DISCUSSION PAPER ON ELECTRONIC COMMERCE OUT BY JUNE 1999

A discussion paper on electronic commerce in South Africa will be made available by June this year, according to Department of Communications Director-General Andile Ngcaba.

A discussion paper is the first step towards the drafting of a White Paper that sets out policy guidelines. Government has to create an enabling legal and regulatory environment for open and fair participation in electronic commerce and support technological developments that will lead to the establishment of global connectivity. "Government also has to promote education to increase information literacy among all citizens in order to allow operators and consumers to reap the full benefits of electronic commerce.," he says.

The Department of Communications is currently in the process of establishing a policy framework for electronic commerce for South Africa. In reviewing and developing policies regarding electronic commerce, government together with all stakeholders will has embarked on a process that will result in the legislation being effected by around mid-2000.

"We expect the policy process will take around two years to complete," Ngcaba says. This period will be divided into the areas of:

The concept of electronic commerce encompasses an almost limitless set of topics, he says, and in conducting the review and analysis for South Africa's situation, specific attention has been given to the issues of:

"Critical factors in this work include building consumer and business trust, developing clear ground rules for the digital market place, enhancing access to digital infrastructure and maximising the potential of electronic commerce through widespread use," he says.

In building consumer and business trust, all parties need to be assured that the networks they use are secure and reliable and that their transactions are safe and that they can verify important information.

"Similarly, the development and growth of electronic commerce requires a predictable, fair, transparent and explicit legal and regulatory framework for transactions. Some laws and regulations may need to be revised to accommodate electronic commerce," he says.

The success of electronic commerce will depend on broad and affordable access to the information infrastructure, and the full economic potential of electronic commerce will only be realised through the widespread use by businesses, consumers and institutions. "To achieve this, a clear understanding of the needs of enterprises is needed, and that is why our research into the subject will include consultations with all stakeholders," he says.

Already more than 19 government departments or institutions have been consulted and form part of the working committees that are conducting the research on e-commerce issues.

"The working groups will begin operating this month and they will produce a discussion paper that will provide in-depth background information, status review, and policy options on electronic commerce as it affects South Africa. The Department of Communications has also initiated some discussions with the private sector represented by the Electronic Commerce Association of South Africa (ECASA)," Ngcaba says.

The release of the discussion paper in June will be preceded by a national conference for all stakeholders will be organised in May/June 1999. This will set a platform for the Green Paper consultative process.

Contact: Mandy Jean Woods
Phone: 082 653 4211 or (021) 462-1632
Email: mandy@doc.org.za