E-commerce in Mozambique

E-commerce

E-commerce market

The e-commerce market is still at its early stage in Mozambique. Domestic online transactions are really low, but expected to grow with the improvements to the IT infrastructures and the emergence of an urban middle class.
Among the factors that hamper the growth of the e-commerce market, there is the fact that many Mozambicans do not possess credit or debit cards and therefore cannot shop online. Mobile applications such as mKesh by Mcel and M-Pesa by Vodacom are aimed at facilitating the transfer of money and are commonly used in remote areas where users have limited access to banks and financial institutions. Shipping is also a problem, as it is quite hard to reach locations outside of the major cities.

Currently, the government is trying to boost online retail, and in January 2017 it approved the Electronic Transactions Law, which constitutes the legal framework for the development of the e-commerce in the country.

The main platforms to buy online are Amazon and Alibaba, together with Izyshop (grocery), Compras and Xava (electronics), OLX (marketplace) and Jumia (clothing).
Concerning B2B e-commerce, local companies are purchasing more and more online, especially from China. This trend is expected to grow in the near future, although expensive shipping costs and delivery delays are still a hindering factor.

Most internet users in Mozambique use the internet for social media. The most popular social network is Facebook, with an estimated 1.8 million users in 2017 (IWS).