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How Online Marketplaces Can Power Employment in Africa
Article

How Online Marketplaces Can Power Employment in Africa


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Editorial Rating

8

Qualities

  • Innovative
  • Overview
  • Concrete Examples

Recommendation

The internet has driven economic growth in the developed world for quite some time. However critics lament that online retail is putting brick-and-mortar stores out of business and that gig-economy platforms are displacing payrolled workers. Less so in Africa, a Boston Consulting Group report concludes: In underdeveloped and underserved markets, the benefits of online marketplaces vastly exceed potential drawbacks. The report provides a road map for policy makers, economic development consultants and online business owners on how to capture the potential of e-commerce to transform African economies and societies for the better.

Take-Aways

  • Throughout Africa, online marketplaces have the potential to boost economic growth and overall employment.
  • Online marketplaces can improve market efficiency, boost supply, and increase demand for goods and services.
  • With a ratio of less than 15 brick-and-mortar retail stores per 1 million people, e-commerce is unlikely to displace traditional stores but will create and satisfy demand in untapped markets.

About the Authors

Patrick Dupoux, Lisa Ivers, Amane Dannouni, Zineb Sqalli and Guy Ngambeket are expert consultants with the Boston Consulting Group office in Casablanca, Morocco. 


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