Amazon has big plans for Egypt
Amazon, the US retail giant with market value that surpasses $1.5 trillion has big plans of expanding in Egypt.
The company owns the online retailer Souq.com, which is operational in Egypt, and showed the potential of the country that not only covers its 100 million citizens, but due to its location also services more than 2 billion consumers around the world.
Amazon’s plans include investing in digital payment services, transport services and artificial intelligence. It also aims to help both state owned business and small and medium enterprises by helping them display and sell their products on the website.
The Egyptian government has been trying to promote the e-commerce sector that currently represents 1% of the country’s commerce; the government plans to push this percentage to reach 4% in the next 5 years.
The lockdown due to COVID-19 pandemic helped Egypt see the potential of e-commerce as it saw an increase of about 80% during the lockdown period, compared 20% average increase every year.
However, attracting investments in this field doesn’t come without obstacles; people in Egypt are just starting to gain trust in e-commerce and online payments, and even though 53 million people have access to online payment methods, 85% of e-consumers still prefer cash on delivery.
Also the sector suffers a lack of regulation and laws by the government and the delivery part is tricky in Egypt where addressed are not clear.