The Republic of South Africa: The Slow Growth of a Promising Future
Shahram Amiri
Abstract
Creating an efficient telecommunications infrastructure is the first step in South Africa’s journey to creating a successful e-commerce market. However, barriers still exist which have prevented South Africa from making this step. Factors like the high levels of government control, lack of usability of existing networks, high transaction fees, a lack of true online payment options, high overall telecommunications costs, and serious bandwidth issues have prevented South Africa’s e-commerce market from becoming a viable tool. While some South Africans do have access to viable online options, including e-trading, the country’s infrastructure as a whole is outdated. Even e-trading that occurs in South Africa is years behind the United States, both in tools used and the fact that information is not yet traded freely and openly in South Africa. Surprisingly, it was South Africa’s economic recession that most bolstered Information and Communication Technology (ICT) growth. However, future growth has been held back from the previously mentioned factors and South Africa must find its way around these issues. Only then will South Africa be able to achieve the economic growth it needs, and become a player in the global market.
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