The E-commerce Forum South Africa (EFSA) is intensifying efforts to improve consumer trust, strengthen digital skills and shape the imminent national e-commerce policy, as online retail continues its rapid expansion across SA.
Speaking to ITWeb TV, EFSA CEO Alastair Tempest outlined the organisation's priorities over the next two years, saying SA’s e-commerce market has expanded rapidly over the past six years.
According to Tempest, EFSA believes sustaining that momentum will require stronger collaboration between industry and government, greater investment in skills development, and measures that improve confidence in buying and selling online.
EFSA is among the key stakeholders providing industry input into government's draft national e-commerce policy.
The strategy, being developed by the Department of Trade, Industry and Competition, aims to establish a coordinated framework for growing SA’s digital commerce ecosystem.
Tempest said government has engaged industry stakeholders throughout the process, but he would like to see the strategy finalised soonest.
"There is a draft e-commerce strategy at the Department of Trade, Industry and Competition. It proposes a number of public-private initiatives, one of which is the trust mark. We'd really like to see that strategy completed because it will help provide greater direction for the sector.
“The prolonged delays of the e-commerce strategy risk slowing the industry's development, and strengthen the case for a more coordinated approach to e-commerce policy across government.”
Established at the end of 2015, EFSA was created at a time when online shopping was still viewed with scepticism by consumers and businesses.
Tempest said the organisation's initial mission was straightforward: build trust in an industry that many South Africans regarded as risky.
"We were set up nearly 10 years ago. The main thing then was trust because people really didn't trust e-commerce. It wasn't just consumers who were uncertain; businesses also lacked confidence, and without businesses you don't have e-commerce."
While consumer confidence has improved significantly over the past decade, Tempest said trust remains central to the sector's continued success.
"Trust was the key then, and trust is still the key today. Without trust, we're dead. Everything we do ultimately comes back to ensuring consumers and businesses have confidence in buying and selling online."
Creating
One of EFSA's biggest projects is the development of a national e-commerce trust mark to help consumers identify legitimate online retailers that meet recognised standards.
The initiative was initially supported through funding from the US Agency for International Development (USAID), which enabled the forum to begin developing the software needed for the programme.
However, the funding was withdrawn earlier this year, leaving the project on hold while EFSA seeks alternative financial support.
"We received funding approval from USAID to develop the trust mark because we needed money for the software and then for the marketing. Sadly, along came Mr Trump and that was the end of that. We are still looking for funding because we believe a recognised trust mark would make a real difference."
When he came into power for the second time, president Donald Trump’s administration paused all USAID’s international spending, dismantled significant portions of the agency and terminated thousands of projects worldwide.
Tempest said several large organisations have expressed support for improving trust within SA’s digital economy, but securing financial backing has remained difficult.
Closing skills gaps
Beyond regulation, EFSA is placing increasing emphasis on developing the digital skills needed to support the next phase of SA’s e-commerce growth.
Tempest said many of the online shopping complaints received by the consumer ombuds stem from operational shortcomings, such as poor stock management, inaccurate demand forecasting and weak customer service, rather than problems with technology itself.
He attributes many of these challenges to skills shortages. Among the skills areas requiring greater attention are data analytics, artificial intelligence, machine learning, inventory management and digital risk management.
"We really need to look at training because we simply don't have enough people with these skills. I'd love the forum to do much more training, but we don't have the resources to do everything that needs to be done. Anyone who wants to join us and support that effort is very welcome."
Tempest believes better training would not only improve customer experiences but also help South African businesses compete more effectively with international online retailers.
Driving exports
Another growing priority for EFSA is helping South African businesses use e-commerce to reach international markets.
Tempest said shifting global trade patterns and geopolitical uncertainty are forcing exporters to diversify beyond traditional markets.
He believes digital commerce provides South African companies with an opportunity to expand across Africa and into new international markets without the significant costs traditionally associated with overseas expansion.
At the same time, he expressed concern that SA no longer has sufficient trade support structures to assist businesses looking to export.
He noted that the country has lost many of its overseas trade advisers, making it more difficult for companies to identify opportunities abroad.
"The world has changed dramatically over the past year-and-a-half. South Africa needs to look beyond its traditional export markets and use e-commerce to reach new ones. Businesses need support to understand where those opportunities exist and how they can compete internationally."
Looking ahead, Tempest said EFSA's work continues to revolve around strengthening every part of South Africa's e-commerce ecosystem.
While online retail has grown rapidly over the past decade, he believes sustainable growth will depend on maintaining consumer trust, supporting better regulation and helping local businesses compete both domestically and internationally.
"The more people buy online, the better it is for the sector and for our members. But growth cannot happen on its own. We need stronger trust, better skills and the right partnerships if South Africa's e-commerce ecosystem is going to reach its full potential."
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