How to accelerate women participation in Africa’s e-commerce industry

The landscape of e-commerce in Africa has been evolving rapidly, especially in the wake of the COVID-19 pandemic. As companies navigate the digital space, the International Finance Corporation has conducted a study on women and e-commerce in Africa, shedding light on the challenges and opportunities faced by women entrepreneurs in the industry. Alexa Roscoe, Disruptive Technologies Lead for Gender at the International Finance Corporation, discusses the findings of the report and highlights the key areas where women encounter obstacles and how these barriers can be addressed. Historically, women in Africa have shown ambition and entrepreneurship, with more women entrepreneurs compared to men. However, despite their aspirations, women face significant gaps that hinder their participation in the digital economy, particularly in e-commerce. Access to essential tools such as the internet and mobile phones remains a challenge for women, making it difficult to run online businesses. Additionally, access to finance poses a major hurdle, with women small business owners globally facing a $1.5 trillion financing gap, forcing many to rely on personal savings or networks to start and grow their businesses. The report emphasizes the urgent need to close these gaps to enable women to tap into the potential growth of the e-commerce industry in Africa. The study reveals that women entrepreneurs in Africa were making strides in the e-commerce sector before the pandemic struck, with some women even outperforming men in certain sectors. However, COVID-19 has had a disproportionate impact on women, causing a decline in sales compared to men. To reverse this trend and unlock the $15 billion opportunity in the African e-commerce industry, it is crucial to address the challenges hindering women's success in the sector. One interesting finding from the report is that while more men join e-commerce platforms to start new businesses, women tend to use these platforms to grow existing businesses. Women cite e-commerce as a tool that helps them reach new markets, balance work and family responsibilities, and access valuable training opportunities. By leveraging e-commerce, women have the flexibility to expand their businesses and overcome traditional barriers that limit their success in physical marketplaces. Roscoe highlights the importance of sector switching for women in e-commerce, encouraging them to move away from traditionally male-dominated sectors to higher revenue-generating markets. E-commerce platforms can play a significant role in providing access to financing solutions for women entrepreneurs, bridging the gender gap in access to financial services. By embracing fintech offerings and leveraging online sales records, women can prove their creditworthiness and secure the funding needed to grow their businesses. Furthermore, the study points out that women are less likely than men to invest in advertising and value-added services on e-commerce platforms, making it challenging for their products to stand out. To address this disparity, there is a need for expanded skills training and business development support tailored to women entrepreneurs. By providing comprehensive training on e-commerce strategies and business skills, platforms can empower women to succeed in the digital economy and become leaders in the industry. In conclusion, while women entrepreneurs in Africa face various challenges in the e-commerce sector, there is immense potential for growth and empowerment. By addressing the existing gaps, enhancing access to finance and training, and promoting gender equality in e-commerce, women can fully participate in and benefit from the burgeoning digital economy in Africa.