Unpacking the e-commerce space in Rwanda

E-commerce in Rwanda and the region is experiencing a significant boom, opening doors to untapped markets while facing challenges along the way. In a recent interview with CNBC Africa, Mohammad Hammad, CEO of Catchyz, shed light on the current landscape of e-commerce in the country. The conversation delved into the growth of online platforms, the increasing number of online consumers, the evolution of payment processing systems, and the challenges faced by e-commerce businesses in Rwanda. Hammad highlighted the surge in internet users and smartphone usage, emphasizing the convenience and simplicity of online shopping. He predicted a continued growth trajectory for the sector in the coming years, with numerous e-commerce websites emerging in the market. One of the key drivers of this growth is the shift towards digitalization and the ease of accessing products and services from mobile devices. Hammad also mentioned the rise of delivery companies in Rwanda, which have streamlined the order fulfillment process for online shoppers. The online market is not only growing in Rwanda but also across East Africa, with major websites thriving and delivering quality services. Despite the progress, challenges remain in the e-commerce sector. One significant obstacle is the lack of trust among some consumers towards online platforms, stemming from previous negative experiences or skepticism about the digital shopping concept. Building consumer trust and providing exceptional service are crucial aspects of establishing credibility and loyalty in the e-commerce industry. Hammad emphasized the importance of having transparent policies for returns and addressing customer complaints promptly to ensure a positive shopping experience. Another challenge highlighted by Hammad is the relatively low number of smartphone users who engage in online shopping, indicating room for growth in the market. Additionally, there is a need to further digitalize the shopping experience in Rwanda and dispel misconceptions about online platforms. Competition in the e-commerce space is another factor to consider, with social networks like Facebook providing alternative avenues for buying and selling goods. Hammad emphasized the importance of offering unique services, high product quality, and excellent user experience to attract and retain customers. Looking ahead, Hammad touched upon the emerging trend of mobile applications in Rwanda. The increasing adoption of mobile apps, coupled with advancements in technology such as artificial intelligence, is shaping the future of e-commerce in the region. As mobile applications become more prevalent and sophisticated, businesses in Rwanda are expected to leverage AI technology to enhance user experience and stay competitive in the market. In conclusion, while e-commerce in Rwanda shows tremendous potential for growth, addressing consumer trust issues, expanding mobile app usage, and staying ahead of the competition are key focus areas for businesses in the digital market.