# D. Rustagi, I. Belkhayat, F. Aluko, O. Osamuyi: The New Face of Digital Commerce l Africa/Week 2025 Source: https://www.youtube.com/watch?v=HpWJe2kCMv4 Recap page: https://rapidrecap.app/video/HpWJe2kCMv4 Generated: 2026-02-06T23:33:00.26+00:00 --- ## Quick Overview The panel discussion at Africa/Week 2025 focused on the evolution of digital commerce in Africa, highlighting challenges like poor infrastructure and low digital payment adoption, contrasted with the success of vertically integrated models like Jumia and the growth of niche players like Choweck in solving specific local problems, such as food delivery logistics in Nigeria. **Key Points:** - The panel explored the challenges facing digital commerce in Africa, noting that in 2015, when some entered the industry, infrastructure and consumer behavior (high preference for Cash on Delivery) were significant barriers. - Jumia, despite being an early player, struggled with unit economics due to high logistics costs and the need to build infrastructure from scratch, leading to high costs for fulfilling small, low-value orders. - Choweck, operating in Nigeria, focuses on food delivery and has successfully built a vertically integrated solution, including warehousing and logistics, to ensure efficient delivery. - The speakers highlighted that the Nigerian consumer base is more accustomed to digital payments compared to some earlier markets, but the reality of infrastructure gaps (like unreliable transportation) remains a challenge. - A key lesson learned is the importance of solving a specific problem (niche focus) rather than immediately trying to become a 'super-app' that attempts to do everything. - The panel identified that successful African e-commerce companies must build their own tech stack and logistics infrastructure to manage the inherent complexities, unlike platforms in more developed markets like China or South Korea. - The need for continuous adaptation is crucial, as evidenced by the panelists' current focus on capturing the growing demand for digital financial services and optimizing last-mile logistics. ![Screenshot at 00:05: A panelist discusses the challenges of building digital commerce infrastructure in Africa, referencing the need to solve fundamental problems like logistics and customer trust that differ from established global markets.](https://ss.rapidrecap.app/screens/HpWJe2kCMv4/00-00-05.jpg) **Context:** This video captures a panel discussion titled 'The New Face of Digital Commerce' from the Africa/Week 2025 event, hosted by Norrsken. The discussion features several leaders in African digital commerce and logistics, including representatives from Jumia, Choweck, and Anddo, who share insights on the challenges and evolution of the sector, particularly contrasting early e-commerce attempts with modern, specialized solutions. ## Detailed Analysis The panel discussion centered on the transformation of digital commerce in Africa, contrasting the experiences of early entrants like Jumia with newer, more focused models. The initial difficulty in 2015 stemmed from poor infrastructure and a consumer preference for Cash on Delivery (COD), which resulted in high logistics costs and low margins for companies trying to handle small, frequent orders (00:05, 08:08). Jumia, having been an early player, struggled significantly with unit economics because they had to build everything—logistics, financing, and tech—from the ground up (08:18, 09:54). The speaker from Anddo noted that their strategy was to solve specific problems rather than immediately aiming to be a 'super-app' (23:54). For instance, Choweck, operating in Nigeria, focused intensely on food delivery, enabling them to build robust, vertically integrated solutions encompassing warehousing and logistics to ensure faster delivery times (01:05, 06:06). The panelists agreed that the challenge in Africa, especially in markets like Nigeria, is the lack of existing reliable infrastructure, forcing companies to invest heavily in building their own (04:48, 06:08). This contrasts with markets like China where existing infrastructure allows for immediate scaling (08:40). The discussion concluded with the point that customer expectations are evolving—they now expect highly efficient, nearly instantaneous digital services, even for basic needs like groceries—and companies that successfully integrate these solutions directly will win market share. ### Evolving E-commerce Landscape - Discussion contrasts early challenges (2015) like high COD reliance and poor infrastructure with current specialization (00:04, 08:18) ### Jumia's Early Struggles - Faced high logistics costs and low margins due to building infrastructure (warehousing, last-mile) from scratch (01:17, 08:18) ### Choweck's Niche Focus - Built vertically integrated food delivery in Nigeria, handling everything from warehousing to delivery efficiently (01:05, 06:06) ### Infrastructure and Trust - Lack of reliable infrastructure and high consumer trust issues (preference for COD) are major barriers in African markets (04:54, 28:28) ### The Super-App Dilemma - Building an all-in-one app is risky; focus on solving one core problem well (e.g., Fintech for merchants, specialized delivery) is advised (23:54, 25:23) ### Market Differences - South Africa is more digitally advanced than Nigeria, where cash preference and infrastructure gaps remain significant (07:57, 21:35) ### Future Outlook - Success lies in building strong tech layers and efficiently serving niche customer needs, driving adoption of digital payments (19:51, 40:22) ![Screenshot at 00:00: Panel setup at Africa/Week 2025 featuring five speakers on stage with the Norrsken branding visible.](https://ss.rapidrecap.app/screens/HpWJe2kCMv4/00-00-00.jpg) ![Screenshot at 01:17: Femi Aluko introduces himself and his company, Choweck, which focuses on food delivery across Africa \(01:05\).](https://ss.rapidrecap.app/screens/HpWJe2kCMv4/00-01-17.jpg) ![Screenshot at 08:48: Ismael Belkhayat discusses how early e-commerce players struggled with logistics costs in markets like Morocco \(08:50\).](https://ss.rapidrecap.app/screens/HpWJe2kCMv4/00-08-48.jpg) ![Screenshot at 29:53: A panelist \(likely the representative from Anddo\) explains that while many try to copy WeChat, building a full 'super-app' vertically is extremely difficult in Africa \(29:58\).](https://ss.rapidrecap.app/screens/HpWJe2kCMv4/00-29-53.jpg) ![Screenshot at 44:46: The panel concludes, with the speakers acknowledging the time constraints and thanking the audience.](https://ss.rapidrecap.app/screens/HpWJe2kCMv4/00-44-46.jpg)