Issued by: Department of Communications
Pretoria, November 19 2000
Government will take an important step towards the final formulation of a national e-commerce policy when Minister of Communications, Dr Ivy Matsepe-Casaburri, releases the Green Paper on E-Commerce for South Africa.
The Green Paper is targeted at information and communication technology (ICT) experts as well as individuals and enterprises using e-commerce. It addresses some of the challenges regarding e-commerce development and implementation. It is divided into four main themes:
Specific issues addressed by the Green Paper include:
Th South African information technology (IT) market was worth R32 billion in 1999, with an average growth of 17% predicted for each of the next three years. While the local IT market comprises only 0.7% of the global market, as far as individual country markets are concerned, South Africa ranks 20th largest in the world.
A total of 700 000 personal computers (PCs) were purchased in SA in 1999, bringing the PC base to 2.4 million. Of these, 560 000 were connected to the Internet and the number of individual Internet subscribers rose to more than two million. The rapid growth in Internet subscriptions has resulted in South Africa being ranked 16th globally in terms of host computers.
The most significant Internet-related development in recent years has been online business, commonly known as e-commerce.
South Africa's strategic positioning with regard to e-commerce should be viewed in the context of political, social, cultural, economic and technological conditions. The policy framework should promote business growth and development (through innovation and competition), create jobs, expand international trade and create new markets, attract foreign and local investment, and improve the quality of life of all South Africans - exploiting e-commerce to facilitate equitable socio-economic development.
An e-commerce policy should aim to be technology-neutral, allowing it to encompass future technologies with minimum amendment. This means deliberations should embrace trends to mobile business (m-commerce) rather than being PC-centric. Other policy-formulation considerations include:
The Green Paper on e-commerce policy revolves around a single desire: to get as many people as possible logged on to the Internet and conducting at least some of their business on it. All the other considerations such as establishing legal frameworks and building trust in e-commerce, consumer protection and maximising the benefits of online trading stem from the central premise that the Internet must reach the furthest reaches of the country. Access to the Internet is as important as access to basic telecommunications network facilities if end users and small businesses are to take advantage of Internet-based e-commerce opportunities.
South African SMMEs appear to be slow in embracing the Internet and the benefits of an increased marketplace. A recent study commissioned by the Department of Labour noted that, of the 600 000 registered SMMEs in the country, only 16 percent are conducting e-commerce while another 31% say they never will. The SMME sector contributes more than 40% of Gross Domestic Product. At present, just less than 72% of all private sector enterprises in South Africa employ four people or less.
For background information and to schedule interviews on this subject, please contact Jim Freeman at (082) 437 5153 or on email: linxcom@email.com
Contact: Mandy Jean Woods
Phone: (012) 427-8000
Fax: (012) 427-8026
Cell: 082 653 4211
Email: mandy@doc.pwv.gov.za