‘E-Commerce offers V-shaped recovery’

BUUMBA CHIMBULU writes@SunZambianBUSINESSES should exploit eCommerce to aid recovery from effects of Covid-19, says, Economics Association of Zambia (EAZ) National Secretary, Mutisunge Zulu.Mr Zulu stressed that commerce as an enabler must be embraced by business entities to aid Zambia’s “V” shaped recovery.He said this when speaking at the eCommerce Expo and Conference for 2020 recently that ecommerce was still received with inac- tivity by many players that preferred transacting cash.This, Mr Zulu explained, raised a confluence of concerns ranging from tax evasion to lack of trust in the platform value chain which needs assurance by service providers to earn confidence of local users.“Without a healthy labour force, Covid-19 has shown us that there would be no businesses let alone technology, an under played factor of production, which covers eCommerce has now more than ever become a key enabler in supporting operational resilience of businesses.“There has been increased innovation in the local eCommerce space as entities such as AfriDeliv- ery have tapped the curve to partner with firms such as Lafarge Plc to deliver ce- ment to client’s door steps,” Mr Zulu said.Zulu however bemoaned the volume of imports through eCommerce which were potentially adding pressure on the exchange rate.He further countered this view with the existing structural posture of the country where production of competitive products such as phones and fabric was nonexistent, making international products preferable.Zambia’s private sector has borne the brunt of disease pandemic with some resorting to trim wages while others have outright laid off staff.There is more realisation that embracing eCommerce allows for small businesses to increase their contribution to costs there- by allowing for sustainable survival post COVID-19.Financial institutions are gearing to tap into fully fledged platform banking through understanding ecosystems.Zambia is expected to grow out of the forecast recession of -4.2 percent by slightly under two percent in 2021.Business will need more than just an enabling environment but innovation to recover in ‘V’ shape, an avenue on eCommerce can help drive it. The Sun