Experts discuss empowering MSMEs with digital tools, e-commerce

The steady rise in and growth of mobile money presents an opportunity for African micro and small enterprises (MSMEs) to expand their businesses. ALSO READ: Why Rwandan SMEs should harness the power of e-Commerce, digital communication During a side event of Mobile World Congress (MWC) Kigali titled “Realising the Potential of Mobile for the Digitalisation of Micro and Small Entrepreneurs in Africa,” experts emphasized that entrepreneurs can enhance their profitability and build greater resilience through the strategic use of digital tools and e-commerce. Additionally, various challenges hindering their progress in this regard were highlighted. A recent report by Africa 118, a continental digital marketing firm, and Global System for Mobile Communications (GSMA), shows that less than 10 per cent of African MSMEs have an online presence. According to Ezana Raswork, the Founder and Managing Director of the firm, the issue stems from a lack of awareness, knowledge, and the perceived cost barrier. To tackle the problem, he said the company collaborated with the GSMA Innovation Fund to create a solution known as the Digital Presence Pack. The product offers a user-friendly digital presence on Google's platform, designed to provide an easy entry point for MSMEs into the digital space. ALSO READ: 2,500 Rwandan SMEs to benefit from skills development initiative Africa 118 research also reveals two distinct categories among MSMEs: the active ones who want to engage online and the passive ones who prefer a minimal online presence. Raswork suggested meeting MSMEs where they are and helping them grow their digital skills as a critical component in driving the progress forward. ALSO READ: COMESA seeks to harmonise digital payment for MSMEs Ruth Badoo, the Senior Manager of API partnerships at MTN Ghana, highlighted several key points, including the impact of the Covid-19 pandemic on consumer behaviour and the specific challenges faced by women and micro-entrepreneurs in Ghana's e-commerce ecosystem. What you realise is that most people were interested in dealing with merchants or goods in a physical form...Covid-19 kind of accelerated a lot of people's acceptance towards electronic channels of buying and selling, she said. Addressing the gender gap in mobile money uptake, Badoo highlighted the multifaceted role of women in managing domestic responsibilities and small businesses and emphasised the importance of devising strategies to bridge the gap between women and men in e-commerce. Badoo also discussed the unique challenges faced in the Ghanaian market, such as issues related to education, technology, illiteracy, language barriers, and the fear of fraud. “Women often express more fear of fraud than men due to their trusting nature, making them more susceptible to potential scams,” she said. Dip Patel, the Commercial Chief of Staff at Wasoko, an African e-commerce platform, provided insights into the challenges faced by small shop owners across East Africa when it comes to growing online presence and advocated for tailored solutions to meet their specific needs. To make delivery and logistics more enabling for e-commerce in their markets, Patel suggested addressing challenges and creating tightly clustered service areas. He also recommended bundling high-margin, small items with less profitable ones for cost-effective deliveries, adding that diversifying payment options and reducing the risks and transaction costs associated with cash and mobile money transactions are further steps toward improving the delivery process.

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Experts discuss empowering MSMEs with digital tools, e-commerce