Ethiopian E-Commerce Industry in a Boom

E-commerce in Ethiopia has shifted the gear on how business is done, primary internet transaction introduced at full scale by banks through mobile and card banking services. These technologies follow the launch of centralized, online real-time, electronic banking solutions advancing the banking service which increased bank revenue as their clients number increased.

This rather conscious decision of the banks was meant to put the banks online. The motives were to increase and build the confidence of the public and shareholders in order to attract more capital to the banks.  It did exactly that making every local bank networked. The implication of implementing online transaction can also observed from individuals selling items on social media getting more customers online than at their shops. The reasons are threefold it’s easy, time-saving and affordable.

Clearly e-commerce is not being fully utilised and much needs to be done to rightfully take advantage of it to support and even grow the Ethiopian economy. One neglected sector is the tourism sector. Ethiopia owns several tourist attraction sights but suffers from limited promotion and inadequate infrastructures affecting the country’s benefit from the sector.

Nevertheless, the sector now benefits from better attention from the government with the encouragement of  travel agencies and development of hotels. Hotel developers are fortunate to get construction plots without lease payment. Following this, range of new hotels and lodges flooded every corner of the country. As the country strives to improve the in-house infrastructure, promoting the hotels and lodges to the rest of the world remained unavailable until joined the flourishing Ethiopian tourism industry.

This will bring new business opportunities not only to hotels but also to the tourism industry which is targeting to bring one million visitors to the country until end of 2015.  Indeed the company will help hotels to better manage booking free of charge. Hotel booking is now simplified by allowing users from all over the globe to compare best offered prices and secure a booking while still away. The company plan is to make every available accommodation in Ethiopia into online so that service is communicated to the right people at the right time.  It will also be engaged in promotion of destinations for business and vacation facilitating the movement of travelers.

Jovago is recently founded by the Africa Internet Group already having 250 employees being one of the leading e-commerce enterprises in the continent. It has offices in Africa, Asia and Europe with successful experiences under its belt. The company joined the Ethiopian market with the necessary resources and expertise. Without a doubt it’s coming to Ethiopia will promote the country to achieve the success it desires through tourism industry. From every stakeholder the expectation to advance hotel booking system through the company is much higher as it took over the market this May.

By Eden Sahle

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