A new report has revealed that online marketplaces could create around 3 million new jobs in Africa, which will go along way in boosting the countries economies.

“Online marketplaces will create around 3 million new jobs in Africa by 2025—roughly one for every 150 unemployed Africans or one for every 15 unemployed workers aged 15 to 24,” the report states.

According to the report, How Online Marketplaces Can Power Employment in Africa, by Boston Consulting Group, online marketplaces such as Jumia, Uber, Travelstart and the rest will create direct jobs such as delivery drivers/riders, retail, and hospitality workers.

“Across Africa, Jumia, Uber, Souq, Thundafund, Travelstart, and a host of other online marketplaces are starting to boost incomes, create jobs, and offer new opportunities for workers,” the report said.

The report further says these businesses will create an additional 1.8 million “induced” jobs such as car mechanics and cleaners, tourist guides, and craftspeople, which be created through the additional economic activity stimulated by online marketplaces.

The report on online market places and job creation also said these businesses will increase the supply of goods and services and unlock new demand in remote areas, which will boost consumer spending and as a result boost African economies.

“Online marketplaces can boost economies—especially in developing African nations—by improving market efficiency and increasing supply and demand,”

The report urges governments to create a healthy environment for online businesses to thrive in order to harness employment opportunities.

“Governments need to create a healthy environment in which these businesses can not only thrive but also deliver inclusive economic growth in underserved regions and advance national development goals,”

WHY AFRICA?

According to the report, the economic benefits of online marketplaces will be amplified in Africa largely because most of the continent’s economies and formal job markets remain underdeveloped.

“Africa’s retail sector is also very underdeveloped. For perspective, consider that as of 2018 there were 136 physical retail stores per 1 million inhabitants in Latin America, 568 per million in Europe, and 930 in the US. In Africa, there were fewer than 15 formal retail stores per million people. This extremely low penetration suggests that e-commerce has only a minimal chance of displacing existing sales in the formal retail sector,”.

READ FULL REPORT HERE