Cosmetics stand out as the most purchased products online in Kigali.

According to statistics, 24 per cent of Kigali residents bought cosmetics online five times in the last six months closely followed by groceries and clothes.

Electronics are the least purchased goods online, with up to 33 per cent of buyers saying they are likely to shop online in the next 12 months, according to a consumer survey done by the International Trade Council (ITC).

Statistics show that 39 per cent of people in Kigali purchased cosmetics between two and three times in six months while 5 per cent purchased them between six and 10 times.

The survey also indicates that 45 per cent purchased groceries two to three times while 8 per cent bought the products more than 10 times, with 29 per cent having at least bought groceries once in six months.

Although the trend is picking up by the day driven by a growing technology savvy millennial segment of the population, the increasing proliferation of smart phones and other devices and government policy on promotion of technology innovations, e-commerce still face obstacles of cost and lack of trust especially for local platforms.

“As far as e-commerce is concerned, Rwanda is moving in the right direction.

We have a policy in place, but there still issues to address — cost is one of them, consumers cite high prices as an issue, purchasing power is also a critical issue,” said Leonard Mungarulire, the National coordinator of e-commerce project sector and enterprise competitiveness at ITC.

He said for e-commerce to grow, there is a need for more middle class with a stable purchasing power adding that the sector needs to eliminate risks.

“Transaction costs for e-commerce payment platforms are still prohibitive, taking 10 per cent of what the merchant gets is high, its like you are a shareholder,” said Olivier Manzi, an e-commerce expert.

The country has achieved significant in the promotion of e-commerce and the use of ICTs, including the development of e-commerce portals to facilitate trade.

The recent initiatives Rwanda has ventured into includes the Electronic World Trade Platform (eWTP) with Alibaba, which aims to support the development of a digital economy in Rwanda.

The government has also supported the establishment of e-commerce services, market places and portals, e-payment systems, e-government service provision — Irembo where all government services can be paid for through this single portal.

The private sector, especially those in the digital services have also developed businesses around the e-commerce ecosystem, building business to business services and business to consumer services.

Among these companies are DMM. HeHe-a an integrated e-commerce platform supporting over 20 online retailers, Kasha — an online platform that sells personal products.

Get It, is another company that sells fresh food and related products to hotels, while Briskco sells construction materials and office stationery.

The global value of e-commerce increased to an estimated $25 trillion in 2015, up from $16 trillion in 2013, according to a UNCTAD 2017 Information Economy Report.

Although Africa has not realised the scale already enjoyed by developed economies, some countries are making progress on e-commerce. For instance, 89 per cent of Internet users in Nigeria shop online, 70 per cent in South Africa and 60 per cent of those in Kenya buy online. McKinsey estimates that e-commerce will account for $75 billion in Africa by 2025 from $16 billion in 2017. A multi-stakeholder project dabbed enabling the future of e-commerce is being jointly implemented by ITC, GIZ, BMZ in collaboration with Ministry of Communication and DHL, with a goal of facilitating up to 150 entreprises to become online service providers.