Online cross border trade continues to grow dramatically worldwide. Due to its terrain and infrastructure, Africa has been one place slower to catch on to the trend. But as Mark Niu reports, one entrepreneur believes that only means there's more potential for the market to grow.
At Silicon Valley's eBay headquarters, head of US exports Tomas Ponce De Leon eyes a new venture. It's the Made For Africa eBay storefront, which sells jewelry, clothes and crafts all from Africa. But it's a two-way street-allowing U.S. vendors to get into Africa too.
TOMAS PONCE DE LEON HEAD OF US EXPORTS, EBAY "The African E-commerce market is estimated at 24 billion, and it's growing at 25-percent on a year to year basis. So there is a ton of opportunity. Going in and shipping to Africa is quite complicated, right And that's where you have great partnerships -- Mall for Africa coming in and really taking the pain point away and really making it easier for that seller to basically enable their sales in Africa."
The driving force behind Mall For Africa is Nigerian American Chris Folayan. He created the African Made Products Standard to guarantee authenticity and quality of the goods that come from Africa. And for African buyers, the site allows them to buy products from more than 200 US stores. Folayan came up with the idea when he was prevented from flying to Nigeria with ten suitcases filled with US products even though he was willing to pay for the excess baggage.
CHRIS FOLAYAN FOUNDER AND CEO, MALL FOR AFRICA "It donned on me that every time I went back home I kept taking more and more suitcases. People had access, they knew what they wanted and they wanted to buy products directly from the US but they could see it, find it on the internet but nobody shipped to the continent directly."
This Mall for Africa warehouse in Oregon is where US stores first send their products. From here, Folayan says they can ship these products to buyers in Nigeria, Kenya, Rwanda, Mauritius or Ghana within just three days.
CHRIS FOLAYAN FOUNDER AND CEO, MALL FOR AFRICA "We figured out what was the best way to get products into the country, making sure we are paying our taxes and duties. So we came up with the idea of having pickup addresses all across the country and If you had an address that was kind of fuzzy, just pick up your local item at your local pickup location. "For payment, we created something called the Mall For Africa webcard which is pretty much our own payment platform. We allowed people to pay in local currency because many people don't have credit cards in Africa."
MARK NIU SAN FRANCISCO Folayan says they're currently shipping three to seven tons of U.S. goods to Africa every day. That's more than double the amount they did just one year ago.
Mall for Africa is also incorporating their concept into another brand called Mall For The World, which helps bring US and African products into markets worldwide. Folayan says they have big plans to enter the China market next year. Mark Niu, CGTN San Francisco.