’s start with the shop online because they are wary of scams change buying habits for the inventory of fixtures. In Central Africa at the and looking for reputable sales sites. Hence simple reason that they need moment, online sales sites for the most part the prominence of the labels of trust on the are not very dynamic sites, we just notice an Cameroonian / African market. to be reassured that the items operator that stands out in this sense it is particularly Jumia who has a website that s Buea is known as the “Silicon they order online will be the approach to the international standard. Mountain” in Cameroon*. Do you see same that will be delivered.” African Entrepreneur of Cameroonian origin. the potential for young entrepreneurs He created in June 2011 a structure named Product Description in the ecommerce sector? KEVINO COMPUTER SERVICES, specialized in IT Maintenance he resold in 2014, he is On this point, we have also been given to since 2016 CEO & Founder of ZORICAM. - note the shortcomings; The actual Young entrepreneurs can advance the Current Project Manager of the African Fair of characteristics of the products are not ecommerce sector by creating advocacy e-commerce, Project Manager of the National always those stated. strategies with the public authorities, Forum of Entrepreneurship. He was also developing concepts to engage customers, responsible for the communication unit for the Pictures placing the customer at the center of the Christmas Fair (2017 edition). Very often, the pictures published on the interests, ensuring technology watch in sight sites of sales are different from the articles and finding customer loyalty means.

*http://thecommonwealth.org/media/news/cameroon-boost-e-commerce-new-commonwealth-strategy

www.ecommercefoundation.org South Africa Ecommerce Sales 2013 – 2018(f) (billions of USD)

Introduction: Ecommerce Facts & Figures: • Population: 57.4 million • Internet penetration: 65% • Currency: S.A. Rand • % of e-Shoppers: 57% • VAT: 15% • E-GDP: 0.91% Download the full version of this ecommerce • Unemployment: 27.60% • % bought cross-border: 50% report: ecommercefoundation.org/shop Ecommerce Environment: • 18% of online consumers bought something online via phone in the past month as of 3rd quarter 2017. • South Africans spend mostly in the fast food category of online shopping, while groceries are still purchased with greater frequency in-store than online. Research also shows that cross-border online spending is increasingly common. • In South Africa, generally B2B customers are also B2C customers, so interaction Top 3 import countries (billions of USD): is generally the same. Both have become accustomed to performing consumer product research online. As a result, both types of customers are using consumer $15.5 and B2B websites to purchase products and services for their companies or as individuals. $7.03 • South Africans purchase mostly from South African websites, but 27% purchase from the United States, and 14% from Europe. $5.47 • Mobile phones have largely replaced wallets as banks, card operators, retailers and communications companies provide alternatives to cash as a means of payment. M-commerce has advanced beyond mobile banking to debit and credit transactions. Source(s): SimilarWeb; PayPal; Ipsos; Statista; eShopWorld.com; Hootsuite; Fin24.com; CIA World Factbook; Statcounter; export.gov, 2018

www.ecommercefoundation.org South Africa

Financial Inclusion Factors: Population: 50.9% Population: 49.1% • Has a bank account: 70% Literacy: 93% Literacy: 96% • Has a credit card: 13% • Makes and/or receives mobile payment via GSMA: 14% • Women with a credit card: 13% • Men with a credit card: 14% • Women making internet payments: 7% • Men making internet payments: 8%

Cross-border Ecommerce 2018 Payment Method 2017 Top Global Websites Top Google Search Queries Preference • Gumtree.co.za • Facebook Shop Domestically Only 38% • Takealot.com • News Credit card 45% • Amazon.com • Weather Shop Domestically & Cross-border 50% • Makro.co.za • Google Debit card 21% • Bidorbuy.co.za • YouTube Shop Cross-border only 12% Bank transfer 20%

Average spending per e-shopper 2015 2016 2017 2018(f) Other 8%

Download the full version of this ecommerce report: ecommercefoundation.org/shop U.S. dollar spending/shopper $78 $130 $143 $157 PayPal 7%

Source(s): SimilarWeb; PayPal; Ipsos; Statista; eShopWorld.com; Hootsuite; Fin24.com; CIA World Factbook; Statcounter; export.gov, 2018

www.ecommercefoundation.org What impact do you feel trustmarks will steps which I believe will lead to the Interview have on African/South African consumers introduction of trustmarks elsewhere on the when shopping online? continent over the next few years. However, we must be careful. We need to be sure that Trust is one of the biggest challenges to trustmarks without the necessary support the adoption of ecommerce in Africa. The and only intended for the financial gain of the “Trust is one of the biggest issues most usually referred to in market trustmark issuer are side-lined and challenges to the adoption of research reports are online payments and discouraged. The Ecommerce Forum Africa delivery. The cost and coverage of the sees as its mission to ensure as far as ecommerce in Africa.” internet are also issues. European and possible that the trustmarks that do exist are Alastair Tempest American consumers tend to put the use of bona fide, and run for the only objective to CEO, personal data as a major trust problem. So support and grow trust in ecommerce in This has been overcome to an extent by Ecommerce Forum Africa far, that aspect is not of great importance Africa. the wholesale adoption of the mobile phone compared to online payments and deliveries throughout the Continent. The adoption of for the African consumer. I also suspect from Ecommerce start-ups are appearing in the digital economy in Africa makes great discussions on business to business that South Africa/Africa at a rapid pace. What sense particularly with the forthcoming online payments and delivery are also are obstacles for the entrepreneurs? African Free Trade Area (AfCFTA). businesses’ major concerns when adopting Governments and financial support are ecommerce. Online sales of services, on the We are a continent of entrepreneurs. And areas which entrepreneurs struggle with. He spent most of his life in Brussels other hand, have always been quite healthy. we are also used to dealing with many Financial support is often difficult to secure. representing the media and marketing sectors, Government red tape is also a challenge including online sales. Moved to South Africa obstacles. Communications over distances in 2011, and in 2015 helped set up the There are very few African Trustmarks, have always posed one of the biggest although e-government is helping to reduce Ecommerce Forum Africa. however, many African ecommerce users challenges. And, despite the image that bureaucracy. are aware of European and American traditional maps give, the African Continent In 2016 he was appointed CEO of the EFA. He trustmarks. A piece of South African research is vast. I always remind my friends in Europe Other issues we need to deal with are the consults on privacy, ecommerce and done last year suggested that 18% of that the distance between Johannesburg to absence of statistics, research and training. marketing education issues. consumers who responded to the survey Cape Town in South Africa is almost the There is little data on business to consumer, would favour a trustmark. Given that there is same as between Brussels and Madrid. but virtually no data on business to He has a BA (hons) from the University of no trustmark available yet, that was a very There is a lack of roads and train tracks business. Market research is often York, UK, and a Masters in Economics from positive indication. particularly cross-frontier. Logistics are proprietary which will help the owner/funder the College of Europe, Bruges, Belgium. He but not improve the general knowledge of also studied for a doctorate on the economics therefore a major obstacle. Some areas of marketing at the University of Ghent, A trial is planned with a major retailer in have no or very rudimentary postal codes. the sector. Training and education are issues Belgium. South Africa soon. A trustmark is being Telecom/internet connections are another we are also starting now but need to get considered in Kenya. These are introductory challenge in some countries. organized and more professionally driven.

