E-Commerce in Egypt is expected to increase by 30% by the end of 2022, according to a report released by BOOST for Consultations.
In this regard, CEO of BOOST Sherif Makhlouf said the development of e-commerce in Egypt requires new legislation to stimulate the sector which reached $100bn in 2021.
The expected increase relies on several factors, including the ease of transactions via different platforms and the rapid development in this sector due to the ramifications of the coronavirus pandemic.
Makhlouf pointed out that e-commerce is the future version of trade and it will expand in conjunction with opening more markets around the world. The ready-made garments, food, and electronic devices are the most prominent sectors likely to boom this year.
E-commerce will be one of the prominent sectors in Egypt in the coming five years, Makhlouf underlined, citing the companies’ increasing sales during the pandemic because of the lockdown and the attractive features of e-commerce.
The growth of e-commerce in Egypt also requires continuous monitoring to integrate it into the official economy, and supporting its infrastructure and logistics, protecting the rights of both companies and consumers, and regulating e-shopping sites. It also needs increasing public awareness of the sector.
A unified commercial network would facilitate the registering of companies to ensure the safety and quality of goods, Makhlouf said.
He called for issuing the e-commerce law ASAP and the integration of the informal market, asserting the importance of developing the national strategy for e-commerce.
The CEO of BOOST also called for regulating financial transactions in e-commerce systems, encouraging banks to establish an advanced system that accepts such transactions, expanding e-payment and e-signature systems, and encouraging e-shopping platforms to offer more discounts to their customers.
Makhlouf revealed that 2022 would witness the entry of more global e-commerce platforms in the Egyptian market, especially in the field of food, along with pumping more investments in the existing platforms, mentioning the expansion of Amazon, Ikea, and Zara in Egypt over the past period.
Egypt is one of the most important countries attracting such kinds of investment due to its population growth and the consumption pattern of Egyptians, which gradually turned to online shopping because of the pandemic, he added.