Africa's E-Commerce Giant Jumia Sets Sights on Egypt
Post by Sameena Farooq | Dec 19, 2018
Hesham Safwat (Jumia Egypt’s Chief Executive Officer) says he is requesting the government to normalize informal retailers by providing them tax incentives and cheap loans that would help to market goods online.
CAIRO, Egypt - Jumia, Africa’s leading online shopping platform, wants to enter and become one of the biggest markets in Egypt too and is planning to turn to its country’s help fora vast network of unlicensed vendors.
Jumia wants a grown of about 10-fold on its revenue from Egypt for which it is often advertising Africa’s answer to online retail giant Amazon. It further aims to grow its number of products by six-fold and range about 12 million by 2021. To help this achieve, Jumia Egypt’s Chief Executive Officer Hesham Safwat is helping it nconventionally and urging the government and their authorities to regulate the retailers by offering them tax incentives and cheap loans that will help them to market their goods online.
Safwat said in an interview at his office in Cairo. “I take this as one of my biggest challenges,” He further added, “Imagine that if just 50 percent of this informal market becomes formal, we would be able to add them to our platform, and new products categories will come forward to online shoppers.”
Egypt’s 96 million numbers of consumers are now finding out online shopping as a big source to get their traditional cash-driven retail outlets. Just 5 to 8 percent of Egyptian internet users have used the internet for making purchase mostly in cash, says Safwat.
The unauthorized economy records about 37 per cent of Egypt’s total domestic output, and informal retailers don’t just pay taxes but they also face quality controls for selling in Jumia.
The sales of Jumia in Egypt have increased tremendously, about 190 per cent growth in 2017 from the previous. Many consumers even looked for cheaper products and retailers opted Jumia to sell in big numbers and to a wider audience.
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