World Bank forecast the economic growths in some countries have increased greatly. There are several reasons why the economy has grown so fast. As you know, Africa is known for its poor countries. Middle-class expansion, friendly market business, and also rapid urbanization have changed the business trends in the region.
Countries’ government across Africa has realized that the small and medium sector of business can be used as a source of job creation and economic growth. Some major countries even make everything easier for the entrepreneur to run a business. Some digital tools are also utilized these days. Now people in Africa familiarize themselves with some digital tools available in the marketplace where they can operate some streamline or online processes like opening a bank account for business, tax submission, registering a brand new business and etc.
Digital tools used to be very expensive in Africa especially for small businesses. On the contrary, people are easily able to access the internet to gain their business. Things like data entry, email marketing, customer service, and accounting make everything is easy. Nowadays, people use their phones as their gateway to information and knowledge from posting something on social media, complaining about things, buying online tickets, writing reviews, and many others. There are huge populations that make use of the internet in Africa. This is a business trend that should be utilized.
Africa is known for its large quantity of resources in both mineral resources and agriculture. Africa has struggled from transforming these resources into persistent economic development. New investments and innovations change and create an exciting occasion for business. Nigeria is considered the largest marketplace in the continent as it has a large population. Foreign investment is also growing rapidly mainly in resources sectors. The country is known for its power deficiency makes it a great opportunity for business.
Skeptical about online retail
On the other hand, internet business reality in Africa diverges from what is accessible in the western world. The optimism clouds some noticeable challenges in the continent to deal with. That’s why internet commerce is not profitable.
Many Africans are still skeptical about buying things online. They prefer buying things offline which is easy for them to choose items cautiously. On the contrary, people in Africa are enjoying the growth of the internet as they can access the web easily. With the high cost of bandwidth, internet business in Africa is challenging.
Since internet business needs delivery through the postal system, most countries in Africa only utilizing motorbike to deliver things. Of course, it will increase the cost that affects the price and selling. Literally, markets are everywhere with low prices offered and e-commerce companies have to overcome this to keep the company exists. Since many Africans cannot read and write, it is difficult to grow internet business in Africa. Low literacy capability affects the e-commerce business as everything displayed with texts and images.