Women can drive Southeast Asia’s e-commerce boom with improved access and financial support, IFC report says

Women account for half the region’s e-commerce vendors but tend to run smaller-scale businesses in high-competition, low-value sectors

The coronavirus pandemic has accelerated the transition to online platforms but has also disproportionately hurt female-owned businesses

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Lack of financing to grow their businesses online is another challenge facing the region’s female entrepreneurs. Photo: SCMP Pictures

Published: 5:15pm, 27 May 2021Updated: 10:08pm, 27 May 2021

Southeast Asia’s e-commerce market could grow by more than US$280 billion between 2025 and 2030 but women must be empowered with greater access to online platforms as well as improved training and financial support if their businesses are to recover from the effects of the coronavirus pandemic, according to a report published on Thursday by the International Finance Corporation (IFC).

Online shopping in the region has increased in recent years due to improved internet access, affordable mobile devices and the growing number of online platforms financed by local, regional and international venture capital and private equity firms.

The region’s internet economy is forecast to be worth US$309 billion by 2025, nearly triple its US$105 billion value last year, according to a joint report by Google, Temasek and Bain & Co.

E-commerce plays a major role in supporting that growth – the sector is expected to contribute US$172 billion by 2025, increasing from US$62 billion last year.

The IFC, which is a member of the World Bank Group, concluded women last year contributed US$26.35 billion to the region’s e-commerce sector, less than the US$35.65 billion contributed by men.

This is despite the fact women account for half the active e-commerce vendors in Southeast Asia, as they more often run smaller-scale businesses in high-competition, low-value sectors, the IFC report said.

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