Ethiopian exporters have yet to meet the requirements needed to access Alibaba’s global e-commerce platform, while businesses say high costs, quality standards and limited support are discouraging them from using international online marketplaces.
Baheru Zeyenu, Chief Executive Officer of Africom Technologies, Alibaba’s representative in Ethiopia, told Capital that efforts are under way to connect Ethiopian exporters with the platform, but no exporter has so far met Alibaba’s minimum requirements.
He said exporters must satisfy criteria covering product type, packaging, quality, composition and environmental standards.
Alibaba offers Ethiopian businesses access to international buyers in markets including China, Africa, the United States and Asia. Baheru said the platform could provide significant opportunities for exporters, particularly those dealing in coffee and other agricultural products.
However, Ethiopian exporters seeking to use the platform are required to pay a fee of US$5,000. Baheru defended the cost, noting that exporters participating in international trade exhibitions can spend more than US$10,000 on accommodation and other expenses, while e-commerce platforms can provide access to buyers throughout the year.
He also encouraged Ethiopian exporters to explore the Chinese market, where interest in coffee is growing. He said Alibaba is seeking to create greater opportunities for small and medium-sized exporters.
According to data cited by Africom Technologies, products worth more than US$3.5 billion are traded through Alibaba each day, amounting to about US$1.4 trillion annually.
Despite the potential of international e-commerce, an Ethiopian coffee exporter said the platforms remain difficult to access, particularly for small and medium-sized businesses.
The exporter, who requested anonymity, said storage expenses, platform and service fees, quality-related costs and limited support from stakeholders are among the main barriers.
“E-commerce platforms such as Alibaba offer significant market opportunities, but they also present major challenges for small and medium-sized exporters,” the exporter said.
He said Ethiopia’s traditional export model, which largely involves exporting commodities without significant value addition, also limits the country’s competitiveness in international online markets.
According to the exporter, international buyers increasingly seek products that require less processing and are easier to use, creating additional challenges for Ethiopian businesses competing in global markets.
He also identified limited domestic market linkages, concerns over reliability, high international competition and the costs associated with meeting export standards as factors discouraging exporters from adopting e-commerce platforms.
The comments highlight a gap between the potential offered by global digital marketplaces and the ability of Ethiopian businesses to meet the financial, quality and operational requirements needed to participate in them.
Ethiopia has been opening its logistics sector to foreign investment as part of efforts to improve export and import services and attract foreign direct investment. For exporters, however, expanding into digital international markets will also require greater capacity to meet product-quality, packaging, sustainability and market-access requirements.
