In Botswana, several e-commerce startups have faced closure due to challenges with payment systems. One such startup, Artify Botswana, had to shut down because buyers completed transactions offline, leading to revenue loss as the platform operated on a commission model.
E-commerce in Botswana generates a significant portion of digital revenues, but its penetration remains low at 5%. Challenges such as last-mile delivery logistics and reliance on traditional payment methods like cash-on-delivery hinder the success of e-commerce startups in the country.
Efforts like the National E-Commerce Strategy launched in 2021 have not seen much success, with platforms like BW Reka no longer operational. To overcome these challenges, there is a need for collaboration between the private and public sectors to improve warehousing, distribution, and payment infrastructure.
Startups are exploring partnerships with local courier services for logistics and awaiting the implementation of a national payments switch by the government to enhance payment gateways. By working together and addressing these obstacles collectively, the e-commerce sector in Botswana can potentially thrive.