The DP world launches e-commerce platform named Dubuy. The company intends to expand the site’s business-to-business (B2B) reach by hurling it in more countries throughout Africa in the coming months. This is Dubuy’s third market in East Africa, after establishing a presence in Rwanda and the announcement of ambitions to expand into Ethiopia in recent months.
The wholesale ecommerce platform, which the Dubai government controls, was created earlier this year to assist companies in purchasing and selling commodities. The supply chain of DP World e-commerce and its logistics partners is responsible for the fulfilment of purchased items.
Also Read: Get free ecommerce training online (absolutely free)
The eCommerce site intends to make use of DP World’s ports (of which there are presently eight, with three more under construction) and logistics network in Africa to expand into new markets on the continent. Rwanda, Namibia, Mozambique, South Africa, Senegal, Egypt, Algeria, Nigeria (Djibouti), and Somaliland are among the countries with DP World hubs in Africa and the company’s regional development ambitions are expected to be informed by these hubs. By 2025, Dubuy intends to have a presence in every country in Africa.
“With the implementation of the African Continental Free Trade Area (AfCFTA), the world’s attention will be focused on the region,” said Mahmood Al Bastaki, CEO of Dubai Trade World and DP World.
African firms are increasingly relying on digital channels and technology to interface with suppliers and distributors to construct agile supply chains, and digital platforms such as Dubuy.com will be critical in facilitating this transition.
Also Read: How Voice Search Will Take Lead: Start Optimizing Your Ecommerce Store Content Now
By offering access to new markets and free e-commerce training in Africa, the Middle East, and the rest of the globe, the technology enables local firms to develop into multinational corporations.
According to the site’s administrators, it now has 4,000 active merchants and has had 500,000 visits from vendors and consumers across Africa. The most in-demand items are automotive supplies and kitchen equipment.
Due to the platform’s tight collaboration with governments, merchants who use Dubuy are believed to profit from significantly reduced shipping rates. In Kenya, the platform has a trade financing agreement with the National Bank of Kenya.
In recent years, online marketplaces have emerged as crucial development channels for small and medium-sized enterprises in Africa. Despite this, the continent only accounts for a tiny percentage of global e-commerce due to various variables, including the cost of internet access and data transmission.
Currently, only approximately 25 percent of Africa’s 1.2 billion people utilise e-commerce. Still, this number is expected to rise rapidly as the cost of internet access decreases and connection becomes more widespread. A total of 28 per cent of the population in Sub-Saharan Africa is already linked to mobile internet, with this figure predicted to rise by 2025 to almost 40 per cent, according to the GSMA mobile economy report for 2021.
Jumia is presently the largest e-commerce platform in Africa, outpacing hundreds of rival B2C sites and providing free e-commerce courses, including Chinese-owned Kilimall, Nigeria’s Marketplace Africa, and South Africa’s bidorbuy. Jumia also has a strong presence in the Middle East and Asia.
Recommended Reads: