Advances in information technology have created great opportunities as well as threats to organization in various business sectors all over the world. Though adoption of e-commerce is considered to provide substantial benefits to business; many business in Ethiopia still have not realized to adopt electronic commerce due to different factors. The main purpose of this scientific paper is identifying and examining the challenges and opportunities of e-commerce services in Ethiopia and beside it try to see what is e-commerce and types of e-commerce.
THE CHALLENGE AND OPPORTUNITY OF ELECTRONIC
COMMERCE IN ETHIOPIA
BA degree in accounting and finance
Accountant at sikela branch
The use of electronic networks to exchange information, product service and payments for commercial and communication purposes between individuals(consumers) and business, between business themselves ,between individual themselves, within government or between the public and government, and last between business and government. E-Commerce is applied via open or closed networks. v E-Commerce consists of producers, users, public or private organizations.
Major Types of e-commerce
Business to business(B2B)Business to consumer(B2C)
Business to government(B2G)
Consumer to consumer(C2C)
Business to Business (B2B) e-commerce refers to electronic deals conducted between two businesses. For example, a restaurant orders prawns from a prawn producer or a bank Orders stationary from a stationary supplier
Business to consumer (B2C) e-commerce refers to companies that retail products (physical or virtual)over the Internet. Many of the Internet companies with high profiles and listed on some of the stock exchanges are B2C companies including Amazon.com and ebay.com. These companies operate in an environment where, irrespective of whether it is a local or international order, the client orders and pays by credit card, the system generates an invoice, and someone in the backroom processes the order.
Business to government (B2B) e-commerce is still in its infancy in most countries. It involves and electronic form of interaction between government and the business and community.
Examples of B2G e-commerce include submitting tax declarations online Paying tax, making application for and paying for licenses and passports etc, and voting online.
E-COMMERCE IN ETHIOPIA
Ethiopia still has a highly regulated telecommunication infrastructure. There is only one ISP (state controlled) and demand for internet services far outstrips supply. Although the ETC has promised to provide such services, they seem unable to do so, or are slow to meet the demands of the community. One positive aspects of telecommunication in Ethiopia is that the cost of local telephone seems to be cheaper relative to other LDCs.
According to UNCTAD (2001) development report, Ethiopia, probably more so than any other African LDCs,has a large affluent diasporas .many Ethiopian entrepreneurs are based outside the country, selling various unique Ethiopian content product online. Foreign based Ethiopian websites Ethiopian market Ethiopian art, music, designs, geez font software etc. despite regulatory and infrastructure problems, there are few Ethiopian companies identified as ecommerce operation. A poor banking infrastructures, the absence of credit cards and stringent exchange control regulation are significant barriers to development and the growth of ecommerce. There is low quality of internet access in terms of number, reliability, capacity, cost and range of service of internet service providers. Prohibition, low bandwidth, long waiting lists. It seems to be the cost of internet is small relative to other neighboring states but it is expensive relative toper capital income of majority of the population. For instance 30 hours of internet usage costs about 15% of the average salary of high school teacher.
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