Technology sector players are calling for greater collaboration to overcome barriers to online trade.
This comes as artificial intelligence (AI) blockchain technology and faster digital payments emerge as key drivers of the next phase of e-commerce in East Africa.
The call was made during the East Africa Digital Commerce Summit in Nairobi, which brought together players in fintech, e-commerce, logistics and retail to discuss the future of the sector, including artificial intelligence, digital payments and cross-border trade.
Gilbert Rono, chief executive officer of Vibrant Digital Africa, said, bringing different players together was necessary to find solutions to challenges affecting digital commerce across the region.
“This event is very important for us because it brings all the players across fintechs, logistics, and agencies, so that we can find a way out of the challenges that we have in our region,” said Rono.
One of the major issues raised was the difficulty of conducting seamless cross-border payments, which industry players say can affect businesses seeking to expand beyond their domestic markets.
Rono said East Africa needed payment systems that could work more seamlessly across borders to support the growth of regional e-commerce.
Peter Mwangi, Kenya country manager for VALR, noted that stablecoins could help reduce some of the friction associated with cross-border transactions.
Stablecoins are digital assets designed to maintain a stable value by being pegged to assets such as the US dollar.
Mwangi said faster transactions could make it easier for businesses to trade across African markets and increase the volume of cross-border commerce.
However, Mwangi identified lack of knowledge about virtual assets as one of the challenges limiting adoption.
Meanwhile, artificial intelligence is being positioned as a tool for lowering the technical barriers that have prevented some businesses from entering e-commerce.
Ruhi Suttarwala, CEO Emmerce Limited urged businesses to incorporate digitization as
technology could widen access to e-commerce for women, young people and others who previously lacked the technical expertise required to operate online businesses.
AI is also being used to address challenges in digital advertising, where businesses often struggle to determine whether their marketing expenditure is producing results.
The summit’s discussions come as digital commerce continues to evolve beyond online retail, with payment systems, logistics, advertising technology and artificial intelligence becoming increasingly interconnected.
