Mozambique - eCommerceMozambique - eCommerce
Overview
According to the World Bank, 9% of the Mozambican population had access to the internet in 2015. Though the number is small in comparison to other countries, it is growing with the advent of low-cost smart phones. The Electronic Transactions Law approved in January 2017 provides the legal framework for developing e-commerce.
Current Market Trends
The e-Commerce industry is just starting in Mozambique, there are few options available as many Mozambicans do not have access to credit or debit cards and therefore cannot shop online. E-commerce is also hampered by the lack of shipping to locations outside of the major cities.
Domestic e-Commerce (B2C)
Domestic online sales transactions are currently insignificant but expected to grow with the emergence of an urban middle class.
Cross-Border e-Commerce
International online trade is a growing trend for local companies which purchase products from China. However, due to delivery delays and products that do not function as expected, many are skeptical of online purchases from foreign companies.
Popular e-Commerce Sites
Some pioneering enterprises are changing consumer habits and making sales online. The recently launched online grocery Izyshop is gaining market share. Other examples include Compras and Xava, which offer electronics. Online sales are expected to grow along with the emerging middle class.
Online Payment
Few local sales transactions are done online, as consumers are hesitant to use credit and debit cards online. However, the limited choice of goods available from local stores is driving affluent consumers to international online stores, such as Amazon or European online stores despite the high importation costs.
Mobile e-Commerce
Mobile applications such as Mcel’s mKesh and Vodacom’s M-Pesa are used to facilitate the transfer of money and payment of services. Such platforms are commonly used in remote areas where users have limited access to banks and financial institutions.
Digital Marketing
Few local companies advertise online. The bulk of the advertising that is done online consists of banners on websites and social media pages. Some companies have started using YouTube as a platform to reach customers.
Major Buying Holidays
There are no major buying holidays in Mozambique apart from Family Day (December 25th). The Muslim holidays Eid al-Fitr and Eid al-Adha are celebrated by a fifth of the Mozambican population, and it is common practice to exchange gifts during these periods. Evening social events among the Muslim community to break the daily fast are common during the lunar month of Ramadan, leading to increased purchases of foodstuffs and non-alcoholic drinks during this period.
Social Media
Social media is commonly used by the informal sector/grey market to showcase products. Small enterprises commonly use platforms such as Facebook and Whatsapp to reach targeted groups or individuals.