File Photo: Amazon employee stacking boxes.
The report attributed this prediction to a number of drivers, including the ease of online purchasing and selling as well as changes in Egyptian consumer behaviour due to the ramifications of the coronavirus.
The report also said that e-commerce in Egypt requires a monitoring system, integrating the activity into the formal economy, expanding and creating appropriate legislation, supporting its infrastructure and logistics, protecting the rights of companies and consumers, and regulating the work of e-shopping web sites.
CEO of Boost Sherif Makhlouf said that the development of e-commerce in Egypt, whose value reached $100 billion in 2021, needs passing attractive new laws.
“E-commerce is the future of trade activity and it is expected to expand in conjunction with opening more markets around the world. In this regard, ready-made garments, food, and electronic devices are the most prominent sectors likely to achieve a boom by the end of 2022,” Makhlouf explained.
Makhlouf added that e-commerce is predicted to be among the most prominent sectors in Egypt in the coming five years, citing increased sales during the pandemic because of lockdown procedures.
“The expected increase in e-commerce activity in Egypt needs raising the awareness of the public about the need for oversight and setting up a commercial electronic network to facilitate the task of registering companies in order to guarantee the safety of goods delivered from companies to clients,” Makhlouf said, adding that a national strategy for e-commerce should be developed.
Makhlouf also asserted the importance of integrating e-commerce into the current legal and tax regulations.
He also said that banks need to establish an advanced banking system that accepts electronic commercial transactions, adopt electronic payment systems and e-signature system, add an e-stamp service, and encourage e-shopping platforms to offer more discounts to their customers.
Makhlouf said he expects that more global e-commerce platforms will enter the Egyptian market in 2022, especially those selling food products, and that more investments will be pumped into existing platforms, citing the entry of Amazon, Ikea, and Zara into the online market over the past few years.
“Egypt is one of the most important countries for attracting this kind of investment due to its population growth and Egyptians’ consumption pattern, which has begun to turn to online because of the coronavirus,” he expounded.