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Our reporter Li Jiabao

On July 28, 2023, in Mlolongo, Kenya, employees of the e-commerce platform Kilimall sorted goods in the warehouse. Photo by Xinhua News Agency reporter Li Yahui

According to recent reports by South African media, with the popularization of the Internet, the increase in the use of smartphones and the shift in user habits towards online shopping, South Africa's e-commerce industry is developing rapidly. Data shows that by 2025, the value of South Africa's e-commerce industry is expected to exceed 400 billion rand, with annual transactions exceeding 1 billion; by 2027, online shopping is expected to account for 5.7% of South Africa's retail market, and the number of e-commerce users will further increase to 37.9 million.

In recent years, e-commerce has flourished in many African countries, adding new impetus to local economic and social development. At the same time, e-commerce has become one of the key areas of China-Africa cooperation, and China's relatively mature e-commerce development experience provides a reference for Africa.

Become a new economic growth point

Today, the African continent, with a population of over 1.4 billion, is embracing new opportunities in e-commerce. A statistical report released by TechCabal Insights, a digital economy consulting firm, points out that e-commerce in Africa is developing rapidly and has become a new economic growth point in Africa. Data shows that in 2022, Africa's e-commerce turnover is about 32.5 billion US dollars, and it is expected that this figure will increase to nearly 60 billion US dollars by 2027. The number of online shoppers in Africa is also continuing to rise, and will increase from 388 million in 2022 to 610 million in 2027.

As the e-commerce market expands, a number of e-commerce platforms have sprung up in Africa, including Jumia in Nigeria, Wasoko in Kenya, Takealot in South Africa, and MaxAB in Egypt, which are showing good development momentum.

The booming e-commerce in Africa has driven the continuous development of related supporting industries.

In terms of logistics, in March this year, Africa's first e-commerce logistics center was completed at Bole Airport in Addis Ababa, the capital of Ethiopia. The center focuses on e-commerce and express delivery services, providing customers with one-stop services such as cargo consolidation, splitting, sorting, repackaging and labeling.

In terms of payment, the Pan-African Payment and Settlement System (PAPSS) developed by the African Export-Import Bank was launched in early 2022 and is seen as a milestone in the development of Africa's digital economy. The system makes cross-border payments more convenient for traders in the region, reduces corporate transaction costs, and reduces the dependence of cross-border transactions within Africa on third-party currencies. In recent years, a number of third-party payment platforms have emerged in Africa to provide cross-border transfer services for merchants and consumers. The "Global Financial Prosperity Barometer" released by PayU, a Dutch mobile payment service provider, shows that Africa is the only continent where the proportion of mobile payments exceeds that of traditional banks.

"As a kind of modern service industry, the rapid development of e-commerce not only means the rapid circulation of goods and services, but also involves the construction of mobile payment and logistics distribution systems, technological progress, knowledge acquisition and concept innovation, etc." Yang Baorong, director of the Economic Research Office of the Institute of West Asian and African Studies of the Chinese Academy of Social Sciences, pointed out in an interview with our reporter that the development of e-commerce has brought some positive impacts on the African economy and society: first, it promotes the diversification of information sources and provides more ways for African people, especially the younger generation, to obtain knowledge and information. Second, it brings more development opportunities, for example: some African countries have launched small and micro loans for the e-commerce industry to provide funds for small and medium-sized enterprises and entrepreneurs; e-commerce has led to an increase in employment opportunities and promoted the return of local talents in Africa. Third, it promotes the industrial development brought about by Africa's participation in the global technological revolution, so that African people can share the development dividends brought about by technological innovation.

China-Africa cooperation is gaining momentum

On the outskirts of Nairobi, the capital of Kenya, the logistics center of the e-commerce platform Kilimall is a busy scene. The shelves are filled with goods from all over the world, and local employees are methodically selecting goods, scanning codes, and packing them. Outside the warehouse, the "couriers" wearing red Kilimall uniforms are ready to deliver goods to thousands of households...

Kilimall was founded in 2014 and is the first Chinese e-commerce platform to set up overseas warehouses in Africa and achieve 100% online payment. The platform covers three major areas: electronic transactions, mobile payments and cross-border logistics, serving nearly 10 million African users and is one of the favorite shopping websites for local people. Today, more than 8,000 Chinese and African companies and individuals have started businesses on Kilimall, selling more than one million products and providing more than 5,000 jobs in Kenya.

