On eCommerce In South Africa And Beyond

I recently had a chance to catch up with another global eCommerce enthusiast: Hendrik Laubscher works for PriceCheck, a price comparison site in South Africa owned by MIH Internet Africa. He and I sat down for a coffee to talk all things developing eCommerce markets. A few things that came out of our conversation:

In South Africa, payments and broadband connectivity remain hurdles to eCommerce adoption. South Africa, the continent’s largest eCommerce market, remains at a relatively early stage, with several inhibitors preventing the market from truly flourishing.  Although credit and debit card usage is growing, overall penetration remains low, even in comparison to other large emerging markets. PayPal offerings have been a challenge, as well — currency issues and restrictions that required users to be registered FNB online banking customers prevented many from taking advantage of this payment method.  Additionally, the country’s low overall Internet penetration — in particular, broadband penetration — also presents hurdles. The CEO of Woolworths in South Africa recently said that faster, cheaper broadband was essential for eCommerce to flourish, but estimated that this scenario remained “about four years off.”

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