Africa-Press – Uganda. Global market for goods and services for sale and purchase is expanding at unprecedented rates due to increased internet usage, tech experts have observed.
According to a Trademark East Africa TMEA (2020) study, 91 percent of thousands sampled in Uganda made online purchases in 2020, 86 percent in Kenya, 81.3 percent in Tanzania, 58.8 percent in Burundi and 50 percent in Rwanda and South Sudan each, indicating a significant potential for growth in online market delivery channels in these countries.
“The most prevalent way of payment is cash or mobile money transfers, both of which are accepted worldwide. E-commerce is gaining popularity swiftly even though internet buying is a relatively recent phenomenon in Uganda,’’ the study notes.
In Uganda, tech experts say “extensive usage of mobile money (telephone-based financial transactions) and the fast expansion in mobile phone use across the nation’s E-Commerce business is continuing to grow at a rapid rate.”
Even though there are only 16.7million bank accounts in Uganda, there are over 30million mobile money-phone accounts in the country.
“The increased demand for online shopping, and the transition to digital, played to the company’s strengths in addition to high-quality personal,” Hong-Kong based multi-marketing company Qnet said in a statement after it posted a record-breaking growth of up to 65% in some African markets according to the study.
Following President Museveni’s adoption of the National Payment Act 2020, Uganda’s central bank took over regulation of Uganda’s mobile money business in May 2021, replacing the National Payment Authority. Under this Act, the Bank of Uganda (BoU) became the first regulator of financial technology and mobile money transactions.
Now, E-Commerce in Uganda stands to benefit from many aspects including the growing middle class that has established need for consumer products originating in the United States and other nations.
“A section of Ugandans usually consider such goods as more superior in quality than those from China and other countries,” data indicates.
Those aged 18-30 make up the vast bulk of online businesses and clients in the East African nation of over 41million people.
Before the Omicron Covid-19 variant emerged early December, the International Monetary Fund (IMF) had raised its projection for economic growth in 2021 to 6%, up from 5.5%, and 4.4% growth in 2022.
Some economists now reason that “the upgraded IMF economic outlook will very much depend on the pandemic patterns worldwide.”
Meantime, the Trademark East Africa TMEA (2020) report shows that the 3-year Compound Annual Growth Rate (CAGR) has persistently risen despite the hiatus occasioned by Covid-19.
“From 2017, the direct selling industry saw a CAGR of 3.0% (excluding China), demonstrating resilience where most commercial sectors are experiencing a downward trend due to the pandemic,” the study informs.
IMF estimates
Amongst people, shaky economic times have forced renewed awareness of the need to establish more income streams, and for those looking to start a business, direct selling has somewhat offered an attractive opportunity to start with little capital or incomes to meet operational and logistics hassles.
The International Monetary Fund (IMF) estimates that the global economy shrunk by 4.4% in 2020 even as most world economies are struggling with rising unemployment, all except for one industry- direct selling.
The latest Direct Selling report, published by the World Federation of Direct Selling Associations (WFDSA), shows global direct sales increased by 2.3% year-on-year, from US$175.3 billion in 2019 to US$179.3 billion in 2020.
For More News And Analysis About Uganda Follow Africa-Press
