It is human nature to use “retail therapy” to react to various personal crises. During a pandemic, it can scale up in waves. An escalation in online shopping is inevitable as people buckle down to explore how eCommerce facilitates their purchases during lockdowns and travel restrictions.
United Nations data confirms that the global eCommerce sector jumped to $26.7 trillion in 2019-2020. The Republic of Korea marked the most prominent growth,followed by UK, China, the US, Australia, Singapore and Canada. Here, we look at how one of the African nations is rising above the challenges of COVID-19 with a vibrant eCommerce ecosystem.
As part of their 7th National Development Plan (2017-2021) (7NDP), Zambia established stimulating economic development and poverty reduction objectives.The eCommerce sector was considered to play an essential role as Zambia moved forward, empowering 7NDP’s economic transformation. As the pandemic spread,its strict lockdown rules closed numerous traditional businesses. But eCommerce businesses found their silver lining to extend the scope of businesses.
For example, Zambia’s food delivery services rose to a large-scaled business-tobusiness (B2B) eCommerce network and reported 100% growth in 2020. Travel agencies branched out to develop online platforms for car rental and transport to essential services during lockdowns. The use of mobile devices multiplied as well,particularly in utility and obligatory payments to the government. Other businesses that kept growing included information and communications technology (ICT) and electronics, landscaping commodities, pharmaceuticals, education via e-learning,assemble-yourself furniture, household appliances and personal care products. The banking sector developed its digital portals and encouraged customers to use financial services via platforms to decrease handling fees for money transfers and online payments.
As Zambians are heavy social network users, social media channels became one of the pillars of its eCommerce growth through free sharing and posting advertisements. Another pillar of success is the government’s vision to refresh Zambia’s eCommerce prowess. It is currently developing a strategy to improve cybersecurity, handle cybercrime, and improve data protection and online transactions. Government support is also given to overcome challenges such as lack of access to the internet and power and rectify high broadband services rates
