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    E-Commerce in Rwanda: E-Commerce Has Expanded Rapidly Over The Last 5 Years

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    E-commerce has expanded rapidly in Rwanda over the last 5 years. However, there are still some challenges from a customs perspective. Key challenges include a lack of information among consumers about applicable taxes, de minimis thresholds being too low, difficulties valuing and determining the origin of e-commerce imports, inefficient postal and transport services, and operational issues like online payment options and cybersecurity concerns. The document outlines these challenges and notes that while e-commerce offers benefits, addressing these regulatory and logistical hurdles will be important for its continued growth in Rwanda.

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    E-Commerce in Rwanda: E-Commerce Has Expanded Rapidly Over The Last 5 Years

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    FAMILY TV
    13 views9 pages
    E-commerce has expanded rapidly in Rwanda over the last 5 years. However, there are still some challenges from a customs perspective. Key challenges include a lack of information among consumers about applicable taxes, de minimis thresholds being too low, difficulties valuing and determining the origin of e-commerce imports, inefficient postal and transport services, and operational issues like online payment options and cybersecurity concerns. The document outlines these challenges and notes that while e-commerce offers benefits, addressing these regulatory and logistical hurdles will be important for its continued growth in Rwanda.

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    E-commerce has expanded rapidly in Rwanda over the last 5 years. However, there are still some challenges from a customs perspective. Key challenges include a lack of information among consumers about applicable taxes, de minimis thresholds being too low, difficulties valuing and determining the origin of e-commerce imports, inefficient postal and transport services, and operational issues like online payment options and cybersecurity concerns. The document outlines these challenges and notes that while e-commerce offers benefits, addressing these regulatory and logistical hurdles will be important for its continued growth in Rwanda.

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    © All Rights Reserved
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    13 views9 pages

    E-Commerce in Rwanda: E-Commerce Has Expanded Rapidly Over The Last 5 Years

    Uploaded by

    FAMILY TV
    E-commerce has expanded rapidly in Rwanda over the last 5 years. However, there are still some challenges from a customs perspective. Key challenges include a lack of information among consumers about applicable taxes, de minimis thresholds being too low, difficulties valuing and determining the origin of e-commerce imports, inefficient postal and transport services, and operational issues like online payment options and cybersecurity concerns. The document outlines these challenges and notes that while e-commerce offers benefits, addressing these regulatory and logistical hurdles will be important for its continued growth in Rwanda.

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    of 9

    19.04.

    2018

    E-COMMERCE IN RWANDA

    IMPLEMENTATION CHALLENGES FROM CUSTOMS PERSPECTIVE

    E-Commerce has expanded rapidly over the


    last 5 years
    Rwanda is a knowledge based economy, ICT is the key driver:
    ❖The 4G coverage reaches 95% of the population
    ❖Construction of 5000Km of Fiber optic network
    ❖Mobile penetration rate is at 76%
    ❖Online payment is becoming a popular method of payment
    ❖Social media is emerging as important marketing media.

    1
    19.04.2018

    REGULATORY FRAMEWORK
    ▪Law on electronic transaction ▪Intellectual property law ▪Consumer protection Law

    E-commerce is booming in the domestic


    market …
    Many online companies are registered in Rwanda,

    2
    19.04.2018

    E-commerce is booming in the domestic


    market
    They mostly deal in :
    Motorvehicles Clothes Electronics Food

    Electricity E-tickets
    Mobile Payment is the most attactive
    method of payment

    E-Commerce Cross border trade


    IMPORT EXPORT
    ❖Online ordering go through ❖ E-commerce is a key
    Alibaba and Ali Express enabler to boost SMEs
    ❖Major e-commerce partners: capacity to export.
    China and Dubai ❖Large enterprise embraced
    ❖The method of payment is the e-commerce for export.
    credit cards, visa cards,….. ❖E-commerce is promoting
    made in Rwanda products

    3
    19.04.2018

    Imports

    E-TICKETS

    SOFTWARES

    Importing a car through E-Commerce


    TRADITIONAL METHOD E-COMMERCE

    4
    19.04.2018

    BENEFITS
    ❖Faster and cheaper and more convenient than the traditional
    method
    ❖It helps businesses go global
    ❖Full of choices, there is no geographical limitation
    ❖Reduced shipping delays
    ❖Better deals offered

    CHALLENGES- 1. Lack of information


    UNCTAD ASSISTED RWANDA TO DEVELOPED A TRADE PORTAL:

    ❖Access to all trade related


    information,
    ❖All requirements,
    ❖Laws and regulations,
    ❖A step by step guide.

    5
    19.04.2018

    CHALLENGES – Customs Clearance


    1. Tax component is ignored. People are attracted by the low
    prices but they don’t compute taxes, this is mainly due to
    lack of information.

    2. The de minimis is below 10USD, parcels with a value


    above 1.5USD still have to go through the customs
    procedures and this is a barrier to e-commerce.

    CHALLENGES – Customs Clearance


    3. LESS CONTROL HIGH RISKS OF SMUGGLING PROHIBITED
    GOODS/RESTRICTED GOODS

    4. E-commerce a new concept to customs officers which can


    cause delays in clearing trying to determine the value and the origin.

    6
    19.04.2018

    CHALLENGES – Transport and logistics


    Supply chain logistics are still challenging:
    ❖ Postal services are still not trackable, not efficient enough
    to support the E-Commerce
    ❖ Express courier are too expensive and still taking to much time
    ❖ Transports costs are still high, not widely available and still relying on consolidated
    shipping

    CHALLENGES; operationalization
    ❖Bank transfers or charges are still a big challenge
    ❖There is no local trusted infrastructure that enables online
    payments processing system, most of the online payments still rely
    on global systems like Pay Pal
    ❖Lack of trust, online payment is still a new concept
    ❖Online fraud risks
    ❖Cyber crime and hacking the system is a major concern

    7
    19.04.2018

    CONCLUSION

    E-commerce benefits outweigh the challenges

    THANK
    YOU

    8
    19.04.2018

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