E-commerce, with its potential to transcend geographical barriers and empower businesses, is facing a challenging path in Ghana.
While it offers immense promise for market expansion and job creation, the sector grapples with significant hurdles that have recently led to the departures of notable players.
The rise of e-commerce in Ghana presents an opportunity for businesses to tap into global markets and broaden their customer reach.
The convenience of shopping anytime, anywhere enhances customer satisfaction and accessibility, while the growth of e-commerce creates employment opportunities in areas like logistics, digital marketing, and customer service.
However, the sector faces several challenges that threaten its growth and sustainability.
Efficient product delivery, particularly in remote areas, remains a significant hurdle. Online fraud, counterfeit products, and data privacy concerns can erode consumer trust, while disparities in internet access between urban and rural areas hinder the equitable adoption of e-commerce across Ghana.
Additionally, the lack of secure and widely accepted online payment systems complicates e-commerce transactions.
Recent exits of key players, such as Glovo and Jumia’s withdrawal from food delivery operations, highlight the mounting challenges faced by online businesses in Ghana.
The closure of Google Trader in previous years further emphasizes the persistent hurdles encountered by tech ventures in the country.
Technology analyst Maximus Amertogoh suggests that the reasons behind these exits may not solely be economic, as cultural factors and operational issues might also be contributing factors.
“And that one could not just be economics, it may be cultural stuff that’s not favouring them and their model. The cost of operations may be higher because if you have a lot of competitors in the state and you have people that are signing up for your service and they are not delivering on time, customers will tell others and rather turn to other services.”
Meanwhile, a business coach Dr. Andrews Ayiku proposes potential solutions to foster the growth of e-commerce in Ghana, including partnerships with telecommunication companies for stable connectivity, streamlining operations, reducing costs, and offering better deals to customers.
“So, the first thing they should have done or the first thing they can do is those in the country should think about how do I work with the telcos to ensure I have a stable connectivity for the kind of operations I do?
“So, they should have some partnership with them, yet a clear understanding of connectivity that they need so theirs will be consistent and reliable. Secondly, they need to streamline their operations, reduce cost and offer better deals to customers.”