ECommerce as an enabler must be embraced by business entities to aid Zambia’s “V“ shaped recovery. Speaking at the eCommerce Expo and Conference for 2020, Economics Association of Zambia National Secretary Mutisunge Zulu said eCommerce should be exploited by businesses to aid recovery from effects of COVID19.
In the first panel discussion, Zulu placed greater importance on two factors of production as part of the Cobb Douglass econometrics productivity function namely labor and technology in this disease pandemic period. Without a healthy labour force, COVID has shown us that there would be no businesses let alone technology, an under played factor of production, which covers eCommerce has now more than ever become a key enabler in supporting operational resilience of businesses, he said.
Businesses need visibility through owning websites, therein lies the eCommerce opportunity
“There has been increased innovation in the local eCommerce space as entities such as Afridelivery have tapped the curve to partner with firms such as Lafarge Plc to deliver cement to clients door steps,” The EAZ National Secretary said. Zulu however bemoaned the volume of imports through eCommerce which are potentially adding pressure on the exchange rate but further countered this view with the existing structural posture of the country where production of competitive products such as phones and fabric is non existent making international products preferable.
Ecommerce is still received with inertia by many players that prefer transacting cash which raises a confluence of concerns ranging from tax evasion to lack of trust in the platform value chain which needs assurance by service providers to earn confidence of local users,” Zulu said.
E-COMMERCE COULD GROW BUSINESSES OUT OF RECESSION
Zambia’s private sector has borne the brunt of disease pandemic with some resorting to trim wages while others have outright laid off staff. There is more realization that embracing eCommerce allows for small businesses to increase their contribution to costs thereby allowing for sustainable survival post COVID. Financial institutions are gearing to tap into fully fledged platform banking through understanding ecosystems. Zambia is expected to grow out of the forecast recession of -4.2% by slightly under two percent in 2021. Business will need more than just an enabling environment but innovation to recover in ‘V’ shape, an avenue eCommerce can help drive.
The Kwacha Arbitrageur