32 www.ecommercefoundation.org Finally, we do not have a tradition of Europe & North America turned big Interview distance selling, and therefore trust is a ecommerce companies away from the particularly challenging issue, not only African market except where they were consumer trust but also business trust. There already established (for example Carrefour are obstacles, I have mentioned some, but in in the Francophone markets). Africa the spirit to overcome will achieve great things! This has allowed African ecommerce companies to establish and grow. One of the What has made retailers such as largest ecommerce multinationals, Naspers, MallforAfrica, Jumia or Takealot a has now spread from a success with “One of the largest Alastair Tempest success story in the African market? Takealot, Superblast and Spree in its base in CEO, South Africa, to a powerful African and ecommerce multinationals, Ecommerce Forum Africa When ecommerce appeared in the 1990s, European ecommerce presence, Naspers, has now spread from the sale of services, particularly travel, spearheaded by OLX, and with a major entertainment, and financial services was presence in Central and Eastern Europe. a success with Takealot, quickly taken up in Africa. Superblast and Spree in its Can Alibaba, Amazon and other Western The ecommerce crash in 1999 was ecommerce companies create powerful base in South Africa, to a followed by the growth, as we all know, of entities for themselves in Africa at this late He spent most of his life in Brussels the digital giants in the Americas and stage? Alibaba is certainly achieving powerful African and representing the media and marketing sectors, including online sales. Moved to South Africa Europe, but investment into the developing impressive growth, particularly in East Africa. European ecommerce in 2011, and in 2015 helped set up the world was slow and cautious – and mainly Amazon and others seem to be content, for Ecommerce Forum Africa. due to services businesses, such as the moment, in using the African e-platforms. presence, spearheaded by Microsoft, or Google. Amazon had a go in In 2016 he was appointed CEO of the EFA. He South Africa but found the delivery issues OLX, and with a major consults on privacy, ecommerce and too challenging for the size of the market at presence in Central and marketing education issues. the time. Even Reader’s Digest, more or less the only distance selling company operating Eastern Europe” He has a BA (hons) from the University of in South Africa in the 1990s, withdrew and York, UK, and a Masters in Economics from sells from Australia. the College of Europe, Bruges, Belgium. He also studied for a doctorate on the economics of marketing at the University of Ghent, Currency fluctuations, bureaucratic red Belgium. tape, the lack of a cross-border market, and the delights of rapidly growing markets in

33 www.ecommercefoundation.org Egypt Ecommerce Sales 2013 – 2018(f) (billions of USD)

Introduction: Ecommerce Facts & Figures: • Population: 99.38 million • Internet penetration: 48% • Currency: Egyptian Pound • % of e-Shoppers: 22% • VAT: 14% • E-GDP: 2.10% Download the full version of this ecommerce • Unemployment: 11.90% • % using mobile online: 46% report: ecommercefoundation.org/shop Ecommerce Environment: • Payment card penetration is low, with only around 10 million credit or debit card holders in the country, representing a little more than 10% of the population. Roughly 80% of ecommerce purchases are still paid for by COD. • Important local payment methods: Bee Card; Fawry; Onecard; JumiaPay; Orange Money. • An e-government initiative has been implemented to increase government efficiency, reduce service-provision time, establish new service-delivery models, reduce government expenses and encourage e-procurement. In 2009, the government implemented the e-signature service, allowing public and private companies to offer e-signature authentication. • 38% of consumers paid for purchases while shopping online on smartphone in 2017, and 14% of the population bought something online via phone in the past month as of 3rd quarter 2017. • A survey on e-commerce usage by households and individuals conducted by Egypt’s ICT Ministry found that the age group of 15-29 years comprised more than 50% of total online shoppers in the country, while Egyptians in the age group of 33-44 years accounted for more than 30% of online shoppers. • Statistics for 2015 showed that daily visitors of ecommerce websites in Egypt amounted to 12 million – 18 million, in contrast to news websites, which attracted 17 million – 20 million visitors per day.

Source(s): PayPal; Ipsos; Statista; export.gov; PPRO; Payza; Statcounter; itwebafrica.com; SimilarWeb; Hootsuite, 2018

www.ecommercefoundation.org Egypt

Financial Inclusion Factors: Population: 49.4% Population: 50.6% • Has a bank account: 14% Literacy: 67% Literacy: 83% • Has a credit card: 2% • Makes and/or receives mobile payment via GSMA: 1% • Women with a credit card: 0.7% • Men with a credit card: 3% • Women making internet payments: 0.8% • Men making internet payments: 2%

Payment Methods Used 2018 Top International Webshops Top Global Websites Top Google Search Queries • Souq.com • Facebook Cash 72% Souq.com • olx.com.eg • Google Card 22% • jumia.com.eg • YouTube Olx.com.eg • Mawdoo3.com Bank Transfer 2% • Amazon.com Jumia.com.eg

Average spending per e-shopper 2016 2017 2018(f) Other 3% Mawdoo3.com

Download the full version of this ecommerce report: Amazon.com U.S. dollar spending/shopperecommercefoundation.org$963.35 /shop$555.87 $479.48 eWallet 1%

Source(s): PayPal; Ipsos; Statista; export.gov; PPRO; Payza; Statcounter; itwebafrica.com; SimilarWeb; Hootsuite, 2018

www.ecommercefoundation.org Algeria Devices used to access the Internet, since January 2018

Introduction: Ecommerce Facts & Figures: • Population: 42 million • Internet penetration: 46.5% • Currency: Dinar • % Using Social Media: 39% • VAT: 19% • % using mobile online: 51.2% • Unemployment: 11.70% • % of e-Shoppers (2017): 13% Ecommerce Environment: • Under current law, Algerian citizens may not purchase items online from abroad. Businesses, however, may purchase items online from abroad for internal use. American businesspeople interested in online sales should note that the use of private credit cares is extremely limited in Algeria. Only recently have Algerians gained the use of international credit cards (e.g. Mastercard and Visa) issued by some local banks and accepted for use abroad. • The Algerian Parliament passed a law in February 2018 establishing the country’s first regulation on ecommerce. As such, online marketplaces will have to host their websites in Algeria and need to be listed in the country’s commercial register. The law bans all online purchase of tobacco and alcoholic beverages as well as pharmaceutical products and online betting and gambling services. The government has recently declared that they do not intent to open their e-market to foreign companies in order to preserve national economy and sovereignty. • Algérie Poste (Algerian National Postal Services) is set to introduce an electronic wallet in 2018 to facilitate online purchases, which should further boost ecommerce. • Currently, cash on delivery is the preferred payment method among Algerians, as in most countries in the Arab world and Northern Africa. • Algeria is largely a cash economy, and the use of credit cards is extremely limited. Most common payment terms are used in Algeria, with the exception of payment in advance. Payments for goods are subject to producing an invoice with a bank domiciliation and customs clearance documents. Source(s): SimilarWeb; Santandertrade.com; PayPal; Ipsos; Statista; Hootsuite; eShopWorld.com; Fin24.com; CIA World Factbook; Statcounter; export.gov, 2018

www.ecommercefoundation.org Algeria

Financial Inclusion Factors: Population: 49.5% Population: 50.5% • Has a bank account: 50% Literacy: 73% Literacy: 87% • Has a credit card: 6% • Women with a credit card: 4% • Men with a credit card: 8% • Women making internet payments: 2% • Men making internet payments: 9%

