Introduction

Information communication technology (ICT) over the last decade has caused dramatic changes
in global economies and societies. One key push factor behind this ICT revolution which has
caused drastic changes is the internet (Bonne and Hurtz, 2002). Every aspect of our lives have
been affected by ICT; easy to access information; communicate with people all over the globe;
and share articles, videos, photos, and all manner of media.

Businesses have not been left out on this revolution. Although the Internet initially being used
by the military, scientists and engineers is now widely accepted and has become part and parcel
of our everyday life. The traditional business Processes are gradually being faced out and the
impact of internet on the conduct of business is not just a nine day wonder (opoku, 2004).

There are some negative effects associated with the Internet but the benefits of the Internet to
Individuals, business, countries far outweighs the negatives. There are numerous advantages of
the Internet to businesses i.e. Reduction in cost of production, easy access to information,
improved business processes etc. the success of any business is its ability to utilize the internet to
its fullest potential. The Internet has eased the stress to conduct business in many countries, and
work with various partners such as procurements, suppliers, dealers, importers, exporters and
sales companies, and the coordination between these actors to be successful in the competitive
environment (Ahu et. al, 2010).

Africa as a developing continent is not exempted from this ICT revolution even though it lacks
the infrastructural, socio-economic and political framework for the development of E-business as
compared to the developed countries.

Globally Small and Medium-sized Enterprises (SMEs) have grown in importance during the last
couple of decades. The contributions of SMEs to the development of both national and
international growth of economy cannot be under stated. According to Hall (2002) SMEs
represents nearly 90% of total establishments across the world and plays a significant role in
creating employment opportunities.
Upon the enormous benefits of the internet to SMEs, SMEs in Africa are still crawling to tap into
the potential of the ICT revolution. This Paper seeks to shed more light on the challenges SMEs
in Africa face in adopting E-marketing and also the prospects of E-marketing to SMEs.

E-Business in Africa

The application of ICT in support of all business activities, operations and processes is termed as
E-Business (Wikipedia, 2016). E-business focus on the use of ICT to enable the external
activities and relationship of the business with individuals, groups and other business, Wikipedia
(2016), views E-business as a term used to describe businesses run on the Internet, or utilizing
Internet technologies to improve the productivity or profitability of a business. In a more general
sense, the term may be used to describe any form of business which utilizes a computer via the
Internet. E-business encompasses many aspects, i.e. e-commerce, e-marketing, e-banking,
e-logistics etc.

Bonne and Kurtz(2002) fines E-marketing as the marketing activities that connect buyers and
sellers electronically through interactive computer system, this definition was simplified by
Wikipedia (2016) as the marketing of products over the internet. E-marketing is one aspect of an
organizational function and a set of processes for creating, communicating and delivering value
to customers and for managing customer relationships in ways that benefit the organization and
its stakeholders with the Internet as its main driver.

Settles (2002) argue that E-marketing is not a replacement of the traditional or conventional
marketing activities such as advertising, direct mail and any other activity an organization does
to generate sales. He described E-marketing as a communication tool compliment to the
traditional marketing.

E-Marketing Tools

There are several E-marketing tools available to organizations with which they can execute their
E-marketing strategies. Some of these tools include;
 1. Online search engines: search engines like google and Bing display content and provide
most relevant information to users when they perform a search. These search engines
provide their results bases on key words. Organizations can use this search engines to
reach out to users.
2. Social Media; the world today is all about connectivity, social media is all about people
networking online and communicating online, sharing information. There are many social
media sites but the most popular are facebook, twitter, google+ and LinkedIn.
Organizations can create fan base and connect with their customers, general public and
create a relationship.
3. E-mail marketing: e-mail still remains the official channel of communication online
despite the numerous social media sites. This may change in some years to come as social
media becomes more important but presently email is the most effective, secured way of
keeping in touch.
4. Mobile Marketing: simply involves this use of mobile phones to communicate.
Organizations can use this to send advertisements directly to the mobile phones of
potential and actual customers via sms.
5. Website: the website is very key E-marketing tool where the business can be promoted at
the same time sell the firms products and services. The website is also another avenue
for customers to reach the organization for clarity, complaints and support.
6. Online Advertisement: just like the traditional advertisement organizations are always
seeking the attention of consumers to inform them about their products and services, the
internet is one place where firms can also advertise it. The advantage of online
advertisement is that with a click of bottom organizations can track the performance of its
adverts and feedback. Banner adverts, google ads and facebook ads are some of the
platforms organization can advertise on the internet.

