Africa`s Internet and telecoms consumer rights are largely disregarded, which could be limiting growth in the ICT sector, says Russell Southwood, CEO of Balancing Act.
Southwood released a report last week focusing on consumers` rights in the Internet and telecoms markets in 30 African countries. The report revealed a poor record of dialogue between consumers and operators regarding complaints and needs.
"By the most optimistic assessment, only 21 (40%) out of the 53 independent countries on the continent are likely to have some form of consumer legislation regarding consumers` rights in the next two to three years," says Southwood.
African consumer organisations are often fragmented, weak and relatively under-resourced as there are not enough well-informed and wealthy consumers to support them, notes Southwood.
"If information is central to making informed choices, regulators in Africa need to develop effective communications strategies to talk directly to consumers, in order to improve competition and growth."
Consumer feedback is extremely important for operators as it creates competition and growth within the ICT business sector, he adds.
Southwood points out that the South African Internet service provider market proves that where there is greater competition, there appears to be fewer complaints from consumers.
"If consumer organisations can demonstrate that they can make a difference in a service-aware sector like telecoms and the Internet, then it will encourage a wider level of consumer rights awareness in other African economies."
A key area of concern affecting Africa`s consumers is lack of price competition in most African mobile markets, due to monopolisation by a few operators, notes Southwood.
He adds that there is a lack of competition laws on the continent to ensure more players within the ICT market to prevent monopoly operators.
High prices in the mobile market are leading to poor consumer access, which is a priority for consumer development and market growth, he says.
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