B2C Ecommerce Figures 2017 Social Media Usage 2018 Top Websites Top Google Search Queries • YouTube.com • Facebook Market potential USD $5 billion Facebook 42.11% • Google.com • YouTube eShoppers 2,450,000 • Ouedkniss.com • Google YouTube 51.45% • Facebook.com Top ecommerce website Kaymu Pinterest 2.96% Share of returns of online B2C Ecommerce Turnover 2017 20% purchases Twitter 2.64% Download the full version of this ecommerce report: B2C Ecommerce Turnover in USD $ $5 billion Common delivery time 2-day Instagram .37% ecommercefoundation.org/shop

Source(s): SimilarWeb; Santandertrade.com; PayPal; Ipsos; Statista; Hootsuite; eShopWorld.com; Fin24.com; CIA World Factbook; Statcounter; export.gov, 2018

www.ecommercefoundation.org Morocco Ecommerce Sales 2013 – 2018(f) (millions of USD)

Introduction: Ecommerce Facts & Figures: • Population: 36.19 million • Internet penetration: 65.5% • Currency: Dirham • % of e-Shoppers (2016): 12% • VAT: 20% • E-GDP: 2.7% Download the full version of this ecommerce • Unemployment: 10% • % using mobile online : 43.3% report: ecommercefoundation.org/shop Ecommerce Environment: • In 2014, there were 2,419 retail websites, up from 1,320 in 2013, a growth of nearly 100%. The retail websites were composed of SMBs (50%), very small businesses (14%), associations (6%) and governments (20%). Purchases mainly concern services (49%), consumer goods (34%), tourism (11%), and public services (5%). • One major hurdle for ecommerce is lack of online payment systems. There is a high instance of credit card fraud in morocco and several U.S. companies have blocked access to Moroccan Internet Service Providers. Nonetheless, the ecommerce market environment is improving. Most transactions made online in Morocco still have the payment executed offline. Restrictions on outbound cash flows make it difficult to use Moroccan Credit Cards for international purchase of large volume. Internet payment systems such as PayPal are beginning to enter the market. This should allow U.S. exporters to market directly to Moroccan consumers or businesses. • International shippers like DHL, Fedex, and UPS are established in the larger urban areas. They offer expedited service for after sales service and support. Certain types of products and parts could be offered online and shipped directly to Morocco with these shippers. • According to Jumia, 73% of its clients visited through their phones, with a successful purchase rate of 70%. Just 15% of mobile users use the Jumia app, while 58% use the mobile version of the site. • Jumia Morocco and the Interbank Money Center have announced the launch of a new offer to promote online payment by credit card, offering a 10% reduction for each customer paying by an online credit card. Source(s): CMI; Ipemed; Statista; A.T. Kearney; PayPal; Ipsos; Hootsuite; Statcounter; export.gov; gulf-times.com; moroccoworldnews.com, 2018

www.ecommercefoundation.org Morocco

Which of these types of online shops Payment Method Preference/Use 2017 have you bought something from in the 2017 past 12 months? Cash on delivery 50% Population: 50.5% Population: 49.5% Literacy: 63% Literacy: 83% Online Marketplace 41% Credit card 43% Multi-brand platform 32% Online payment (PayPal, etc.) 33% Online boutique 24% None of the above 13% Mono-brand stores 21% Prepaid cards/vouchers 12% Mass merchants 14% Direct debit 10%

Members-only store 12% Cash in advance 8% None of the above 23% Invoice 8%

Which of these items have you bought Which of these statements on online 2017 2017 online in the past 12 months? shopping do you agree with? When I plan a major purchase, I always do some Top Websites Financial Inclusion Factors: Clothing 39% 57% research on the internet first. • Avito.ma • Has a bank account: 39% Consumer electronics 38% • Aliexpress.com • Has a credit card: 4% I want to see an item before I buy it. 55% Shoes 29% Customer reviews on the internet are very • Jumia.ma • Women with a credit card: 2% 54% • Ebay.com • Men with a credit card: 7% Cosmetics & body care 19% helpful. • Amazon.com Bags & accessories 17% I prefer to use my smartphone or tablet to research on products and make major new 46% Books/movies/music & games 14% Top Search Queries purchases. • Facebook Household appliances 14% I prefer express shipping. 36% When I buy an item, I want to hold it in my hand • Google Sports & outdoor 11% 33% the same day. • YouTube Furniture & household goods 8% I usually manage habitual orders directly via 18% • Maroc Toys & baby products 7% smartphone or tablet. Source(s): CMI; Ipemed; Statista; A.T. Kearney; PayPal; Ipsos; Hootsuite; Statcounter; export.gov; gulf-times.com; moroccoworldnews.com, 2018

www.ecommercefoundation.org Kenya Devices used to access the Internet, since January 2018

Introduction: Ecommerce Facts & Figures: • Population: 51 million • Internet penetration: 82.6% • Currency: Kenyan Shilling • Cash transactions: 94% • VAT: 16% • E-GDP (2014): 0.08% • B2C Ecom. Sales (2014): $47.5 million • % using mobile online : 75.5% Ecommerce Environment: • Kenya National Chamber of Commerce (KNCCI) has agreed on a deal with Chinese ecommerce service Amanbo. The main idea is to cut off the middlemen and reduce the logistics costs that arise from exports and imports. According to the agreement KNCCI will verify the quality and standards for Kenyans that are interested in selling their products on the Chinese market. This will offer the local traders larger options with more competitive prices. Cutting out the middlemen will also reduce risks of buying low quality goods in the trade process. • Kenya is home to M-Pesa, the mobile wallet provider started by mobile telecom provider, Safaricom. The availability of a secure payment system encourages Internet access and online buying. More than 45% of Kenyan adults use M-Pesa according to Emergent Payments. Safaricom also recently established a partnership with PayPal to enable Kenyan customers to easily transfer money between PayPal and M-Pesa mobile wallets. This collaboration will open global marketplaces to Kenyan entrepreneurs and businesses that wish to sell abroad. • 85% of Kenyans have adopted electronic means of payment, including bank accounts, mobile phone prepaid cards or other payment products. • SimbaPay announced November 28, 2018 that Family Bank limited, a bank located in Kenya, has partnered with the London-based FinTech to launch an instant money transfer service from Kenya to China through WeChat. According to the companies, over 7 million customers and businesses in Kenya will now have access to SimbaPay’s international money transfer service and be able to send money to WeChat Pay from Family Bank’s PesaPap mobile banking application and USSD service. Source(s): PracticalEcommerce.com; Prisync.com; Statcounter; Hootsuite; UNCTAD; EcommerceGuid.com; export.gov; pymnts.com, 2018

www.ecommercefoundation.org Kenya

Financial Inclusion Factors: Population: 49.7% Population: 50.3% • Has a bank account: 75% Literacy: 75% Literacy: 81% • Has a credit card: 5% • Makes and/or receives mobile payment via GSMA: 58% • Women with a credit card: 4% • Men with a credit card: 5% • Women making internet payments: 3% • Men making internet payments: 7%

