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

Over the past five years, Senegal's startup industry has gained the attention of many investment and venture capital funds. Thus, the moment seems to be ripe for boosting the local tech ecosystem, to hatch even more golden nuggets.

The French Embassy in Senegal and the General Delegation for Rapid Entrepreneurship of Women and Youth (DER/FJ) officially launched this Monday the "Support for the acceleration of Senegalese Tech companies" program.

A partnership agreement was signed to this effect by Mame Aby Seye, the General Delegate to the DER/FJ, and the French Ambassador, Philippe Lalliot. With the expertise of the Public Investment Bank of France (Bpifrance) and the French Development Agency (AFD), the two partners have each mobilized €2  million to support the development of Senegal’s entrepreneurial tech ecosystem.

According to Mame Aby Seye, besides financing companies, the project “aims to support networks of Senegalese investors but also make Senegalese startups more visible to investors from the African and European continents.”

BPIfrance and AFD's support is the fruit of strategic steps taken to benefit innovators, notably on the regulatory and financial fronts. These efforts stimulated the growth of the startup industry and contributed to the emergence of Senegal’s first unicorn, Wave, in September 2021. Now, the ecosystem needs to be better structured to spur its maturity and birth new super startups.

Isabelle Bebear, BPIfrance's Director of International & European Affairs, said that "the digital community hosted on Bpifrance EuroQuity, led by the DER and animated with the actors of the Senegalese Tech ecosystem, will allow startups to connect to international investors and other ecosystems in Africa and Europe."

Muriel Edjo