Kilimall, which is active in Africa, has become a vivid epitome of China-Africa e-commerce cooperation.

China is a major digital economy country with relatively mature development experience in e-commerce, digital infrastructure and mobile payments. The "Digital Innovation Project" is one of the "nine projects" identified at the 8th Ministerial Conference of the Forum on China-Africa Cooperation. In recent years, China has signed cooperation agreements in the digital field with many African countries, and has helped Africa's digital infrastructure construction, digital entrepreneurship and innovation, and e-commerce development through financial and technical support, talent training, and other means. At the same time, a large number of high-quality African products are entering the Chinese market through cross-border e-commerce platforms, and Chinese cross-border e-commerce platforms such as Alibaba International Station, Jiku, and Xiyin have also entered the African market.

Yang Baorong pointed out that the cooperation between China and Africa in the field of e-commerce has brought benefits to Africa. Chinese e-commerce companies have entered the African market, providing a large number of jobs and cultivating many e-commerce talents. Exhibitions such as the China-Africa Economic and Trade Forum focus on cooperation in the e-commerce sector and actively promote African products, helping more African "good things" to enter a wider market. China "teaches people how to fish" and helps Africa improve its e-commerce development capabilities in various ways, helping Africa truly participate in the global division of labor and international competition in the digital economy era.

"China's e-commerce development experience and measures can also provide reference for Africa. For example, e-commerce platforms can be promoted to operate on a large scale and with precision; logistics and distribution must 'open up the last mile'; automation levels can be improved in all links to increase efficiency; distribution centers can be built to achieve large-scale and orderly management of similar goods; related industrial chains can be continuously expanded and improved; infrastructure construction can be strengthened to increase the penetration rate of e-commerce; and the construction of a unified national market can be accelerated," said Yang Baorong.

Opportunities and challenges coexist

At present, the AU and African countries attach great importance to the development of the digital economy, including e-commerce. The AU's Agenda 2063 lists the digital economy as a priority development goal. In recent years, the AU has issued documents such as the Africa Digital Transformation Strategy (2020-2030), the AU Convention on Cybersecurity and Personal Data Protection, and the AU Data Policy Framework to implement the digital economy development strategy and promote Africa's integration into the global digital economy system. African countries such as South Africa, Ghana, and Nigeria have also issued policies to encourage and support the development of e-commerce.

With the support of a series of favorable policies, e-commerce in Africa is a blue ocean waiting to be explored.

A recent report on the website of Deutsche Welle pointed out that Africans are gradually accepting the convenience brought by online shopping, but compared with more mature markets such as Asia, Europe and the United States, this trend is still in its infancy in Africa. E-commerce has great potential in Africa, but it still faces challenges. African e-commerce practitioners should attach importance to reputation building, strive to improve logistics efficiency and service levels, and provide goods and services according to local consumer preferences.

Yang Baorong pointed out that there are still many shortcomings in the current development of e-commerce in Africa: first, the relevant infrastructure is still not perfect; second, the economic structure is relatively single, the degree of commodity homogeneity is high, and the role and advantages of e-commerce platforms cannot be fully exerted; third, the development of digital economy in African countries is uneven; fourth, the construction of credit mechanism needs to be strengthened.

"In the long run, promoting the sustainable development of e-commerce in Africa requires many aspects," Yang Baorong analyzed. For example, it is necessary to strengthen infrastructure construction to ensure the smooth operation of networks, transportation, logistics, payment and other links; promote the industrialization process, extend the industrial chain, increase the added value of goods, and cultivate the competitive advantages of e-commerce products; promote the establishment of a unified African market, eliminate barriers to the cross-border flow of goods and services, and reduce the operating costs of e-commerce platforms; accelerate the urbanization process, narrow the urban-rural gap, and increase the penetration rate of e-commerce and the coverage of logistics and distribution; continue to promote technological innovation, empower thousands of industries with digitalization, and improve the level of development of the digital economy; bridge the regional "digital divide" and enhance the level of e-commerce development on the entire African continent.