Social Media Usage 2018 Ecommerce Internet E-shopper Infrastructure Penetration Penetration Top Websites Top Search Queries • Jumia.com • Sportpesa Facebook 68.14% • Cheki.co.ke • Kenya 2015 21.2% 18% • Olx.co.ke • Livescore • Rupu.co.ke • News Pinterest 15.25% 2016 28.7% 45% • Facebook Twitter 8.35%

2017 60% 50% E-shopper Penetration 2015 2016 2017 2018(f) YouTube 5.56%

2018(f) 82.6% 60% Share of online population shopping online 18% 45% 50% 60% Instagram 1.43%

Source(s): PracticalEcommerce.com; Prisync.com; Statcounter; Hootsuite; UNCTAD; EcommerceGuid.com; export.gov; pymnts.com, 2018

www.ecommercefoundation.org What sources of information do you use Ecommerce start-ups are popping up in Interview to find new innovative ideas for your Kenya/Africa at a rapid pace. company, Buni Fashion? What do you see are potentially the biggest obstacles for these business “The biggest opportunity [in • Customer feedback owners? • Online research African ecommerce] is in • Exhibitions • Delivery logistics – lack of proper physical cross-border selling” • Observation addresses to support door-to-door • Engaging with fashion designers and delivery; high transport and freight costs In a consumer’s decision to buy, which tailors • Lack of trust for online shopping by factor plays the most important role for Lydia Makau consumers your consumer base? Country Manager What impact do you feel trustmarks have • High cost of data bundles Safe.Shop on African/Kenyan consumers when • Lack of knowledge of customs procedures • Trust in store shopping online? • Price What are the biggest challenges faced • Delivery speed Trustmarks enhance consumers’ throughout Africa regarding ecommerce? • Payment methods offered confidence in online shopping; they are a sign of reliability as they indicate that the • Low internet penetration in most African Lydia has over 15 years’ experience in Which major changes have you seen in associated business has been vetted and countries implementation, support and management of your online market recently? ERP systems across East Africa in Trade, passed relevant standards. • Delivery logistics – lack of proper physical Manufacturing, Floriculture, NGOs and addresses to support door-to-door A rise in ecommerce platforms; some new automotive industries. Regarding tech and ecommerce, often delivery; high transport and freight costs entrants include Masoko by Safaricom, South Africa and Kenya are put forward • Lack of trust for online shopping by Orion Online Mall and Mzizzi by PayTree.. She is the Country Manager for Safe.Shop in as strong players. consumers Kenya, the Global Ecommerce Trust Mark What do you feel gives these nations the • High cost of data bundles What are the biggest opportunities and/or which is an Initiative of the Ecommerce edge? • Low purchasing power of consumers threats in your current ecommerce Foundation to foster Global Digital Trade. market? For your company, as well as in Lydia is also the founder of Buni Fashion, a • High mobile phone based internet Which social media platforms do you use one-stop-shop for African inspired gift items general for the African/Kenyan market. penetration for marketing to shoppers? made in Kenya. • The availability of relatively secure mobile The biggest opportunity is in cross-border Lydia is passionate about Africa’s growth and payment services such as Mpesa • Facebook selling whilst the biggest threat is an influx of development and believes that technology- • Young, tech-savvy population who are • Twitter cheap Chinese products and for fashion driven entrepreneurship is key to unlocking wanting to go online • Instagram businesses cheap second-hand clothes. Africa’s potential.

www.ecommercefoundation.org Angola Devices used to access the Internet, since January 2018

Introduction: Ecommerce Facts & Figures: • Population: 30.8 million • Internet penetration: 20% • Currency: Kwanza • % using mobile online : 75.5% • VAT: 10% • Social media penetration: 45% • Unemployment: 6.60% Ecommerce Environment: • Payment is made through domestic debit cards (Multicaixa) and delivery is through local courier service since the mail delivery system is unreliable. • Domestic ecommerce (B2C) is not widespread in Angola, but it is slowly growing with the creation of several domestic ecommerce websites. BayQi is one of the most popular and widely used ecommerce sites in Angola. • Cross-border ecommerce is restricted to middle and upper income Angolans with access to international credit cards and international travel. Such purchases are made most often through major international online stores such as Amazon, eBay (USA & Europe) and Alibaba (China). Deliveries are made through international couriers. • According to export.gov, some Angolans use international commercial consolidator services such as a U.S. company for multiple ecommerce purchases, then save on transportation delivery costs. Middle and upper income Angolans travel regularly to Portugal where many have homes and extended family. It is common for them to make ecommerce purchases for delivery to family and friends in Portugal, then bring the items back to Angola in their luggage. • International transportation delivery services including Fedex, UPS and DHL exist in Angola. Couriers are commonly used due to the unreliability of the domestic mail system. • Angolan intellectual property rights law does not specifically address ecommerce.

Source(s): Statcounter; UNCTAD; Hootsuite; export.gov, 2018

www.ecommercefoundation.org Angola

Financial Inclusion Factors: Population: 49% Population: 51% • Has a bank account: 29% Literacy: 61% Literacy: 82% • Has a credit card: 4% • Women with a credit card: 3% • Men with a credit card: 6% • Women making internet payments: 0.6% • Men making internet payments: 1%

Ecommerce Internet E-shopper Infrastructure Penetration Penetration Top Websites Top Search Queries • Google.com • Angola 2015 21.2% 18% • YouTube.com • Facebook • Yahoo.com • Baixar • Olx.com • Download 2016 28.7% 45% • Google 85.8% 1.49% 5.67% 5.28% 2017 60% 50%

2018(f) 82.6% 60%

Source(s): Statcounter; UNCTAD; Hootsuite; export.gov, 2018

www.ecommercefoundation.org Ghana Ecommerce Sales 2013 – 2018(f) (millions of USD)

Introduction: Ecommerce Facts & Figures: • Population: 29.46 million • Internet penetration: 45% • Currency: Ghanaian Cedi • % of e-Shoppers (2015): 8% • VAT: 15% • E-GDP: 0.08% Download the full version of this ecommerce • % Facebook users: 79.73% • % using mobile online : 75% report: ecommercefoundation.org/shop Ecommerce Environment: • Ghana has a website dedicated specifically to ecommerce for SMEs: https://www.gepaghana.org/guide-to-export/e-commerce-for-smes/ • Payment providers and platforms: • In 2009, MTN Ghana was the first telecoms company to introduce a mobile payment system to help drive a ‘cash-lite’ economy. The service has approximately 10.2 million customers with more than 60,000 merchant outlets nationwide and 422 ATMs activated for cash withdrawals (as of 2016). In 2016, the business recorded 485 million transactions. • Vodafone launched mobile money services in 2015. The mobile money platform was built on the back of M-Pesa (Kenyan mobile wallet provider), and is currently available on USSD and through third-party aggregators. It has 2 million registered subscribers, of with 85% are active. • Airtel Money’s flagship mobile money product in Ghana has evolved to augment traditional peer-to-peer transactions with complementary services such as bank account linking, bill payments, merchant payments and international remittance. Subscribers are able to send monies to friends and family in remote areas of the country to any network, given national interoperability. The company also runs a payments aggregator (Zeepay), which helps reduce the cost of receiving funds from abroad. Both products help improve financial inclusion and participation in the formal economic sectors.

