The COVID-19 pandemic demands a significant shift in how we live, work, and socialize. It has therefore made it necessary for society to prioritize innovation to meet immediate challenges caused by the pandemic. The ensuing response is also producing inspiring innovative solutions, catalysing the use of digital technologies, proving that necessity is indeed the mother of invention. 

Between June and August 2020, we conducted  a deep dive into sectors on the African continent that have been significantly affected by the impact COVID-19 using  a 5-step sectoral approach analysis. This approach provided a mechanism to identify the challenges associated with the pandemic, review interventions and innovations in the select countries, and measure how these interventions were supported, compared to the strength of the sectoral innovation systems in each of the countries. The 5-step sectoral approach analysis compiled insights from key stakeholder interviews, desk research, Twitter sentiment analysis, and a qualitative survey. The analysis covered Egypt, Kenya, Nigeria, Rwanda, Senegal, and South Africa. More about our methodology and approach can be found here.

With the Coronavirus now present in almost all African countries, the pandemic has created opportunities for E-Commerce companies to develop innovative solutions that will help sustain their business mostly leveraging on technology which has led to a shift in consumer behavior from brick and mortar stores to online trade channels and digital platforms.

Due to lockdowns and curfews adopted by most African countries in a bid to reduce the spread of the coronavirus, most physical stores were closed to consumers and this gave room for e-commerce to thrive. Also a lot of partnerships were formed as these companies thought it wise to work closely with delivery companies to hasten the delivery timelines and to ensure the overall success of each transaction via their online platforms. We have also seen partnerships with online payment platforms which has helped with cashless payment.

Most E-commerce platforms have also placed more focus on the sale of hygiene products such as hand sanitizers, face masks etc as well as food items which are very essential during this period. The pandemic has also created an avenue for small and medium scale businesses to create their own online platforms as we have seen companies make a shift fully to the digital space as against just opening up a physical store. Some businesses even went ahead to close all their stores as they found the digital space more affordable to maintain and help save them the cost of rent and other expenses associated with the brick and mortar store models.

Although there are challenges currently been faced by the E-commerce sector such as unavailability of Supplies as most products are imported, also logistics , digital security and internet access to mention a few, we still believe Coronavirus crisis has been a boom for some online delivery platforms  

Below we shed light on some innovative responses in the sector from the private, public and international institutions:

Nigeria:

1. The idea is taking offline stores online by a single company to bring about the need for other infrastructures like fulfilment centres, in-house software development, and logistics services to ensure the proper running of their businesses. YDS launched a split-pay service which allowed their customers to pay for products within two months at 0% interest fee.  YDS introduced cash on delivery like most e-commerce players do and developed a software, merging warehouse inventory with the pop-up inventory. Since the government permitted the delivery of essential services like groceries during the lockdown, YDS seized the opportunity and launched YDS Groceries on April 3. Source.
2. Jumia reduced fees on its JumiaPay finance product to encourage digital payments over cash, which can be a conduit for the spread of coronavirus. Also, Under its ‘Stay Safe’ Campaign, Jumia entered a partnership with Reckitt Benckiser and Procter & Gamble (P&G)  to enable customers to have access to hygiene products on its platform for Nigerians during the COVID-19 lockdown. In addition, they partnered with other brands and introduced free delivery on specific products and cart quantities.  Jumia donated certified face masks to health ministries in Kenya, Ivory Coast, Morocco, Nigeria. They are also collaborating with health ministries in several countries to use its website and mobile platforms to share COVID-19 related public service messages. Source.
3. As demand increases with the restrictions of movement, Kwik is partnering with several grocery-selling e-commerce businesses such as SPAR to deliver groceries to customers’ doorstep when they place their orders on the sellers’ website.
4. To cushion the impacts of the pandemic on customers and also encourage people to stay at home, Konga is giving discounts and free deliveries on groceries, gadgets and other household items to customers based on orders on its platform. Also, a N10m intervention fund in form of vouchers was provided for customers.

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