E-commerce platforms in Rwanda reshaping their strategy amid COVID-19

In the midst of the global COVID-19 pandemic, local online businesses in Rwanda are experiencing a surge in sales as consumers turn to e-commerce platforms for their shopping needs. One such business, Umuji.com, has been making record sales despite facing challenges brought on by the lockdown. Andrew Gatera, the Managing Director of Umuji.com, shared insights on the company's strategies for sustaining momentum during an interview with CNBC Africa. Gatera highlighted the impact of the lockdown on their operations, noting that reaching out to vendors and enrolling new merchants became challenging due to the restrictions. The company, which is relatively new in the market, faced difficulties in fully rolling out their services as a result. However, Gatera emphasized that while reaching out to merchants was tough, engaging with customers proved to be more accessible, leading to a notable increase in website traffic. When questioned about the number of visitors on their website, Gatera refrained from providing specific data but mentioned a significant growth in sales. Umuji.com focused on offering essential home products, which became particularly popular during the lockdown period. Gatera expressed optimism about the enthusiasm shown by customers, citing an uptick in clicks and product additions to carts. Despite the challenges posed by the pandemic, Umuji.com has managed to retain its employees and maintain a positive working environment. Gatera attributed this to the company's gradual growth and the team's alignment with the company's vision. He noted that the employees fully understood the focus and goals of Umuji.com, which contributed to their satisfaction and commitment to the company. The interview also touched on the unique challenges of e-commerce in Rwandan society, where trust in online transactions remains a hurdle. Gatera acknowledged that the cultural preference for physical interactions with products posed a difficulty for online platforms. Customers often sought assistance in navigating the online shopping experience, reflecting the need for personalized guidance and reassurance in the online buying process. One of the key challenges highlighted by Gatera was the issue of online payments in Rwanda. While the government promotes cashless transactions, reliability and high charges associated with online payments create obstacles for e-commerce businesses. Gatera explained that incorporating payment charges into product pricing impacted the end-user, emphasizing the importance of competitive pricing and efficient payment solutions. Looking ahead, Gatera expressed optimism about the evolving e-commerce landscape in Rwanda, anticipating improvements in payment systems and a growing customer base. As more players enter the market and payment aggregators adjust their charges, Gatera foresees enhanced stability and lower costs for online transactions. By addressing these challenges and capitalizing on the opportunities presented by the digital economy, e-commerce platforms in Rwanda are poised to reshape their strategies and thrive in a post-pandemic world.