Prospects of E-marketing in Africa

The future of E-marketing for SMEs in Africa is very bright. Although numerous problems
confronts SMEs using E-marketing, there exists prospects and opportunities for future growth
and development of E-marketing as a key driver of trade for businesses in Africa and across the
boundaries of Africa. These prospects as explained are;
1. Improved Access to Internet; over the last five years, there has been many Internet
service providers (ISP) entering the African market. All the mobile networks providers
also provide internet service. Most African countries can access the latest 4G LTE
Network which is the fastest internet network. There is internet service in almost every
African city. This makes is very easy for SMEs who want to explore E-marketing
because without Internet E-business cannot flourish. The availability and fastness of
internet service is really a conducive factor to push SMEs into tapping the advantages of
E-marketing.
2. Increased Mobil Telephony and Mobile Payment Platform; South African Giant
MTN operates in about 2/3 of the African continent, Orange, Glo, Airtel, Vodafon are all
mobile service providers in Africa. These Mobile service providers also provide mobile
payment systems to its customers. This enables customers to pay for goods and service,
buy top up vouchers, and pay for bills with their mobile phones. This is a huge boost for
SMEs in using E-marketing. Most of the Mobile service providers have business
solutions for SMEs which include advertising on its network to subscribers, the ability of
subscribers to pay for services with their mobile phone. SMEs only have to take
advantage of the services provided by the Mobil service providers.
3. Improved Computer literacy; Information Communication Technology has become a
compulsory subject in schools for the basic schools and senior High schools. West
African Examination Council (WAEC) conducts exams for Junior High and Senior High
schools of which ICT is part. This simply mean more African are gradually becoming
Technologically Savvy and are more comfortable with computers, Internet thus better
understand the operations of the internet. In the near future, many more Africans will be
very conversant with the Internet and the myth about the internet will be demystified.
This is a huge potential for SMEs to adopt E-marketing in its operations as many
Africans appreciate the internet and are more comfortable with the operations of the
internet.
4. Rapid Economic Development; According to Olakunori (2002), the economies of
developing nations are growing rapidly as a result of the efforts being made by their
various governments and the developmental agencies of the United Nation. To some
extent the purchasing power of people in developing countries have increased thus an
 expected increase in demand to satisfy higher needs. This will increase the business
atmosphere in the continent and will become more conducive. In the long run all this
mean well for E-marketing and SMEs who will take advantage of it will be very
successful. Countries like Kenya, Rwanda, South Africa, Tanzania and La Cote Dvoir
are examples of these African countries with rapid economic growth.
5. Growing Middle Class; A sizable number of consumers in Africa are becoming
Affluent. They have reasonable disposable incomes and purchasing power. In simple
terms a growing number of Africans can now afford luxuries and other products they
couldnt purchase in the past. The simply mean more business for SMEs and adopting E-
marketing will greatly assist SMEs to harness this opportunities.

Challenges of E-marketing in Africa

E-marketing is gradually being adopted by SMEs in Africa but the rate of growth is challenged
by a number of factors. Identifying some of these factors affecting the growth of E-marketing in
Africa is the purpose of this paper. Some of these challenges are;

1. Limited Resource of SMEs; According to Cavaye et. Al. (1999), Most SMEs are
concerned about the return on investments and for that matter not willing to make
substantial investments particularly when short term returns are not guaranted. Most of
the SMEs are not willing to spend on ICT when its impact on the business is not deeply
felt. Owners of the SMEs needs to be educated on the importance and long term benefits
of the Internet and the need for them to adopt E-marketing in their operations.
2. High Cost ICT; Although Availability of internet service has improved in Africa, the
cost of the internet service is extremely high. Most SMEs must pay high monthly
subscription for internet in addition to their phone bills which makes it outrageous for
their operations. Aside the high cost of internet, rampant break in connectivity is also a
hindrance to SMEs Adopting E-marketing.
3. Lack of online Payment System; Africa is still lacking behind to fully intergrate an
online payment system. Paypal does not operate in most African countries. Although
some forms of online payment are being introduced, its security and applicability cannot
be guaranteed. OECD(2004) Identifies uncertainty of payment methods, legal framework
and intellectual property coupled with challenges of management skills, technology
 capabilities, productivity and competitiveness hinders the smooth operation of online
payment system in Africa.
4. Limited qualified IT Personnel; qualified IT Personnel to develop E-marketing
strategies and manage E-marketing platforms are very scarce in Africa. SMEs cannot
afford the service of the Experts. This is reinforce the statement made by kapurubandare
(2006), that lack of knowledge on how to use the technology and perceived benefit is a
major that owners lack to take up to E-marketing.
5. Mistrust; The inability of buyers to touch, smell tangible goods before making an online
purchase can be a challenge to SMEs Africa. Buyers have fears theyll not receive
exactly what they purchased online, Issues of fraud and selling personal information to
third parties affect the adopting of E-marketing in Africa. Industry standards for e-
business vendors must be set to reassure customers by having liberal return policies.

Conclusion

It can be concluded that SMEs in Africa have huge potential adopting E-marketing in their
operations. The general recognition of the positive impact of e-business on: reduction of cost of
doing business, improved productivity and customer service, expansion of geographical reach
appear very attractive to SMEs

Although some challenges like lack of trust, security reasons and frequent breakdown of internet
connectivity, hardware, software and qualified personnel are still imported to implement and
support ICT solutions such as e-business, the cost are mostly high. Often the setup and recurring
cost of maintaining these systems are prohibitive. Perhaps more education and sensitization is
needed to align customers to E-business transactions.

Though E-marketing may be facing some challenges in Africa, it can be overcome through
greater collaboration between SMEs and IT firms with Government providing some support.
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