Digital Economy Set to Transform through E-Commerce

Experts are highlighting Uganda’s rapidly expanding digital economy, with e-commerce driving significant change in how people shop, conduct business, and interact with the market.

E-commerce platforms, especially Jumia, are playing a crucial role in this transformation, opening up new opportunities for consumers, businesses, and investors. Jumia, in particular, has emerged as a leader in Uganda’s digital transformation, making online shopping more accessible and reliable for Ugandans.

“Uganda is positioned to play a key role in this evolution, with its e-commerce sector expected to contribute over $1 billion to the local economy in the coming years,” said Vinod Goel, Regional CEO of Jumia East Africa.

Since launching in Uganda in 2014, Jumia has steadily expanded its services and invested in the country’s digital infrastructure, promoting online transactions as a safe, convenient option for Ugandan consumers.

To extend the benefits of e-commerce to remote areas, Jumia has established 105 pickup stations nationwide. This extensive network enables customers across Uganda, even in rural regions, to access the full range of products on the platform, expanding the reach of online shopping and driving economic activity throughout the country.

The widespread adoption of mobile payments is another driving force behind the rise of e-commerce in Uganda. Mobile payment options, now commonly used across Uganda, offer a secure, seamless way to make online transactions.

Goel emphasises that “this ease of payment is critical to helping e-commerce flourish, especially in emerging markets where digital access is still developing.”

With nearly half of Uganda’s internet users accessing the internet via mobile phones, Jumia’s optimised platform aligns well with the country’s digital habits.

Jumia’s annual Black Friday campaign has further boosted Uganda’s e-commerce sector. This year, Jumia is offering discounts of up to 60% on popular categories like electronics, mobile phones, fashion, and home appliances.

“This November, Black Friday will run for the entire month,” Goel noted, adding that shoppers also have the chance to win prizes of up to Shs 50 million, enhancing the campaign’s appeal and encouraging more people to shop online.

Beyond convenience, Jumia’s growth is contributing to economic development by creating jobs and empowering entrepreneurs.

According to Goel, the company’s mission is to “make online shopping a more inclusive and accessible experience, opening up a world of possibilities at customers’ fingertips.”

Looking ahead, Jumia’s expansion, along with Uganda’s broader digital economy, promises to drive sustainable economic growth, increase employment, and elevate Uganda’s position in Africa’s digital marketplace.