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E-Commerce in Africa: Divergent Impacts on Rural and Urban Economies

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  • Jaelyn S. Liang
  • Rehaan S. Mundy
  • Shriya Jagwayan

Abstract

E-commerce is rapidly transforming economies across Africa, offering immense opportunities for economic growth, market expansion, and digital inclusion. This study investigates the effects of e-commerce on select African regions. By utilizing readiness factors, including mobile money deployment, GDP per capita, internet penetration, and digital infrastructure, the preparedness of African countries for e-commerce adoption is quantified, highlighting significant disparities. Through case studies in urban and rural areas, including Lagos, Kano, Nairobi, and the Rift Valley, the study shows e-commerce's significant effects on small and medium-sized enterprises (SMEs), employment, and market efficiency. Urban centers demonstrated significant gains in productivity and profitability, whereas rural regions experienced slower growth due to limited internet access and infrastructural barriers. Despite these challenges, localized solutions such as mobile money systems and agricultural e-commerce platforms are bridging gaps. This study highlights the significant potential of e-commerce in Africa while emphasizing the need for targeted investments and strategies to address existing regional disparities.

Suggested Citation

  • Jaelyn S. Liang & Rehaan S. Mundy & Shriya Jagwayan, 2024. "E-Commerce in Africa: Divergent Impacts on Rural and Urban Economies," Papers 2412.03879, arXiv.org.
    • Handle: RePEc:arx:papers:2412.03879
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    References listed on IDEAS

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    1. Alan A. Ahi & Noemi Sinkovics & Rudolf R. Sinkovics, 2023. "E-commerce Policy and the Global Economy: A Path to More Inclusive Development?," Management International Review, Springer, vol. 63(1), pages 27-56, February.
    2. Damilola Kuteyi & Herwig Winkler, 2022. "Logistics Challenges in Sub-Saharan Africa and Opportunities for Digitalization," Sustainability, MDPI, vol. 14(4), pages 1-18, February.
    3. Jake Kendall & Bill Maurer & Phillip Machoka & Clara Veniard, 2011. "An Emerging Platform: From Money Transfer System to Mobile Money Ecosystem," Innovations: Technology, Governance, Globalization, MIT Press, vol. 6(4), pages 49-64, October.
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