Source(s): gepaghana.org; GSM Association; Statcounter; CIA World Factbook; Hootsuite, 2018

www.ecommercefoundation.org Ghana

Financial Inclusion Factors: Population: 49.8% Population: 50.2% • Has a bank account: 41% Literacy: 71% Literacy: 82% • Has a credit card: 0.9% • Makes and/or receives mobile payment via GSMA: 13% • Women with a credit card: 0.8% • Men with a credit card: 1% • Women making internet payments: 2% • Men making internet payments: 3%

Top Websites Top Search Queries Social Media Usage 2018 Population Age Structure 2018 • Google.com • Ghana • YouTube.com • Download Facebook 79.73% 0-14 38% • Ghanaweb.com • Facebook • Jumia.com • Google Twitter 7.93% 15-24 18.63%

25-54 34.14% Pinterest 5.51%

Online Device Usage Desktop Tablet Mobile YouTube 3.74% 55-64 4.97%

Share of population using device to access internet 18% 45% 50% Instagram 0.52% 65+ 4.25%

Source(s): gepaghana.org; GSM Association; Statcounter; CIA World Factbook; Hootsuite, 2018

www.ecommercefoundation.org Ethiopia Devices used to access the Internet, since January 2018

Introduction: Ecommerce Facts & Figures: • Population: 107.53 million • Internet penetration: 15% • Currency: Birr • Social Media Penetration: 23% • VAT: 14%

Ecommerce Environment: • According to Export.gov, ecommerce is still in its infancy in Ethiopia and is rarely used. Although, the Ethiopian Government appears to recognize the need for national laws regarding ecommerce, as they are preparing a draft national law to govern the Ethiopian ecommerce market. • Ethiopian banks use debit cards and automated teller machines, but have not begun to issue credit cards. • Most Ethiopians do not have a credit card, and the internet connection is slow, expensive and unreliable. However, internet is improving, as Ethiopia has recently connected to Seacom’s underground/sea fiberoptic cable through Djibouti. • Ethiopian banks have started using primary internet transactions through mobile and card banking services. • It’s likely that due to the infancy of the ecommerce market in Ethiopia, the next step would be for webshops to offer cash-on-delivery, as consumer trust in ecommerce (as a whole), as well as webshops/retailers, will have to be created from the ground-up. This is in line with the government perspective, as the Ministry of Communications and Information Technology has already drafted policies and manuals to grow the ecommerce market, particularly on the implementation of Cash on Delivery systems. • In August of 2018, it was reported that Equity Group Holdings Ltd.’s financial technology unity was in discussions with 6 Ethiopian banks to collaborate on cross-border mobile payments and ecommerce.

Source(s): allafrica.com; export.gov; Statcounter; CIA World Factbook; Hootsuite; Bloomberg, 2018

www.ecommercefoundation.org Ethiopia

Financial Inclusion Factors: Population: 49.9% Population: 50.1% • Has a bank account: 22% Literacy: 41% Literacy: 57% • Has a credit card: 0.4% • Women with a credit card: 0.3% • Men with a credit card: 0.4% • Women making internet payments: 0.8% • Men making internet payments: 0.1%

Top Websites Top Search Queries Social Media Usage 2018 Population Age Structure 2018 • Google.com • Facebook • YouTube.com • News Facebook 0.87% 0-14 43.47% • Yahoo.com • Ethiopian 15-24 20.11% • FB Twitter 2.23% • Download 25-54 29.58% Pinterest 3.60%

YouTube 0.06% 55-64 3.91%

Instagram 0.34% 65+ 2.94%

Source(s): allafrica.com; export.gov; Statcounter; CIA World Factbook; Hootsuite; Bloomberg, 2018

www.ecommercefoundation.org Sudan Devices used to access the Internet, since January 2018

Introduction: Ecommerce Facts & Figures: • Population: 41.51 million • Internet penetration: 29% • Currency: Sudan. Pound • Social Media Penetration: 23.7% • VAT: 17% • Unemployment (2017): 12.7%

Ecommerce Environment: • 45% of mobile connections are broadband (3G & 4G). • Mobile connections as a percentage of the total population: 73%. • According to CNN, the recent US Government decision to lift the Sudanese trade embargo in October 2017 has given the country access to previously frozen assets, allowing US goods to be purchased. • Mazen Magzou, co-founder of the Sudanese shopping platform, Dukkan: “Consumers are not really used to purchasing online. The Sudanese are used to the conventional over-the-counter purchases, and to sway them, ecommerce businesses must earn their trust.” • Payment systems are apparently online and ready for ecommerce. • Mishwar, an Uber-like application has been increasing substantially, with over 1,000 car-riding orders a month. • According to an academic paper published in 2017 by professors Musbah and Kartiwi, “Technical barriers are seen as the major barrier affecting the adoption of B2C ecommerce. However, this is accompanied by regulatory and legal barriers. One of the factors that inhibit ecommerce adoption in SMEs in Sudan is the lack of Internet security. Other factors include limited use of web portals and Internet banking by enterprises. The use of credit and visa cards was prohibited in Sudan due to the USA sanctions, so transactions involve mainly cash, making it risky for customers carrying huge sums of money.

Source(s): Statcounter; CIA World Factbook; Hootsuite; CNN; ifrnd.org, 2018

www.ecommercefoundation.org Sudan

Financial Inclusion Factors: Population: 50% Population: 50% • Has a bank account: 15% Literacy: 47% Literacy: 60% • Has a credit card: 0.4% • Women with a credit card: 0.8% • Women making internet payments: 0.7% • Men making internet payments: 1% • Makes online purchases and/or pays bills online: 1%

Top Websites Top Search Queries Social Media Usage 2018 Population Age Structure 2018 • Google.com • Facebook • YouTube.com • Google Facebook 54.18% 0-14 38.68% • Facebook.com • Translate 15-24 21.04% • Eskimi.com • YouTube Twitter 8.52% 25-54 32.77% Pinterest 33.71%

YouTube 0.98% 55-64 4.24%

Instagram 0.28% 65+ 3.27%

Source(s): allafrica.com; export.gov; Statcounter; CIA World Factbook; Hootsuite; Bloomberg, 2018

www.ecommercefoundation.org Tanzania Devices used to access the Internet, since January 2018

Introduction: Ecommerce Facts & Figures: • Population: 59.1 million • Internet penetration: 29% • Currency: Tanzan. Shilling• % of e-Shoppers (2015): 19% • VAT: 20% • E-GDP (2016): 0.05% • B2C Ecom. Sales (2016): $22.86 million • % using mobile online : 75% Ecommerce Environment: • The launch of mobile payments, locally known as M-Pesa is pushing ecommerce mainstream. Not many Tanzanians have credit cards or a PayPal account, but almost every Tanzanian has an M-Pesa account or access to it. • Now, any business that wants to take payments directly online needs to simply build a website and integrate it with an M-Pesa provider from Tanzania. Easier payment management through M-Pesa solved one of the biggest hindrances of its mainstream acceptance: convenience. Furthermore, Tanzania was the first country in the world to achieve full interoperability of mobile money payment providers. • With over 44% of adults having access to M-Pesa and ability of users of different mobile money services to transact directly with each other, ecommerce is a one of the major beneficiaries. • There are platforms that offer businesses solutions to advertise and promote products online. These include ecommerce and online marketplaces like ZoomTanzania, which features products ranging from fashion items, electronics, to agricultural equipment from different sellers, be it individuals, small businesses or big brands. • According to export.gov, very few private sector companies have established B2B websites, secure credentialing is still nascent, and very few buyers have internationally accepted credit cards. However, mcommerce is growing rapidly. The arrival of the SEACOM undersea fiber optic cable in July 2009 is helping with the market.

