UAE B2B e-commerce site Dubuy targets Africa’s growth – TechCrunch
Dubuy, an e-commerce platform from UAE global logistics provider DP World, has entered Kenya with the intention of launching the business-to-business (B2B) site in more countries on the continent in the coming months. This is Dubuy’s third market in East Africa, a few months after its establishment in Rwanda and the unveiling of its intention to enter Ethiopia.
The Dubai government-owned wholesale e-commerce platform was launched earlier this year to help businesses buy and sell goods. Purchased goods are processed through the supply chain of DP World and its logistics partners.
The e-commerce site is expected to take advantage of DP World’s ports (currently eight, with three more under development) and the logistics network in Africa to enter new markets on the continent. DP World’s hubs in Africa are spread across Rwanda, Namibia, Mozambique, South Africa, Senegal, Egypt, Algeria, Nigeria, Djibouti and Somaliland, which means they will likely enlighten its regional expansion plans. Dubuy plans to cover all of Africa by 2025.
“With the African Continental Free Trade Area (AfCFTA) now in effect, the eyes of the world will be on the continent,” said Mahmood Al Bastaki, CEO of Dubai Trade World and DP World.
“African businesses are increasingly using digital channels and technologies to engage with suppliers and distributors to create agile supply chains, and digital platforms like Dubuy.com will be key to this change. Our technology enables local businesses to transform into international businesses by giving them access to new markets in Africa, the Middle East and the rest of the world, ”he said.
The site has 4,000 active merchants and has so far received 500,000 visits from sellers and buyers in Africa, they said. Automotive supplies and kitchen appliances are the most in demand. Due to the close collaboration with governments, traders using Dubuy would benefit from greatly reduced shipping rates, and in Kenya the platform has an agreement with the National Bank of Kenya for trade finance.
Online marketplaces have increasingly become important growth avenues for small and medium-sized businesses in Africa, but the continent accounts for a small share of global e-commerce due to a number of factors, including connection Internet and the cost of data.
Currently, only around 25% of Africa’s 1.2 billion people are e-commerce users, but this figure is expected to rise steadily as the cost of internet and connectivity drops increases. . About 28% of the population of sub-Saharan Africa is connected to the mobile internet, but that figure is expected to rise to around 40% by 2025, according to the 2021 GSMA report on the mobile economy.
Kenya is ranked among the top 100 fastest growing e-commerce economies in the world, according to the 2020 UNCTAD B2C Trade Index. About 72.9% of the population uses a mobile money account, while 26.1% are active online shoppers and pay their bills online, making the country ripe for e-commerce.
Across Africa, Jumia is currently the largest e-commerce platform, leading hundreds of other B2C sites including Chinese-owned Kilimall, Marketplace Africa in Nigeria and Bidorbuy in South Africa.