The Impact of online marketplaces in Kenya on African Economic growth
Throughout Africa, cities are growing and expanding at an accelerated rate. This rapid expansion is fueled by the continent's youth who believe they can find better opportunities in cities than in rural areas. The industrial started to take shape in Africa with leading countries such as Nigeria, South Africa, Egypt, Ghana, Kenya, Ethiopia, Tanzania, and many more. It makes more and more sense to start encouraging African businesses to start buying and selling products made locally. Since African countries got independence many critics have always pointed out that the lack of trade between countries is the reason why economic development has not accelerated. In the current state of affairs, everything seems to be in place for the change to happen.
With help of the new digital marketplace technologies, African countries can now easily overcome challenges that would see them stuck two to three decades ago. The digital business marketplace is one of these technology. It is also called the eCommerce marketplace or online marketplace. This technology allows market participants to trade without boundaries. A trader in Ivory Cost would not need to travel to Kenya in order to assess the available business opportunities. As long as local manufacturers, producers, wholesalers, and other suppliers have registered or joined a marketplace, they will be seen across borders without restrictions. Online marketplace platforms have the potential to resolve the African trade issue both within countries and within Africa.
The online marketplace in Kenya
The online marketplaces in Kenya are dominated by retail digital marketplaces. A b2b online marketplace in Kenya would have made the local production available in the entire country with the producer’s price. The result is an increase in the demand for locally produced goods because of their availability first and second because the prices become lower and acceptable. The online marketplaces in Kenya help b2b transactions between buyers and sellers seller easy. In fact, when the connection between buyers and sellers is made easy, simple, fast, and efficient; the cost of the process become lower.
Given the similarity and development level among the African countries. If applied, the strategies and online marketplaces in Kenya are likely to work in other countries, and vice versa. The digital business marketplace can be seen as a solution to African economic development. It will allow countries to establish reliable trade linkage between countries. Help trade purchase supply directly from factories in other countries at the original price. The market information would become available to everyone leaving open doors to perfect competition. The African manufacturers and producers will now benefit from being part of a 1,4 billion people market size.