Source(s): lordeys.com; Statista; Statcounter; CIA World Factbook; export.gov; ZoomTanzania; Hootsuite; semanticscholar.org, 2018

www.ecommercefoundation.org Tanzania

Financial Inclusion Factors: Population: 49.5% Population: 50.5% • Has a bank account: 40% Literacy: 76% Literacy: 85% • Has a credit card: 0.7% • Makes/receives mobile payments via GSMA: 32% • Women with a credit card: 0.7% • Men with a credit card: 0.7% • Women making internet payments: 1% • Men making internet payments: 1%

Top Websites Top Search Queries Social Media Usage 2018 Population Age Structure 2018 • Google.com • Video • YouTube.com • Download Facebook 64.04% 0-14 43.74% • Facebook.com • Livescore 15-24 19.86% Concerns/barriers• Yahoo.com with online shopping• Facebook 2018 Pinterest 13.32% Low trust level of online store/brand 15% 25-54 29.88% YouTube 12.35% Safety of payment 13% Twitter 5.84% 55-64 3.51% High shipping costs 3% Slow delivery 4% Instagram 3.41% 65+ 3.02%

Source(s): lordeys.com; Statista; Statcounter; CIA World Factbook; ZoomTanzania; Hootsuite; semanticscholar.org, 2018

www.ecommercefoundation.org Tunisia Devices used to access the Internet, since January 2018

Introduction: Ecommerce Facts & Figures: • Population: 11.7 million • Internet penetration: 61% • Currency: Tunisian Dinar • % of e-Shoppers (2015): 2% • VAT: 18% • E-GDP: 0.16% • Unemployment: 16% • B2C Ecom. Sales (2017): $63 mill. Ecommerce Environment: • Cash on delivery is the most common payment method in Tunisia (70%). • Most Tunisian banks allow account holders to use bank-affiliated credit and debit cards to make domestic online purchases denominated in dinars. The Tunisian dinar is a non- convertible currency, however, so online purchases in foreign currency are now allowed, and few Tunisians make cross-border purchases via ecommerce. In recognition of this limitation, the Ministry of Communication, Technology and Digital Economy launched a Digital technology Charge Card in May 2015 for Tunisians with college degrees, which allows these card holders to make online purchases of software, mobile applications, web services, and publications in support of entrepreneurial activities. As of May 2017, the Ministry recorded approximately 8,500 active users of this program, with 70% of user identified as individual college graduates and 30% identified as IT enterprises. • Due to the general lack of credit cards and online payment systems, Tunisia’s domestic ecommerce markets are underdeveloped. Most Tunisian banks offer account holders bank-affiliated credit and debit cards which can be used on domestic websites only. General purpose ecommerce retail sites similar to Amazon do not exist in Tunisia, but rather individual retailers and service providers offer their own online checkout systems tailored to Tunisian credit and debit cards. According to media, the Central Bank generally opposes allowing other online payment systems, which it views as a threatening capital flight route from the country. The lack of government support for cross-border flows in ecommerce also retards further development of the domestic ecommerce market. • There are around 1,423 ecommerce websites and the number of e-payment transactions was estimated at 2.4 million transactions during the past year. Domestic retailers dominate the ecommerce market, comprising 79% of all online transactions. • According to an IPSOS survey, the primary reason for Tunisian Internet users who do not shop online is the lack of trust in online payment (71% as opposed to the world average of 49%).

Source(s): IPSOS; Statcounter; Lloyds Bank Trade, 2018

www.ecommercefoundation.org Tunisia

Financial Inclusion Factors: Population: 49.4% Population: 50.6% • Has a bank account: 27% Literacy: 74% Literacy: 90% • Has a credit card: 7% • Women with a credit card: 4% • Men with a credit card: 10% • Makes and/or receives mobile payment via GSMA: 0.6% • Women making internet payments: 4% • Men making internet payments: 5%

Top Websites Top Search Queries Social Media Usage 2018 Population Age Structure 2018 • Google.com • Facebook • YouTube.com • YouTube Facebook 83.39% 0-14 25.15% • Facebook.com • Translate 15-24 13.99% • Nessma.tv • Google Tumblr 0.08% 25-54 43.48% Pinterest 1.28%

YouTube 13.78% 55-64 9.54%

Instagram 0.14% 65+ 7.95%

Source(s): IPSOS; Statcounter; Lloyds Bank Trade, 2018

www.ecommercefoundation.org How would you say customer Regarding machine learning – How can Interview engagement is changing in the African investing in and utilizing machine ecommerce space? Both the needs of learning positively impact foreign consumers, as well as retailer techniques retailers expanding to Africa? How do you avoid getting entangled in a to adapt and meet those needs. web of marketing tools? In the past, Customer Relationship The customer journey is more complex Management (CRM) heavily relied on people Marketers have a whole range of tools to than ever. Quite simply, it is no longer to collect and analyze data. Today, we are provide optimum service to customers. possible to refer to a single customer seeing a paradigm shift in sales from being Ironically, however, those solutions can also journey. Consumers dash all over the place, reactive to proactive, and from instinct-driven lead to new problems, such as data silos online and offline, and expect a personalized Mark de Bruijn to data-driven. Artificial Intelligence (AI) can and an inconsistent customer experience. approach from brands across the entire VP, Head of EMEA & MEE Marketing, quickly analyze and accurately predict which The success of data-driven marketing omnichannel journey. SAP Customer Experience customers are more likely to make a stands or falls with a clearly structured data purchase, and how you can best engage landscape. Organizations often have vast The connected customer of today uses with them. With machine learning, your amounts of data at their disposal, but have multiple channels, and makes their own advanced cloud CRM solution can learn over yet to extract any useful insights from all that decisions as to when and how they contact a time to forecast and score deals with greater data. brand to purchase their goods or services. accuracy, making it easier for sales teams to The days of generalized customer profiles reach their numbers and help the company New technology gives marketers more Mark is a modern, data-driven marketer with a are numbered. As customers speak up, increase revenue goals. options than ever to retain customers. More passion for digital, innovation and everything marketers increasingly gain more insight into isn’t always better, though – especially when related to customer experience. For the past 8 customer preferences. Customers expect a years, Mark has taken on various roles in Ultimately, AI can assist with the entire it comes to tools. personalized customer journey, in which they marketing, business intelligence and predictive customer journey, from prospecting to a sale, analytics. In addition, he was affiliated with have control over when and how interaction to service after the sale. Brands must acknowledge that the right Avans University as a lecturer. Mark’s greatest takes place. pleasure is sharing his vision and knowledge technology is not only instrumental but with others, as he is a regular speaker at To provide exceptional customer service strategic in engaging their customers. The events across the world. and individualized customer journeys, trend is about moving away from brands need to make effective use of data disconnected, legacy solutions toward and intelligence. The plethora of information building a true partnership with a vendor that gathered from various tools needs to be is able to manage the whole of the converted from data into actions, in which processes related to the customer journey, brands deliver marketing in the moment to from marketing, to CRM, to e-commerce, down to customer service. cx.sap.com each individual.

