E-commerce has been growing rapidly in Uganda in recent years, especially with the spread of the novel coronavirus.
According to the Uganda National E-Commerce Strategy report under the Ministry of ICT, e-commerce is expected to grow at an annual rate of 17.1% from 2020 to 2025.
This growth is due to increased user penetration of e-commerce, which is expected to reach 29.1% by 2025.
“Uganda's e-commerce revenue is expected to reach $220 million in 2021, with an expected annual growth rate of 17.6 percent, resulting in a market value of $421 million, with The penetration rate is expected to reach 29.1 percent by 2025,” the report said. Partially read.
According to data from Statista, the market is expected to grow by more than 15 million users by 2025.
Furthermore, the transaction value of the digital commerce market is expected to reach USD 930 million in 2024, with an annual growth rate (CAGR 2024-2028) of 8.10%, and the total transaction value will reach USD 1.27 billion by 2028. is predicted to reach.
The number of digital market users is expected to reach 2.39 million by 2028.
The average transaction value per user in the digital commerce market is expected to reach USD 59,000 in 2024.
A global comparison perspective shows that the highest transaction value reached the United States (US$ 2,255 billion in 2024).
Mr. Lawrence Sekandi, Country Sales Director of Avanista Uganda, believes that Ugandan consumers deserve access to quality products.
He said that since its inception, there has been a significant increase in the adoption of e-commerce due to increased internet penetration and changing consumer preferences towards online shopping.
“Our success stems from our customer-centric approach, innovative marketing strategies and partnerships with local suppliers,” he said.
He further added, “We have localized our services by offering a diverse range of products tailored to Ugandan tastes.”
Sekandi said they are providing personalized assistance through audio guides and customer service channels to ensure even illiterate people are accepted.
However, it's not all rose beds. Challenges in running such a business include infrastructure limitations, reliability of payment systems, and access to the internet.
