E-Commerce in Egypt

E-commerce is booming in Egypt thanks to the immense support of the Egyptian government. This support has resulted in a strong growth in the number of online shoppers and improved infrastructure. 

 

The COVID-19 pandemic has also had a positive impact on e-commerce growth in Egypt. Card payments are becoming increasingly popular, with 41.36 million people purchasing consumer goods via the internet each year. This trend is set to continue, with e-commerce projected to grow at a CAGR of 19.43% by 2027.

E-commerce in Egypt: current state and future prospects

E-commerce is currently one of the most booming industries in Egypt. This is due to a number of reasons, including the increasing number of online shoppers and improved infrastructure.

 Mohamed Younes, the CEO of Khazenly, spoke to TechCabal about the future of e-commerce and logistics in Egypt and his company's new recent regulations and laws. He said that "I view future years as the dawn of a new era for Egypt's digital economy, with even more growth and opportunities". This is certainly an exciting prospect for the future of e-commerce in Egypt.

The current state of e-commerce in Egypt is very strong, with a projected growth rate of 19.43% by 2025. This presents a huge opportunity for businesses to tap into this growing market. However, there are still some cultural barriers that need to be overcome in order for e-commerce to truly flourish in Egypt. Nevertheless, the potential for growth is enormous and it will be interesting to see

The role of e-commerce in the Egyptian economy

E-commerce plays a fundamental role in Egypt's economy, representing E£15.6 billion or 1.1% of the country's GDP. The government has worked with UNCTAD to boost e-commerce in the Arab-speaking world's most populous market, where most businesses are still offline.

 Egypt's young, urban and tech-savvy population and well-connected middle class, combined with rising internet and mobile penetration rates, are driving the growth of the e-commerce sector. This strategy supports the development of the sector and its contributions to economic growth through initiatives that encourage, among other things, the use of digital marketing tools and the adoption of modern payment methods.

The potential for e-commerce in Egypt

E-commerce has the potential to become the leading pillar of Egypt's ecosystem. It is growing rapidly and is expected to increase by 30% by the end of 2022. The Egyptian government has worked with UNCTAD to boost e-commerce in the Arab-speaking world's most populous market.

 While Souq and Jumia remain the biggest e-commerce portals in Egypt, the two competitors have not monopolized the market. E-commerce transactions in the Egyptian market are expected to reach EGP 100 billion by the end of 2021. The e-commerce market is growing rapidly not only in Egypt but all over the world, as more and more people are doing online shopping.

The challenges facing e-commerce in Egypt

E-commerce is growing in popularity in Egypt, but there are still many challenges that need to be addressed in order for it to reach its full potential. One of the biggest problems is the lack of reliable telecommunications and Internet infrastructure. 

This makes it difficult for businesses to connect with potential customers and process orders efficiently. There are also issues with logistics and trade facilitation, as well as the legal and regulatory environment. These challenges need to be addressed in order for e-commerce to reach its full potential in Egypt.

The legal and regulatory framework for e-commerce in Egypt

E-commerce is growing rapidly in Egypt, but the legal and regulatory framework is not yet fully developed. The Egyptian government has taken some steps to support e-commerce, such as establishing the Information Technology Industry Development Agency (ITIDA) and passing the Electronic Signature Law. 

However, more needs to be done to bolster the legal and regulatory framework for e-commerce. This will build trust in online payments and help ensure that consumer interests are protected. In addition, the government should strengthen training and apprenticeships in areas like e-commerce so that more people can take advantage of this growing sector.