www.ecommercefoundation.org Africa: Summary and Expert Thoughts

✓ Examples of leading ecommerce sites in the region 1. Souq “…the vast majority of customers here 2. Avito [Africa] want to touch the goods ordered 3. Gumtree before paying. This explains the fact that the bulk (79.33%) of e-commerce ✓ Top Payment Method Zodes Tawin transactions, the payment is made in Africa is a predominantly mobile commerce region. President, cash on delivery.” Therefore mobile-payments are essential to Cameroon Federation of succeeding in the region. E-commerce

✓ Top 3 countries ranked by B2C Turnover 1. Egypt 2. South Africa “The connected customer of today uses 3. Nigeria multiple channels, and makes their own decisions as to when and how they ✓ Top ecommerce import destinations contact a brand.” • China • Germany Mark de Bruijn • United States Chief Marketing Officer, VP, Head of EMEA & MEE Marketing, Source: PracticalEcommerce, 2018 SAP Customer Experience

www.ecommercefoundation.org About the Report

www.ecommercefoundation.org About the Authors

Sara Lone Isabela Fávero Shaun Packiarajah Research Coordinator Researcher Researcher

Sara holds a Master in Public Isabela holds a Master in Shaun graduated with a Policy from the University of Development Economics from Master’s degree in Victimology California in the United States. the University of Auvergne in and Criminal Justice from the France. University of Tilburg. Sara oversees the Ecommerce Foundation Research Team in At Ecommerce Foundation, she He works for the Research its creation of country reports, is part of the Research Team Team at Ecommerce custom research, content and providing support in data Foundation in creating webinars. Additionally, Sara analysis and the creation of research-related content and presents on research around country reports. Her interests reports. His background is in the world and advises and experience include policy creation and analysis, in stakeholders in furthering analysing data as well as addition to practical knowledge ecommerce globally. conducting policy evaluations. of business development.

www.ecommercefoundation.org Definitions related to the Internet, e-commerce & e-tailing

• Broadband access: the availability of broadband is measured by the percentage • E-households: number of households that use the Internet for personal gain. of households that are connectable to an exchange that has been converted to support DSL technology, to a cable network upgraded for Internet traffic, or to • E-household expenditure: expenditure per household that bought goods or other broadband technologies. It includes fixed and mobile connections (source: services in the past year. Eurostat) • Global Online Measurement Standard for B2C ecommerce (GOMSEC): aims to • Cross-border ecommerce: percentage of ecommerce purchased at foreign provide guidelines to measure and monitor B2C ecommerce in order to enable all sites European countries to provide data with respect to the penetration of B2C ecommerce in a standardized way. • Ease of Doing Business Index: The Ease of Doing Business Index is developed by the World Bank, and averages the country's percentile rankings on • E-Government Index: The UN’s E-Government Index provides a comparative nine topics. It is made up of a variety of indicators, giving equal weight to each assessment of the e-government development of UN Member States. One of the topic. The rankings for all economies are benchmarked to June 2010. The Index primary factors contributing to a high level of e-government development is covers 185 countries. concurrent past and present investment in telecommunication, human capital and provision of online services. • E-commerce (or electronic commerce), a subset of e-business: any B2C contract on the sale of products or services fully or partly concluded by a • Gross Merchandise Volume: the total sales facilitated by a third party, such as a technique for distance communication. market place.

• E-commerce GDP: total amount of goods and services online divided by the • E-services or electronic services: “Deeds, efforts or performances whose delivery total Gross Domestic Product (GDP). is mediated by information technology. Such e-service includes the service element of e-retailing, customer support, and service delivery.” This definition reflects three • Economic Freedom Index: the Index of Economic Freedom is an annual guide main components: service providers, service receivers and the channels of service published by The Wall Street Journal and The Heritage Foundation, Washington's delivery (i.e. technology). (Jennifer Rowley, Professor Information and No. 1 think tank. For over a decade, the Wall Street Journal and The Heritage Communications, Manchester Metropolitan University, UK) Foundation have tracked the march of economic freedom around the world with the influential Index of Economic Freedom. There are 5 categories, ranking from • Inactive online population: users that have access to the Internet but have not (yet) Free (with a score between 80 and 100) to Repressed (between 40 and 49.9). purchased goods or services online in the past year.

www.ecommercefoundation.org Definitions related to the Internet, e-commerce & e-tailing

• Market place: online platform on which companies (and consumers) sell • Online expenditure: spending per user who purchased goods or services goods and/or services. online.

• Logistics Performance Index (LPI): The Logistics Performance Index (LPI) • Online Retail (or e-retail, electronic retail or retailing or even e-tailing): measures the “logistics friendliness” of 155 countries. It helps countries the selling of retail goods and services on the Internet. In the limited sense identify the challenges and opportunities they face in their trade logistics of the word, sectors such as online leisure travel, event tickets, downloading performance and what they can do to improve this. The Index is developed music or software are not included. Online-only retail shops are often by the World Bank and is based on a worldwide survey of operators, such as referred to as pure players. global freight forwarders and express carriers. • Penetration levels: the percentage of a population using the Internet, • Mobile commerce (or m-commerce): the ability to conduct commerce mobile phones, smartphones or tablet devices. using a mobile device e.g. a mobile phone, a PDA, a smartphone, a tablet or other (emerging) mobile equipment. • Real economic growth rate: a measure of economic growth from one period to another expressed as a percentage and adjusted for inflation. The • Mobile subscriptions: mobile cellular telephone subscriptions are real economic growth rate is a measure of the rate of change that a nation's subscriptions to a public mobile telephone service using cellular technology, gross domestic product (GDP) experiences from one year to another. which provide access to the public switched telephone network. Post-paid and prepaid subscriptions are included (source: Eurostat). • Retail sales: the selling of mainly goods from businesses to individuals from a traditional or so-called bricks-and-mortar shop. • Networked Readiness Index (NRI): The NRI measures the tendency for countries to exploit the opportunities offered by information and • Statcounter research method: Statcounter is a web analytics service and communications technology (IT). The NRI comprises three components: the their tracking code is installed on more than three million sites globally. environment for IT offered by a given country or community, the readiness of These sites cover various activities and geographic locations. Every month, the country's key stakeholders to use IT, and the usage of IT among these Statcounter records billions of page views to these sites. For each page stakeholders. view, they analyze the browser/operating system/screen resolution used and they establish if the page view is from a mobile device. They calculate their • Online buyer (or e-shopper, e-buyer): an individual who regularly bought Global Stats on the basis of more than fifteen billion page views per month, or ordered goods or services through the Internet. by people from all over the world onto more than three million member sites.

