More than half of all enterprises enlisted on e-business platform Jumia in Kenya are owned by female founders, a new report shows, pointing to the pivotal role of e-commerce in boosting their participation in business.
A latest digital economy report published by the United Nations Conference on Trade and Development (UNCTAD) notes that emerging online platforms are providing new ways of overcoming traditional gender barriers to trade such as inaccess to finance, costs associated with distance and entry into male-dominated sectors and distribution networks.
“Nevertheless, opportunities for development gains from e-commerce must be viewed against a backdrop of highly uneven levels of digital readiness,” writes UNCTAD.
“Future trajectories and the ability of developing countries and LDCs to unlock the potential of e-commerce for all depends on policy actions that address the root causes of the digital divide.”
Further, the UNCTAD notes that it is partnering with governments around the world as well as members of the ‘e-Trade for all’ initiative to foster enabling environments to better harness e-commerce for development and assist businesses of all sizes to tap into national and international markets and supply chains, reduce trade costs and drive efficiency through competition.
An earlier report by the International Finance Corporation (IFC) had indicated that closing gender gaps in the sector could add nearly $15 billion (Sh1.9 trillion) to the value of Africa’s e-commerce industry between 2025 and 2030 in what it said would essentially be putting billions in the hands of women entrepreneurs.
The IFC report singled out peculiar challenges that women seeking to venture into e-commerce have to grapple with, noting that, for instance, during the Covid-19 pandemic, sales by female-owned enterprises fell by 39 percent at a time when those of men-owned businesses rose by 28 percent.
“E-commerce firms can reverse this trend by targeting women-owned businesses for training, increasing women’s participation in high-value segments such as electronics, and encouraging better uptake of emerging fintech offerings, which women currently use at a much lower rate than men,” notes IFC.
