Internet usage in South Africa has increased dramatically since it first became publicly available in 1990. Current statistics show a 120% increase in Internet usage in South Africa over the last two years, with over 3.8 million unique browsers. This shows favourable growth, with an increase from 5.5% of the population using the Internet in 2002 to 10.3% in 2006.
This growth in Internet usage has had a favourable effect on the growth of e-commerce. World Wide Worx director Arthur Goldstuck states that South Africans spent an estimated R929 million on online purchases in 2007, 35% up on the previous year. He predicts that by the end of 2008, online sales will have continued to grow by yet another 35%.
Although more people are using the Internet, there are still obstacles blocking access and availability, and therefore the further growth of e-commerce. Most of the population does not have Internet access or a credit card with which to conduct transactions online. Others, who do have the means, are concerned with security risks online, such as credit card fraud and identity theft.
There is, however, now a prepaid solution thanks to the recent launch of Ukash. As part of a joint strategic venture with Blue Label Telecoms, Ukash is the first company to offer prepaid online shopping in South Africa, and is set to provide the greater population with a means to shop online.
According to CEO Mark Chirnside, the aim of Ukash is to increase the influence of e-commerce in South Africa. "By exposing the larger part of the population to shopping online, we hope to bring both commercial and social benefits, all the while increasing the chances of socio-economic progress," he says.
Ukash, however, does not only benefit the spending population. Online merchants will now be able to target a larger customer base, and expand their businesses into previously untapped markets. The growth of e-commerce in South Africa depends on innovation, so with alternative developments like these, there is no reason why the growth of local e-commerce should be hindered any longer!
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