Describes what a company needs to know to take advantage of e-commerce in the local market and covers prominent B2B websites.
Assessment of Current Buyer Behavior in Market
According to the World Bank, 17% of the Mozambican population had access to the internet in 2016. Though the number is small in comparison to other countries, it is growing with the advent of low-cost smart phones. In 2017, the Government approved The Electronic Transactions Law providing the legal framework for developing e-commerce. Though the country’s underdeveloped infrastructure is a major barrier to access for eCommerce businesses. Small enterprises commonly use free platforms such as Facebook and WhatsApp to reach targeted groups or individuals.
Local eCommerce Sales Rules & Regulations
The eCommerce industry in Mozambique is in its infancy, there are few options available as many Mozambicans do not have access to credit/debit cards and therefore cannot shop online.
The Bank of Mozambique is the leading regulator for eCommerce payments. It is working with commercial banks to establish a national online payment system that will allow local companies to sell products online. This process started in 2018 and as consistently been delayed, severely limiting the advancement of the eCommerce industry.
Market trends point to an increase in cross-border sales as the middle class starts to look outwards for travel and shopping opportunities. Domestic sales have been stagnant due to lack of supporting infrastructure.
Local eCommerce Business Service Provider Ecosystem
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. 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.