FOCAC 2018: Egyptian e-commerce growth continues

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Europe

03:04

Meanwhile, market research firm Frost & Sullivan says that the African e-commerce market is expected to reach 50 billion dollars in 2018, mostly in Africa's hub economies, including Egypt. That growth in Egypt will likely continue as Cairo has implemented a plan to double the number of businesses in the country selling products and services online by 2020.

Egypt is a country of over one hundred million people and growing. Two thirds of this population are youth. This makes it a promising market for e-commerce. Only in the last few years has the government encouraged Egyptians to tap into this vast world.

MOHY ABDEL SALAM, FINANCIAL CONSULTANT BEIT AL KHEBRA "This has become one of the priorities by the government recently, to direct people to the online market, especially that the number of Egyptians who log onto the internet has reached eighty million. Growth of the online sector has increased by 16% in 2016 and 24% in 2017, so it's very promising and growing fast."

To reach its potential, the ministry of Telecommunication has promised to provide wider and faster access to the postal services as well as a cheaper, high-speed broadband internet and improved 4G broadband for mobile users. Though an increasing number have been purchasing online, but most prefer to pay cash on delivery.

"I never purchase online using my visa card because of the hacking and online theft. I pay cash when I receive the product."

"I'm afraid to pay with the visa because they could deduct more than the actual amount, it happened to people I know. Hard to trust all websites."

Electronics, women's wear and make-up are the most demanded online. But e-commerce sales are still low at 3.8% of total trade. In the UAE it's 46%. The government is trying to build the culture of online purchasing and finance in Egypt.

MOHY ABDEL SALAM, FINANCIAL CONSULTANT BEIT AL KHEBRA "The government is now beginning to pay all its salaries to state employees online and is transferring all payments for administrative services such as car license renewals or tax and tariff payments to be online as well. This would create a culture of online finance and serves the electronic trade industry."

Only 2% of registered companies in Egypt are in e-commerce. Experts hope the state's plan for 2020 would encourage more youth to set up online companies and shops

YASSER HAKIM CARIO "To be a success, experts are also calling on the government to adopt strict laws and regulations to protect clients from hacking and online crime. This would build more confidence within the population to use electronic payments in the future. Yasser Hakim CGTN Cairo."