E-commerce, which is the buying and selling of services on the internet, is rapidly growing in Africa. Consequently, small and micro enterprises can access global markets besides competing with multinationals. Here’s an article about the applications of E-commerce to African businesses.
Easy access to international markets
The low cost of operation and lack of borders make a business profitable and convenient. Businesses that existed only in the informal sector can finally market their services and products globally. The businesses sell and buy goods and services to a global market at better prices than before. This improves the living standards of the traders and makes businesses more profitable. Moreover, services such as software, media, design, consulting, web development outsourcing are bought and sold as much as physical goods. Applications of e-commerce have made a business thrive in Africa.
Access to information and knowledge of opportunities has greatly assisted digital traders and merchants. This has spurred innovation and development of tech hubs across Africa that create new digital services. As a result, services are exported to markets globally, earning the traders much-needed revenue.
E-Trade, which relies on internet infrastructure and reliable bandwidth is changing the way we do business in the 21st century. This model has allowed African countries to leapfrog their economies and avoid the challenges of brick and mortar establishments. Just like Africa did with mobile technology, e-commerce is a tool that Africa can use to catch up with other leading economies. The benefits will be wealth creation, reduction in poverty levels, and higher incomes. E-trade, which requires a payment gateway, relies on mobile e-payments such as Mpesa and Paypal, which are already well developed in Africa. This can be integrated into existing financial systems such as banking and can be accessed easily on mobile phones at a low cost. Applications of E-commerce is widespread in the continent.
Customs and Excise Services
The success of e-commerce depends on the existence of an effective courier and shipping services. This will operate effectively if; they can operate efficiently across borders. However, the major challenge is corruption in some countries. Also, poor rail, road, and maritime infrastructure in most Africa countries hinder e-trade. Together with existing security concerns such as war, terrorism that continue to affect the growth of this sector. Another challenge to e-commerce is the absence of universal tax systems. This makes customs and excise collection difficult. The transaction of services in the digital space makes it difficult for tax agencies to collect the taxes. This cut across several jurisdictions and require advanced monitoring systems.