E-Commerce Challenge and Opportunity in Ethiopia

Abstract

The rapid proliferation of the Internet gave rise to the concept and practice of electronic, which has become a common phenomenon in the world today. Internet-based economic structures and information groups are the new business reality, as organizations and individuals revel in the ease of purchasing commodities and services from foreign shores. Most developing countries, however, are far from experiencing this reality due to many factors which act as obstacles for e-commerce to flourish. This thesis aims to examine opportunities and challenges in Ethiopia with respect to the barriers which can influence a county from taking advantage of E-commerce system and expected benefits derived by adopting the system. A research framework developed based on technology organization environment framework and Technology acceptance model to guide the study. The result of the study indicated that, the major challenge Ethiopian ecommerce industry faces in the adoption of Electronic commerce are, security risk, lack of trust, lack of legal and regulatory frame work, Lack of ICT infrastructure and absence of competition. The study also identified perceived ease of use and perceived usefulness as a driver of adopting E-ecommerce system. The study suggests a series of measures which could be taken by the private industry and by government to address various challenges identified in the thesis. These measures include: Establishing a clear set of legal frame work on the use of technology in ecommerce, supporting ecommerce industry by investing on ICT infrastructure needs to be focused on technological innovation competition rather than traditional bases of retail commerce competition