Rapid growth in e-commerce will create new opportunities – and challenges – for logistics companies.Digital payment penetration in sub-Saharan Africa has risen from 23% of people having made a digital payment to 46% in less than eight years, according to the EBANX Beyond Borders 2023 – 2024 report.It singles out Tanzania, Ghana, Uganda, and Zambia as having significant smartphone penetration, low cost of data, and a push for digital services."These are the sleeping giants of Africa," says Wiza Jalakasi, director of Africa market development at EBANX."There is great potential for digital and physical goods sold on l i ne."Support for the growth of e-commerce has come from a joint $1.5-million project by the African Development Fund and Smart Africa Alliance to streamline digital trade and e-commerce policies across 10 African countries.The Institutional Support for Digital Payments and e-Commerce Policies for Cross-Border Trade Project will evaluate policy gaps in the digital trade and e-commerce ecosystems of Côte d'Ivoire, Benin, Ghana, Liberia, Uganda, South Sudan, Zimbabwe, the Republic of Congo, São Tomé and Príncipe, and the Democratic Republic of Congo.The project will see to the implementation of regional training and capacity-building programmes focusing on cross-border e-payment and e-commerce for governments, private sectors, and small and medium-sized enterprises.Putting the right policies, enabling legislation and training in place are only one part of the challenges.The other is the physical infrastructure. Josephine Wawira, author of AfricaBusiness.com, says the growth of e-commerce will depend on the quality and efficiency of logistics networks – from intra- and cross-trade to financial transactions in payment of goods and services.She points out that one of the biggest logistics hurdles holding back the industry is the lack of street addresses systems in most African countries.This, coupled with poor road networks, makes it more challenging to deliver products to customers.African logistics companies are, however, resourceful.Courier companies in Kenya and Nigeria are overcoming traffic jams and potholed roads by using motorcycles.Drones are being used by Zipline in Rwanda and Astral Aerial Solutions in Kenya.Driving demand will be Africa’s digital-savvy youth.Africa has the youngest population in the world, with more than 600 million aged between 15 and 35 years.
