E-Commerce in Africa: Divergent Impacts on Rural and Urban Economies

Jaelyn S. Liang, Rehaan S. Mundy and Shriya Jagwayan

Papers from arXiv.org

Abstract: E-commerce is rapidly transforming economies across Africa, offering immense opportunities for economic growth, market expansion, and digital inclusion. This study investigates the effects of e-commerce on select African regions. By utilizing readiness factors, including mobile money deployment, GDP per capita, internet penetration, and digital infrastructure, the preparedness of African countries for e-commerce adoption is quantified, highlighting significant disparities. Through case studies in urban and rural areas, including Lagos, Kano, Nairobi, and the Rift Valley, the study shows e-commerce's significant effects on small and medium-sized enterprises (SMEs), employment, and market efficiency. Urban centers demonstrated significant gains in productivity and profitability, whereas rural regions experienced slower growth due to limited internet access and infrastructural barriers. Despite these challenges, localized solutions such as mobile money systems and agricultural e-commerce platforms are bridging gaps. This study highlights the significant potential of e-commerce in Africa while emphasizing the need for targeted investments and strategies to address existing regional disparities.

Date: 2024-12
New Economics Papers: this item is included in nep-afr, nep-ent, nep-ict, nep-pay and nep-ure
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