By Chimwemwe Misomali:
E-commerce Data Analytics, Rankings & Insights (ECDB) – a data hub for comprehensive e-commerce analysis – has predicted a compound annual growth rate of 17.2 percent in e-commerce revenue for Malawi in 2024.
The trend is further expected to culminate in a projected market volume of $46.8 million by 2028.
Information available on www.ecommercedb.com indicates that an expected increase of 22.7 percent in 2024 will contribute to the worldwide growth rate of 10.1 percent for the year.
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“There are seven markets considered by ECDB within the Malawian e-commerce market. Electronics is the largest market and accounts for 24.8 percent of the Malawi e-commerce revenue.
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“It is followed by hobby and leisure with 20.8 percent, fashion with 19.8 percent, furniture and homeware with 11.6 percent, care products with 8.1 percent, grocery with 7.6 percent and vehicle parts and construction supplies with 7.2 percent,” information on the website reads.
An earlier report by the International Trade Administration states that e-commerce has the potential to bring Malawi closer to achieving Sustainable Development Goals, but the sector needs additional structure, regulations and enforcement.
“E-commerce options are not widely available in Malawi, but there have been significant improvements in recent years. Almost 85 percent of connected Malawians access the internet on their mobile devices.
“There are over 10.1 million registered mobile money subscribers, with over 60 percent of subscribers using the services routinely,” the report reads.
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In an interview, president of the ICT Association of Malawi, Clarence Gama, said the growth in the e-commerce environment is stemming from new e-money players entering the market.
“New online payment companies are emerging and many people believe online payments are the way forward.
“We could advance at a faster rate, but the problem is that most of the population lives in rural areas and lacks access to the necessary devices,” Gama said.
During the Dynamic Leaders and Gatekeepers Forum 2024, Malawi Communications Regulatory Authority Director General, Daudi Suleman, said Malawi is making strides in leveraging digital technologies and the internet to enhance public service delivery, promote economic development and improve the quality of life for its citizens.
He pointed out that currently, internet penetration in Malawi stands at 34 percent, with 14 million Sim cards issued, one million smartphones in use and 16 percent of the population having access to energy.
Daud was, however, quick to mention that there is still low digital literacy, high costs of smart devices, an undefined digital economy and poor cyber laws.
Meanwhile, on the regional front, expectations are high that trading will be enhanced among member states of the Common Market for Eastern and Southern Africa (Comesa) following a project to link central banks and all financial institutions in the region to allow seamless trading using local currencies.
Comes a Business Council Chief Operating Officer responsible for the Digital Financial Inclusion programme, Jonathan Pinifolo, said the project was expected to commence in July, with the platform going live on 17 November 2024.
“We want to integrate all financial institutions, mobile network operators and other fintechs into one platform.
“When it comes to trade, we want people to be able to send money from one country to another without challenges,” Pinifolo said.
Malawi, Kenya, Uganda, Rwanda, Mauritius, Egypt, Ethiopia and Zambia will be the first to trial the innovation.
$3 million has already been spent on the programme; however, another $10 million is required to complete the project.
