Can e-commerce facilitate the growth of small and medium-sized enterprises in Africa?

Abstract

According to the United Nations Conference on Trade and Development (UNCTAD), SMEs account for 60 to 70 per cent of all employment in developing countries, and hence contribute to poverty reduction. There are several explanations for the slow diffusion of e-commerce in developing countries, in general, and in Africa, in particular. These barriers can grouped into three categories: socio-political, including legal and human preference; cognitive, including literacy, content and language; and economic barriers, such as access and use of ICTs. This policy brief aims to highlight some of the policy considerations regarding the role of e-commerce in the growth of SMEs in Africa. It was initiated to correspond to the recent support extended by the Commission to member States in the area of e-commerce facilitation for the growth of SMEs.