The Impact of E-commerce on rural areas and secondary cities in Ghana

In general, trade improves economic efficiency and contributes to poverty reduction. A country such as Ghana blessed with rich natural and human resources has great potential for development. For many years, the leading foreign exchange earners for Ghana have been gold, cocoa, oil, and tourism. The country exported $1.7 billion in goods to the United States in 2021 and even more to other markets such as China, Switzerland, India, South Africa, the Netherlands, and the United Arab Emirates.

In recent times, with vast improvements in technology and more innovative trends, one sector that has gained so much ground in Ghana is the e-commerce sector popularly known as online shopping. In addition to the internet, many of the building blocks required for the growth of e-commerce, including the spread of mobile telephony and mobile money services, increased use of credit cards, and increased access to bank accounts, have shown remarkable growth in recent years. However, the biggest win for e-commerce in Ghana has been its expansion into secondary cities and rural areas across the country. Jumia, Africa’s leading e-commerce platform is celebrating its 11th anniversary and explores the impact of e-commerce on rural areas and secondary cities in Ghana.

Usually, when new trends and technology arrive, there is a massive focus on primary cities. This happens mainly because a lot of stakeholders operate in major cities which makes it easier to navigate and achieve desired results. However, in Africa, there are more secondary cities and the rural population often outweighs the urban population. Due to this statistic, it is imperative to expand e-commerce to other towns and cities outside the capital.?

Over the past few years, e-commerce giant Jumia has embarked on an expansion program across many cities and towns in Ghana. Notable among these areas are the Ashanti Region (Kumasi and surrounding towns), the Western Region (Takoradi and its environs), the Central Region (Cape Coast and surrounding towns), the Volta Region (Ho and its environs), and the Eastern Region (Koforidua and surrounding towns). In these areas, the company has launched the special Jumia Force (JForce) program under the theme ‘’Be Your Own Boss’’.? This is in response to the growing need for jobs among the youth in Ghana.?

The Jforce program enables these individuals to make a living while improving basic sales and marketing skills through regular training and on-field activations. The other beneficiaries of this JForce program are the consumers who get access to a wide range of quality essential products at affordable prices delivered to them. In many cases, where there is a lack of adequate mobile and internet penetration, these JForce agents assist the consumers in ordering their preferred products. Jumia’s robust logistics system also provides pick-up stations in all the main cities and towns across all these regions and beyond where consumers can collect their orders at reduced shipping fees.?

It is admirable to note that Jumia keeps expanding to more areas across the country and currently has over 100 pick-up stations spread through the length and breadth of Ghana. In every region, you will find a Jumia pick-up station and e-commerce is now closer to you than you ever imagined. Through the JForce program, many jobs have been created. Apart from the JForce agents, there have been opportunities for pick-up station managers and delivery agents. Other individuals have also taken hold of this opportunity to use their shops and spaces as pick-up stations where they earn extra revenue. SMEs and local vendors have also had great opportunities to expand and grow by selling on the Jumia platform.

One very interesting yet important aspect of the overall impact of e-commerce to secondary cities and rural areas in Ghana is the contribution/support to the communities. There has been a key focus on women's empowerment in rural areas in Ghana. Encouraging women to take up opportunities in male-dominated fields has been challenging yet very inspiring. Today, there are many women who have become delivery associates and pick-up station managers and are doing well for themselves. About 40% of the JForce agents in Ghana are also women.?

As Jumia celebrates 11 years of e-commerce in Ghana, it is very important to critically look at ways to further improve the industry while expanding to more rural communities in Ghana and Africa. The impact of e-commerce cannot be overemphasized. From the 14th to the 30th of June 2023, the e-commerce giants will celebrate this achievement with a massive sales campaign where consumers throughout the country will get big deals and discounts on a plethora of products across various categories. Quality items at affordable prices with reduced shipping fees and opportunities to win a lot of prizes through flash sales and treasure hunts.

In the end, the overall vision still remains and the goal is to improve the everyday lives of Ghanaians through e-commerce and technology. No matter where you are in Ghana, e-commerce is coming to your doorstep.