While e-commerce presents significant opportunities for growth in Uganda, addressing infrastructure and connectivity challenges will be essential to fully realize its potential and ensure inclusive access to high-quality products for all consumers.
E-commerce trade in Uganda has experienced significant growth in recent years, particularly during the COVID-19 pandemic. According to a report by the Uganda National E-commerce Strategy, the sector is projected to grow at a rate of 17.1 percent annually between 2020 and 2025. This growth is fueled by an increase in e-commerce user penetration, which is expected to reach 29.1 percent by 2025.
The market size for e-commerce in Uganda is expected to reach $220 million in 2021, with an estimated annual growth rate of 17.6 percent. By 2025, the projected market value is $421 million. Additionally, data from Statista indicates that the number of e-commerce users in Uganda is set to grow by over 15 million by 2025.
Despite the promising growth prospects, challenges persist in the e-commerce sector. Infrastructure limitations, unreliable payment systems, and limited internet accessibility are among the key challenges faced by e-commerce businesses in Uganda. However, companies like Abanista Uganda are addressing these challenges through innovative strategies such as offering audio guides and personalized customer assistance to cater to a wide range of consumers, including the illiterate population.
Lawrence Ssekandi, the Country Head of Sales at Abanista Uganda, emphasized the importance of customer-centric approaches and partnerships with local suppliers in driving e-commerce growth in Uganda. He highlighted the company’s success in catering to Ugandan preferences by offering a diverse product range and localized services.
