E-commerce strategy key to small business growth in East Africa

By FRIDA INCHOGA

Kenya earlier this month achieved a major milestone with the launch of the National E-commerce Strategy, which is poised to reshape the nation's economy. This strategy offers numerous opportunities for micro, small and medium-sized enterprises (MSMEs), digital entrepreneurs and players in the first, middle, and last-mile service delivery.

As we approach 2024, MSMEs and entrepreneurs are encouraged to broaden their vision beyond local boundaries. The broader EAC and continental markets, with a population of 283.1 million, offer an expansive terrain for trade and commerce. The strategy is a gateway, enabling businesses to seamlessly navigate and tap into vast opportunities.

In this new era, the digital realm takes centre stage as a powerful platform propelling Kenyan-made products into visibility not only within the EAC region but across the entire continent.

The advent of the National E-commerce Strategy intensifies this potential, prompting MSMEs and entrepreneurs to examine programmes and opportunities that can elevate their operations.

Entrepreneurs are invited to engage in collaborations, tailoring products for a broader market. Such cooperative efforts promise higher quality, refined and standardised products that meet the expectations of a broader consumer base. The digital space facilitates these collaborations, breaking down geographical barriers and fostering innovation.

Moreover, investors are encouraged to capitalise on the EAC Common External Tariff (CET), stimulating local manufacturing, assembling and value addition. The CET, with its diverse bands, offers opportunities for strategic positioning in the expansive EAC market, encouraging local production and advantageous positioning in the regional market.

Leveraging the duty-free import threshold of $20 (equivalent to slightly over Sh3,000) within the EAC region opens doors for increased sales of small parcels and commodities across borders, facilitating cross-border trade and encouraging businesses to explore new markets.

SMEs should consider the usefulness of their local postal node (post office). These offices are designed to be trade facilitators and offer vast origin-destination linkages that are useful for movement of items and tracking delivery across the EAC.

This is by virtue of their greater Universal Postal Union linkages globally, digitisation capabilities and recognition as cross-border facilitators for parcels and e-payments.

In this rapidly evolving landscape, investors are urged to explore disruptive approaches in e-commerce, aligning with ever-changing consumer behaviours. Imagine a scenario where clients identify products, engage with merchants, make payments and confirm deliveries directly within social media or chat platforms. This not only enhances the customer experience but also opens up new avenues for employment, creating a ripple effect in various value chains.

As the MSME sector prepares for the challenges and opportunities of 2024, the E-commerce Strategy lays down a sturdy foundation for growth. The call to businesses is to think expansively, reaching beyond local boundaries to embrace the immense opportunities that the EAC market holds.

This launch signifies a pivotal moment for Kenya's economic landscape, promising a brighter and more prosperous future for MSMEs and entrepreneurs.

The National Ecommerce strategy makes provisions for increasing relevant digital skills, unifying, or advancing policies that will advance the E-commerce landscape, and catalyzing market entry and participation for all citizens within safe and secure ecosystems.

This has the potential to reshape how businesses operate, collaborate, and thrive in the digital age, unlocking a new era of growth and prosperity for East Africa.