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 E-commerce has been booming in Egypt in recent years, thanks to the immense support of the Egyptian government for startups and e-commerce businesses. This has resulted in a significant increase in the number of people purchasing consumer goods online, with an average spend of $79 per year. This trend is set to continue in the coming years, as more and more people become aware of the convenience and benefits of shopping online.

The E-commerce Industry in Egypt

The eCommerce market in Egypt is projected to grow by 19.43% (2022-2025) resulting in a market volume of US$13.18bn. The Egyptian market has the largest population of internet users in the MENA region. 

Egypt's Internet penetration is expected to reach 53.5%. The Egypt e-commerce market is expected to register a CAGR of 19.43% during the period 2022-2027. Egypt's e-commerce business is primarily driven by the growing number of Internet users and the increasing penetration of mobile devices. 

The Egyptian e-commerce landscape is evolving and is set to become more competitive in the coming years. In 2021 more than 20% of tech start-ups were active in the eCommerce industry, 80% of which came from Egypt, Saudi Arabia, and UAE. As a result, despite predictions about slowing digital commerce growth in Egypt, Jumia and Noon reported a 940% increase in online sales.

Challenges Facing E-commerce in Egypt

E-commerce is still in its infancy in Egypt, but the potential for growth is huge. The biggest challenges facing e-commerce businesses in Egypt are lack of infrastructure, legal and regulatory hurdles, and delivery challenges.

 Lack of infrastructure is a major problem, as many parts of the country do not have access to reliable internet or electricity. This makes it difficult for businesses to operate online and reach customers. Additionally, legal and regulatory hurdles make it difficult to set up and operate an e-commerce business in Egypt. 

There is no clear regulatory framework for e-commerce businesses, which makes it difficult to comply with laws and regulations. Delivery challenges are also a major issue, as many businesses are not able to deliver orders to customers in a timely or reliable manner. These challenges need to be addressed in order for e-commerce to reach its full potential in Egypt.

Future of E-commerce in Egypt

The future of e-commerce in Egypt looks bright. The country's e-commerce landscape is evolving and is set to become more competitive in the coming years. With more than 20% of tech start-ups active in 2021, eCommerce is expected to grow significantly.

 Mohamed Younes, the CEO of Khazenly, spoke to TechCabal about the future of e-commerce and logistics in Egypt and his company's new eCommerce platform. He said that "eCommerce will most likely grow on as the shoppers' habits will have been irreversibly shaped by the pandemic.

" The online sales in Egypt are expected to increase by 30% by the end of 2022, according to a report released by BOOST. This growth is attributed to the changing consumer behavior due to the pandemic. Understanding the latest market trends and future growth opportunities for the E-Commerce (Goods) industry in Egypt is essential for businesses operating in this space.

Growth Opportunities for E-commerce in Egypt

E-commerce in Egypt is growing rapidly and is expected to continue to grow in the coming years. This growth presents a great opportunity for businesses to enter the market and tap into the growing customer base.

 The potential for growth is significant, with the market projected to grow by 19.43% between 2022 and 2025. This presents a unique opportunity for businesses to get involved in the e-commerce market in Egypt and take advantage of the growing demand.

Regulations Governing E-commerce in Egypt

In Egypt, the government has established the Information Technology Industry Development Agency (ITIDA) to act as the main regulating body for E-commerce businesses. Companies seeking to engage in online transactions must adhere to certain regulations set forth by the agency, including those pertaining to electronic contracts and signatures. 

Most online transactions in Egypt fall into categories such as electronics, entertainment, airline tickets and fashion. Despite these efforts, E-commerce businesses in Egypt face numerous challenges, including a lack of clarity regarding taxation and registration requirements. 

The government is working with UNCTAD to boost E-commerce in the Arab-speaking world's most populous market, where most business is still conducted offline. Ensuring that Egypt taps its full potential for E-commerce growth will drive its digital economy and bring many benefits to businesses and consumers alike.