Egypt - eCommerce
Describes how widely e-Commerce is
used, the primary sectors that sell through e-commerce, and how much
product/service in each sector is sold through e-commerce versus
brick-and-mortar retail. Includes what a company needs to know to take
advantage of e-commerce in the local market and, reputable, prominent B2B
websites.
Last
Published: 7/27/2017
Egypt's Electronic Signature Law 15 of 2004
established the Information Technology Industry Development Agency (ITIDA) to
act as the e-signature regulatory authority and to further develop the
information technology sector in Egypt. An e-government initiative has been
implemented to increase government efficiency, reduce service-provision time,
establish new service-delivery models, reduce government expenses and encourage
e-procurement. In 2009, the government implemented the e-signature
service, allowing public and private companies to offer e-signature
authentication.
The Egyptian market has the largest population of internet users in the MENA region. There are around 48 million internet users, of which 8% make online transactions. Most online transactions are in the categories of electronics, entertainment, airline tickets and fashion. E-commerce faces numerous challenges in the Egyptian market: there is a low number of credit/debit card holders - around 10 million - hence 80 percent of e-commerce in Egypt relies on cash on delivery. However, the rate of credit card issuance is growing annually by around 40 percent, which indicates that cash dependency may decrease.
The Egyptian market has the largest population of internet users in the MENA region. There are around 48 million internet users, of which 8% make online transactions. Most online transactions are in the categories of electronics, entertainment, airline tickets and fashion. E-commerce faces numerous challenges in the Egyptian market: there is a low number of credit/debit card holders - around 10 million - hence 80 percent of e-commerce in Egypt relies on cash on delivery. However, the rate of credit card issuance is growing annually by around 40 percent, which indicates that cash dependency may decrease.
Prepared by our U.S.
Embassies abroad. With its network of 108 offices across the United States and
in more than 75 countries, the U.S. Commercial Service of the U.S. Department
of Commerce utilizes its global presence and international marketing expertise
to help U.S. companies sell their products and services worldwide. Locate the
U.S. Commercial Service trade specialist in the U.S. nearest you by visiting
http://export.gov/usoffices.
Egypt is home to
the highest number of Internet users in the Arab world, with over half the
population online, accounting for 48 million users.
Alia el-Mahdy, Professor of Economics at Cairo University, said,
“There is a lot of potential in the e-commerce market in
Egypt. It is a large country with a huge population and a lot of untapped
resources.”
Payfort’s report on the State
of Payments in the Arab World, says that eCommerce will reach
2.7 billion USD by 2020, showing steep growth given that in 2014 it was worth
just 1.4 billion USD. The leading age group for online purchases are 26-35
years old.
Mahdy claims that eCommerce will continue to grow for a number
of reasons, “A large percentage of Egyptians are under 30 years old. There is
huge government support for technology. There is an unprecedented growth on
smartphones, and there is also a greater demand for branded products,” she
said.
Egypt is not without its challenges, 72% of customers use cash
for their eCommerce purchases, and currently only 8% of internet users are
online shoppers.
Sherif El-Rakabawy, founder of Yaoota, says,
“Egypt remains a cash-based economy, if we
move beyond the domination of cash society, the growth of e-commerce in Egypt
would accelerate even more.”
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