www.ecommercefoundation.org Definitions related to the Internet, e-commerce & e-tailing

GOMSEC aims to provide guidelines for measuring Definition of B2C ecommerce sales Online purchases of the following items are excluded and monitoring B2C ecommerce. As a result, all from GOMSEC: countries worldwide are able to provide data with “Any B2C contract regarding the sale of goods • Transactions between private respect to the penetration of B2C ecommerce in a and/or services, fully or partly concluded by a individuals/consumers (C2C), such as auctions standardized way. All Ecommerce Foundation figures technique for distance communication.” and marketplaces, and between businesses and estimates are based on GOMSEC, unless stated (B2B) otherwise. Technique for distance communication: means • Online gambling and gaming that can be used for communication regarding the • Cars and other motor vehicles The GOMSEC reports on sales figures for the total offer made by the trader and the conclusion of a • Houses and real estate B2C ecommerce worldwide and for each country contract, without the necessity of the consumer and • Utilities (e.g. water, heating and electricity) separate in the country profiles, based on total sales trader being in the same place at the same time. • Mortgages, loans, credit cards and overdrafts of goods and services. • Savings accounts, funds, stocks & shares and Contract: a contract whereby use is made, either bonds These total sales of goods and services are based on solely or in part, of one or more techniques for the areas/sectors/classification of areas and distance communication within the framework of a B2C ecommerce therefore includes all online sectors, as stated on the next few pages. system organized by the trader for the distance sale transactions between businesses and consumers of goods and/or services, up to and including the using desktop computers, laptops, tablets, All data reported in the national currency of the moment that the contract is concluded. smartphones, point-of-sales and smart-wearables, for country involved is converted into euros according to instance through online shops, physical stores the average (annual) rate of exchange as provided Classification of B2C ecommerce (“online instore”), email, QR codes, catalogs, etc. B2C by, preferably, the European Central Bank (ECB) or ecommerce includes Value Added Tax (VAT) or other the national bank of the particular country. The The following classification on the next few pages sales tax, delivery costs and apps, but excludes reference period that is used for this was from 1 provides an overview of areas and sectors included returns. January to 31 December of each report year. in GOMSEC. Growth rates are calculated and measured by the B2C ecommerce sales in the national currency.

www.ecommercefoundation.org Global Online Measurement Standard for B2C ecommerce (GOMSEC)

Media & Entertainment Electronics Music (physical, download & streaming)/Spotify based on new subscriptions Consumer Electronics Information Technology (IT) Household Electronics Video (DVD, Blu-ray, downloads) Photo equipment IT hardware (PCs, laptops, MDA: Games hardware & games software tablets, etc.) air-conditioning, Books & e-books Audio equipment Computer Software dishwashers, wash machines and other Apps white goods New subscriptions newspapers ands magazines (no single copy sales) TV/video equipment Music instruments

Car electronics USB sticks, DVD/CD- SDA: equipment for Fashion (navigation, audio, recordable, ink cartridges, personal care, home Clothing Shoes & Personal lifestyle etc.) computer accessories comfort, kitchen appliances Underwear & Upperwear Shoes Children's wear Swimwear & Sportswear Jewelry, Bijoux, Watches & others fashion accessories (e.g. sunglasses) Nightwear & legwear Bags, wallets, suitcases Sports & Recreation Sports hardware (e.g. soccer shoes, tennis rackets) Toys Bicycles & accessories Indoor and outdoor toys Articles for camping and recreation

www.ecommercefoundation.org Global Online Measurement Standard for B2C ecommerce (GOMSEC)

Home & Garden Food/Nearfood/Health Furniture and kitchens Food/Nearfood Health & Beauty Food & Beverages Personal care & Hygiene Floor and window coverings (e.g. curtains and blinds) Fresh produce Baby care Home textiles Packaged consumer goods Perfume Cookware (sets), kettles and oven equipment Detergents/household cleaning OTC Table and kitchen articles Animal feed Articles for cleaning, wash and store Decoration Tobacco Lamps and fixtures DIY-articles Garden articles Flowers and plants (in home)

Other: Products Cars components Telecom Glasses and contact lenses Smartphones, mobile phones & mobile devices Stationery Telefax and answering machines Pictures and photo albums Headsets & Accessories (mobile) phones Pet supplies Prepaid cards and tariffs of new phone subscriptions Erotica

www.ecommercefoundation.org Global Online Measurement Standard for B2C ecommerce (GOMSEC)

Travel Package Travel Flight Tickets & Accommodations Insurance Package travel Flight Tickets New indemnity, Life and Health Insurances Private transport if booked through a Hotel stays Liability insurance ANW-gap insurance Health Insurance – tour operator Apartment/bungalow/camping site Car insurance (insurance for receiving a Base -> all of the above not booked in Fire and theft insurance payment in addition to a Health insurance – combination with other travel-parts survivor's allowance) additional

Bike/caravan/motorbike/ Annuity insurance Disability insurance – Scooter insurance Pension entrepreneurs Event Tickets Accident insurance Life insurance Disability insurance – Tickets for concerts and festivals Boat insurance Funeral insurance private Tickets for (movie) theaters Legal assistance insurance Endowment insurance Mortgage-related Tickets for zoos and amusement parks Home insurance based on savings disability insurance Tickets for museums Travel insurance Endowment insurance Mixed insurance Tickets for sports games (continuous/annual + short based on investments (=endowment term) insurance + life Insurance package insurance) Other: Services New subscriptions to dating service Other services

www.ecommercefoundation.org Sources used in the report Ipemed Ipsos itwebafrica.com Jumia Lloyds Bank Trade The report could only be realized by consulting a great number of valuable CIGI lordeys.com A.T. Kearney moroccoworldnews.com sources. These were available in various countries and regions in Europe and Aiken, K. Payza around the globe. The wide variety of sources include public domain publications, allafrica.com Population Pyramid Bloomberg PPRO blogs, websites, industry and financial specialist publications, regional and local Boush, D. Practical Ecommerce news, annual reports, and press releases. CIA World Factbook practicalecommerce.com CMI Prisync.com CNN pymnts.com Sometimes the information sources are contradictory and sometimes different Ecommerce Foundation Quandl Ecommerceguid.com Santandertrade.com figures and data were given by varying sources within the same country, for Economist Intelligence Unit Semanticscholar.org example due to different definitions. In our reports we have mentioned the different eMarketer SimilarWeb eShopWorld StatCounter sources, definitions and outcomes of such reports, studies and interpretations. export.gov Statista Fin24.com The Guardian gepaghana.org The Paypers The report is based on information that we consider reliable, but we cannot vouch GSM Association UNCTAD Gulf-times.com UNECA for it being completely accurate or complete, nor should it be relied upon as such. gz.com United Nations Opinions expressed are our current opinions as of the date of this report. Hootsuite Webcoupers.com ifrnd.org World Bank IMF Worldomters Internet World Stats ZoomTanzania

www.ecommercefoundation.org About Ecommerce Foundation

Our History Ecommerce Foundation is an independent organization, initiated by worldwide national ecommerce associations and online and omnichannel selling companies from industries such as retail, travel & finance.

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www.ecommercefoundation.org Ecommerce Foundation Services

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