Africa is gradually witnessing a significant increase in the production of goods as a result of the development in equipment, infrastructure, and digital technology. There has been mass production of goods, with the producers or manufacturers looking for the next available market for their products. This is what gave birth to e-commerce in Africa. That singular desire to reach a wider audience and conquer different markets contributed to the growth of e-commerce in Africa. There is no better time than now to do business in Africa. This is because Africa has the target audience for all kinds of goods. That is why some marketers have taken their buying and selling to online platforms because there is an emerging market in the online space. However, some barriers pose a stumbling block to the growth of this online market. Below are some of the barriers to e-commerce in Africa:
1. Cybersecurity issues: There are many stories flying around about the use of cyberspace to commit crimes. This has put fear in the minds of people because nobody wants to fall victim. Nobody even want his or her child or even someone close by to fall victim. There are many issues arising on the cyberspace. It’s very disheartening and discouraging to hear that someone lost his or her life savings to Internet fraudsters. One might become wary of doing any business online because of that. So, the issue of cybersecurity is a barrier to the growth of e-commerce in Africa.
2. Lack of adequate funding: When there is enough money, there is always a way. People tend to hold back from engaging in e-commerce because they don’t have enough money. It’s someone who has eaten to his fill that can fully participate in any online business engagement. So, the inability to raise enough capital is a barrier to the growth of e-commerce in Africa. There are times that people will wish or plan to enter the market but the cash at hand or money in the account is not commiserate with the plan. The worse part is when there is no financial help or assistance coming. This becomes a problem.
3. Poor delivery system: Even when there is money, there is a poor delivery system across Africa. There are bad roads everywhere and some locations are not accessible. Don’t be surprised that some places are not captured by Google Maps and you may lose your way if you try finding them online. So, how to transport the goods you have received orders for to the final destination is another barrier to the growth of e-commerce in Africa. We have seen videos of ‘what I ordered versus what I got’ online and it’s really shameful. The transportation system is very slow and unreliable. It takes a whole lot of time to deliver, and even money too. In the Western world, people can order something and it is delivered in minutes but not in Africa.
4. Lack of trust: At the root of all these barriers is the erosion of trust in the financial systems in Africa. People prefer doing business in a physical setting because of the issue of trust. In a physical setting, there are some body languages that will raise suspicion but cannot be seen in an online arrangement. A lot of people have fallen victim to or know someone who has fallen victim to internet fraudsters. It is a case of once bitten, twice shy. The fact that there is nobody you can trust, even the officials controlling the system, poses a barrier to e-commerce in Africa.
5. Government policies and regulations: There are many policies and regulations made by the governments of countries in Africa that end up becoming a barrier to e-commerce. Such policies are inarguably aimed at sanitizing the system and ensuring compliance with global standards, but they also discourage people from engaging in e-commerce. Such policies will ensure that each profit you make is tracked and the tax is deducted as due. Also, some regulations like registration and licensing could also pose a huge challenge to the growth of e-commerce in this continent called Africa.
Below Are The Ways to Break Down These Barriers In The Emerging Market:
i. Putting security protocols to minimize fraud: There is a need to ensure the safety of people and their information in the online space. Measures have to be taken to reduce the incidence of fraud. This could be done by entrenching security protocols that are not easy to manipulate. There should be a deployment of cybersecurity experts who will flag down any suspicious transaction. These experts should also be able to trace and report fraudsters as soon as possible. This will bring sanity back to the online space. It will be a solution to the barrier posed by the various cybersecurity issues we are having in Africa.
ii. Enabling Digital Payment: Good, fast, and convenient payment options in different digital platforms should be made available. This will create an enabling environment and also increase the ease of doing business online. People should be allowed to pay with their Automated Teller Machine cards, whether it is a Mastercard or a Visa card. There should be a way by which the payment of any goods online is made simple and seamless. This could be done by creating digital apps or websites where buyers and sellers can do business effectively and effortlessly. Network provision should also be made available to avoid glitches and malfunctions.
iii. Build Loyalty and Trust: It must be noted here that the major step towards breaking the barriers to e-commerce in Africa is to build trust and loyalty. People can only buy from those they like and trust. They will patronize the person whose products are not only affordable and available but also tested and trusted. Building trust requires audience engagement. Audience engagement can come in the form of requesting feedback from the customers. It can also mean attending to complaints from customers promptly. This is because the customer is always right. Customers will be loyal if they are made to feel important and valued.
iv. Make Legislations that support Market Growth: The fact that some countries can use legislations to influence market structure and dynamics calls for serious concern. African leaders should endeavor to put into practice the saying that Charity begins at home. Legislators should strive to enact laws that support e-commerce and the growth of the emerging market. This should be done for the benefit of the people, not for selfish political interest. The truth is that the progress of the African countries is dependent on the priorities of their leaders. If there are leaders in Africa who can champion the digitalization of the economy and the growth of e-commerce, all the barriers to the emerging market will be a thing of the past.
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