(Ecofin Agency) – According to various estimates, the size of the African online commerce market could reach $112.73 billion in 2029. The Central African Republic wants to take advantage of this windfall.
The government of the Central African Republic (CAR) aims to make e-commerce an economic asset, both for local small and medium-sized businesses and for the State. To this end, he reflected on the challenges and opportunities of the sector, during a workshop opened on Wednesday, November 20 by Hyppolite JP Ngate-Robard, Minister of Small and Medium Enterprises (SMEs) and Private Sector Promotion.
In his address to the participants in the meeting, the minister maintained that it “aims to ensure that the involvement of our SMEs in the international market can be intensified; because, if from a digital point of view our companies are not visible, they will not be competitive and it is the national economy which will take a hit.”
But to truly benefit from e-commerce, the CAR must first meet a few conditions essential to its success in the country. Internet penetration rate is one of these conditions. According to data from DataReportal, the Central African Republic had a penetration rate of 10.6% at the start of 2024, or 616,600 Internet users, for a population of 5.9 million people.
The cost of Internet access also remains high in the country. In CAR where mobile is the most popular way to access the Internet, the cheapest mobile broadband plan, providing at least 2 gigabytes (GB) of monthly mobile data using at least 3G technology, represented 27.2% of the monthly gross national income (GNI) per capita in 2023, well above the African average which is 4.5%, according to the International Telecommunications Union (ITU). According to the institution, a mobile Internet package is considered accessible if it is less than or equal to 2% of the monthly GNI per capita. The high cost of mobile and fixed devices is also another challenge that the CAR will face. The World Bank estimates that 21.71% of the population owned a mobile phone in 2022 compared to an African average of 40.55%.
Beyond the technical challenges, the CAR will also have to provide a response to the regulatory requirements of the sector, in particular a law on e-commerce which defines the framework for the sale and purchase of goods and merchandise on the Internet, as well as the practical provisions in cases of fraud or any illegal behavior. Regulations on the protection of personal data are also necessary to protect consumers from various abuses. Added to this is the need to resolve electricity problems.
According to the report “Future of Commerce: Outlook for 2025”, published last October by the digital economy consultancy TechCabal Insights, the African e-commerce market is expected to experience significant expansion. Its size, estimated at $55 billion in 2024, could reach $112.73 billion in 2029, representing growth of 105% in just five years. A report from Lithuanian fintech Nikulipe, published last June, takes a more cautious approach in its forecasts. Entitled “Payments and E-commerce in Africa 2024”, it estimates that the African e-commerce market would increase from $30.71 billion in 2024 to $45.72 billion in 2028, thus recording a growth of 48.88 % over a period of four years.
For the Central African Republic, successfully capturing part of the estimated wealth of e-commerce in Africa will not only contribute to the financial health of local economic operators, but will also benefit the State by raising, among other things, the level of tax resources. .
Adonis Conrad Quenus
Also read:
10/22/2024 – The African e-commerce market will double in 5 years, to $113 billion (report)
07/12/2024 – African e-commerce market expected to grow by 49% by 2028 (report)
Given the security challenges prevalent in the Central African Republic, what specific strategies and partnerships could be explored to ensure the safe and reliable delivery of goods within the e-commerce ecosystem?
## World Today News: E-Commerce in the Central African Republic
**Introduction:**
Welcome to World Today News. Today, we’ll be discussing the Central African Republic’s aspirations to leverage the booming African e-commerce market. Joining me are [Guest 1 Name], an expert in digital economics specializing in Sub-Saharan Africa, and [Guest 2 Name], a policy analyst with experience in ICT development in the CAR.
**Section 1: The Potential of E-Commerce**
* **Host:** The article highlights projections for the African e-commerce market to reach $112 billion by 2029. What makes this sector so attractive, and what specific opportunities does it present for a country like the Central African Republic?
* **Guest 1:** I believe the growth potential stems from several factors, including increasing smartphone penetration, a young and tech-savvy population, and a growing middle class demanding convenient shopping experiences. For the CAR, seizing this opportunity could mean boosting local businesses, creating new jobs, and diversifying its economy away from traditional sectors.
* **Host:** Guest 2, what are some of the unique challenges and opportunities the CAR faces in comparison to other African nations venturing into e-commerce?
* **Guest 2:** The CAR’s context is complex. While there’s a strong desire for economic growth, it needs to address issues like internet accessibility and affordability. Low penetration rates and high costs are major obstacles. However, the government’s emphasis on SME involvement is positive, as they are often overlooked in e-commerce strategies.
**Section 2: Overcoming Challenges**
* **Host:** The article outlines significant challenges, including internet penetration rates, cost of access, and lack of regulatory frameworks. Guest 1, how crucial are these factors, and what solutions can be implemented to address them effectively?
* **Guest 1:** These challenges are critical roadblocks. Increased investment in infrastructure, promoting affordable data plans, and fostering public-private partnerships for network expansion are essential. Additionally, developing a legal framework that protects consumers and businesses is crucial for building trust in the e-commerce ecosystem.
* **Host:** Guest 2, from a policy perspective, what role can the CAR government play in facilitating the development of a thriving e-commerce sector while ensuring equitable access and participation?
* **Guest 2:** The government needs to provide incentives for both local and international investors in the telecom sector. This can include tax breaks, streamlined licensing processes, and supporting infrastructure projects. They also need to prioritize digital literacy programs to empower citizens to participate in the digital economy.
**Section 3: The Road Ahead:**
* **Host:** Looking ahead, what potential impact could a successful e-commerce sector have on the CAR’s socio-economic landscape?
* **Guest 1:** A flourishing e-commerce sector could significantly contribute to poverty reduction by creating jobs, empowering small businesses, and increasing access to goods and services. It can also boost tax revenues for the government, enabling investments in public services and infrastructure.
* **Host:** Guest 2, what advice would you give to stakeholders – from government officials to entrepreneurs – who are invested in seeing the CAR succeed in this venture?
* **Guest 2:** Collaboration is key! Stakeholders must work together, sharing knowledge, resources, and best practices. Entrepreneurs need to prioritize innovation and tailor their solutions to the CAR’s specific needs. The government needs to create an enabling environment through supportive policies and investments, ensuring a sustainable and inclusive e-commerce ecosystem for the benefit of all.
**Conclusion:**
* **Host:** Thank you to both our guests for sharing their valuable insights. The journey towards a thriving e-commerce sector in the CAR is undoubtedly challenging, but the potential rewards are immense. We look forward to witnessing the progress and innovations that will shape the future of e-commerce in the region.
