Over half of all enterprises listed on Jumia, Kenya’s leading e-commerce platform, are owned by female founders puts into light the key role of e-commerce in empowering women entrepreneurs. Online platforms, says a recent digital economy report by the United Nations Conference on Trade and Development, continue to break down barriers that have long inhibited women’s participation in trade-a lack of access to finance, high costs of entry, and male-dominated distribution networks.
While these advances are important, UNCTAD warns that e-commerce dividends must be viewed in the context of asymmetric digital readiness. The report highlights that future e-commerce prospects, particularly for developing countries and LDCs, depend on appropriate policy interventions that address the digital gap.
In this regard, UNCTAD was working with governments all over the world, as well as through the “e-Trade for all” initiative, to develop conducive environments where firms of all sizes could have access to national and international markets, cut their trade costs, and enhance efficiency by competition.
In an earlier report, the International Finance Corporation outlined the economic opportunity of bridging gender gaps in e-commerce, estimating that near $15 billion could be added to Africa’s e-commerce industry between 2025 and 2030 by doing so. However, it also cited challenges faced by women in the sector, as female-owned enterprises reported a decline of 39 percent in sales during the Covid-19 pandemic, while male-owned ones witnessed an increase of 28 percent.
Some of the inequalities against which the IFC recommends that e-commerce companies direct their training include targeting women-owned enterprises, better participation of women in high-value sectors such as electronics, and using emerging fintech solutions, which, for the time being, women use less than men.