Increase the use of e-commerce in Egypt
On April 3rd it was published that there has been a significant growth in online businesses in Egypt, which is 12th country in the world in terms of investments in e-commerce, with the expectation that by 2020 this market will reach 2.7 billion USD, double the amount in 2014.
At the end of December 2014 the internet penetration rate was up to 55%, double what was before the outbreak of the “Facebook Revolution” in January 2011. Alongside an increase of online purchases, from 1.4% to 8.7% and the abandonment of wire line communication and moving to the cellular and internet services.
Regarding the use of internet, it was reported that 70% of Egyptians aged 15-35 spend more than three hours a day on-line, and from more than 3,000 who made online purchases in 2015, 50% of them were between 26-35. While claiming that online shopping is expected to triple during this year despite relatively low penetration rate of e-commerce to the country which stands at only 3.4%, probably due to skepticism users to make online payments, with 80% of online consumers prefer to use cash instead.
The low rate of penetration of e-commerce, needs to be added to the country’s slow internet, claiming to be located next to last in terms of internet speed, as shown by a study, which examined 31 countries.
In light of this situation, from the end of 2013 there has been an online campaign named Internet Revolution Egypt to improve internet speed and reduction of costs. These measures bore fruit when the protest leaders met with the Minister of Communication and agreed on raising internet speed (the speed of 512kbps cancellation and provision of minimum speed to 1Mbps) and lower prices. Further improvement is expected as a new submarine cable is being deployed – Asia Africa Europe-1 (AAE-1) which connects Southeast Asia with Europe and will pass through Egypt.
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