Although the number of Ugandans who own smartphones has increased, Jumia reports that the country is still lagging behind when it comes to the adoption of e-commerce as compared to other EAC partner states.
While addressing the media in Kampala Jumia Uganda Chief Executive Officer Ron Kawamara attributed the low adoption rate to some government policies that make access to the internet very expensive.
“ The average Ugandan Consumer is increasingly getting connected with 42% of the population in Uganda now connected to the internet but the largest population are not willing to adjust to e-commerce.
“Very few Ugandans have embraced digital markets yet it’s the way to go if the cost of doing business in the country is to go down,” said Kawamara.
In the Jumia report, it alleges that adopting E-commerce creates jobs in all value chains and also plays a big role in technology transfer.
The report also indicates that mobile phone subscription and penetration is at approximately 80% with 25million Ugandans now owning a mobile device.
To ensure that more Ugandans have access to smartphones, Kawamara said Jumia will be hosting the Jumia Mobile Week to enable the general public purchase smartphones and accessories at discounted prices.
Some of the factors that have kept many Ugandan not to adapt to digital markets include expensive internet due to government policies of the introduction of taxes especially on the usage of social media like Facebook, Twitter and Whatsapp.
“Our biggest clients are the youth and when government Introduced taxes on social media it greatly affected the players in E.markets.
“Very few youths are willing to pay for such taxes yet it’s those platforms where the clients can make orders,” explained Paul Tesar the Head of Growth at Jumia Uganda.
BY SAMUEL NABWIISO