E-commerce proved indispensable for the continuation of business activities amid the pandemic in 2020 when the world was hit by social restrictions. As a result, the global revenue of this segment which stood at US$3.351 trillion in 2019, jumped to US$4.248 trillion in 2020, according to Statista.

In Africa, the same trend was observed with e-commerce revenues growing by more than US$6 billion to $27.97 billion in 2020. Despite the growth, Africa’s 2020 e-commerce revenues represented less than 3% of the global revenues. This reflects the continent’s low readiness for new retail opportunities.  

In its report "E-Commerce and the Digital Economy in LDCs: At Breaking Point in COVID-19 Times" published on March 15, 2022, the United Nations Conference on Trade and Development (UNCTAD) listed several negative factors that contributed to Africa's modest global e-commerce performance.

Lack of political interest, difficult access to the Internet, the digital divide, low investments in e-commerce activities, supply chain disruptions, lack of consumer protection and fair competition rules, and the persistent practices of cash on delivery are the main factors listed by the UNCTAD.

A glance at the UNCTAD's Business to Consumer (B2C) e-commerce index -which measures an economy's readiness to engage in and benefit from e-commerce- shows that Africa has been the lowest-ranked in the past six years. For the UNCTAD, the situation must appeal to governments and prompt them to take strong actions to make sure the continent can reap the rewards of the digital economy. 

Since 2017, UNCTAD has been helping countries improve their e-business readiness. Through the eTrade Readiness Assessments (eT Readies), it helps them assess and correct their e-commerce development strategies, the quality of ICT infrastructure and services, trade facilitation and logistics available, the payment solutions as well as the legal and regulatory frameworks. It also points to the skills to be developed and assesses if there is compelling access to finance.

In December 2021, 46 eT Readies requests, including 15 from African countries,  were submitted to the UNCTAD. Of the 15 submitted by African countries, six have been completed, two are still in progress, and seven are not yet processed. 

Muriel Edjo