Dubuy, an e-commerce platform by UAE global logistics provider DP World, has entered Kenya with plans to launch the business-to-business (B2B) site in more countries across the continent in the coming months. This marks Dubuy’s third market in East Africa, coming months after setting up in Rwanda and unveiling plans to enter Ethiopia. The wholesale e-commerce platform, owned by the government of Dubai, launched earlier this year to help businesses buy and sell goods. Purchased goods are fulfilled through the supply chain of DP World and its logistics partners. The e-commerce site is set to leverage DP World’s ports (currently eight, with three more under development) and logistics network in Africa to enter new markets in the continent. DP World’s hubs in Africa are spread across Rwanda, Namibia, Mozambique, South Africa, Senegal, Egypt, Algeria, Nigeria, Djibouti, and Somaliland, meaning that they will likely inform its regional expansion plans. Dubuy plans to cover all of Africa by 2025.
The site has 4,000 active merchants and so far, has received 500,000 visits from sellers and buyers in Africa, they said. Automotive supplies and kitchen appliances are most in demand. Owing to working closely with governments, traders using Dubuy are said to benefit from heavily discounted shipping tariffs, and in Kenya, the platform has an arrangement with the National Bank of Kenya for trade finance. Online marketplaces have increasingly become important avenues of growth for small and medium businesses in Africa, yet the continent accounts for a small share of global e-commerce due to several factors, including internet connection and cost of data. Kenya is ranked among the top 100 fastest growing e-commerce economies in the world, according to the 2020 UNCTAD B2C Commerce Index. About 72.9% of the population uses mobile money account, while 26.1% are active e-shoppers and pay bills online, making the country ripe for e-commerce.