eCommerce in Rwanda
The pandemic has accelerated eCommerce adoption across the globe and the trend is no different in countries such as Rwanda, Tanzania and Ethiopia. Our smart warehouse integrated eCommerce solutions for Africa region helps improve operations and brings high level of automation and transparancy for freight logistics, warehousing companies in the region
As more consumers globally switch to buying online, it will be critical for Rwandan companies to improve their online capabilities to be able to rapidly respond to changing consumer preferences. Large organizations to Micro, small and medium-sized enterprises (MSMEs) in Rwanda, Ethiopia and Tanzania are eager to take advantage of farm automation digital markets where virtually no physical borders will inhibit them.
eCommerce in Rwanda
Rwanda shows great promise for e-commerce and the sector is growing quickly with several new tech start-ups and international companies that started activities in the country in the last couple of years. The government is actively supporting online retail and the ICT sector in general and has put in place measures to protect e-shoppers. Among the factors that hinder the sector’s growth are inadequate international bandwidth, relatively high cost to access the internet, high electricity costs, high transportation and logistics costs. The mobile penetration rate is at 76% M-commerce is getting very popular. Online payment is becoming a popular method of payment and social media is emerging as important marketing media which force businesses to enter the e-commerce market.
Looking at the potential of the industry under normal economic conditions, Revenues were expected to show an annual growth rate (CAGR 2020-2024) of 20.9%, resulting in a projected market volume of US$138m by 2024. Also, user penetration in the segment is expected to hit 31.7% by 2024. Fashion, Food and personal care & electronics and media segment are the most prominent e-commerce sectors in Rwanda fuelling the e-commerce economy and is expected to show an annual growth rate of 17 – 33% by 2024.
COVID-19 is the accelerating the eCommerce related Rwandan businesses. Therefore, one particular lesson specifically for businesses is to understand the trends and act on them. Digital transformation was upon us even before COVID-19, but now, more businesses will take it seriously and take their customers to online sales channels. During this period, those businesses which initially had the capabilities to serve customers digitally gained the major advantages of e-commerce and digital trade. Thus adopting e-commerce portals and online sales platforms will be a relevant parameter assessing market positions coming to new normal. It is also important for the government to operationalise its strategy, strengthen the regulatory environment in order to build trust and increase SME integration in online B2B and B2C platforms.
Contact us to know more about our solutions for eCommerce in Rwanda, integrated warehouse automation and digital agri solutions providing just in time inventory management, cold chain and indoor tracking facilities.