Organised business in South Africa has taken a leap into cyberspace through a partnership with media, entertainment and telecommunications giant Johnnic to launch the country`s biggest Internet marketplace.
Johnnic announced the launch of the hub, called TradeWorld, at the weekend. The SA Chamber of Business, representing 40 000 companies, has selected TradeWorld to deliver full e-commerce solutions for local and international trade to its members.
Sacob Chief Executive Kevin Wakeford said Sacob`s goal was to make e-commerce available to all SA companies, and not just the major corporates. "It`s export or die for SA business," he said.
Johnnic group Chief Executive Paul Edwards welcomed the partnership with Sacob. "It`s critical that Africa, and SA in particular, operates on the global e-commerce playing field, if we are to remain globally competitive," he said.
TradeWorld MD Sean Emery revealed at the weekend that TradeWorld - which has been in development by Johnnic`s B2B company I-Net Bridge and trading solutions company Rainbow Software International (RSI) for the past year - was already in the top 5% of the world`s Internet trading hubs, according to global research.
"Last month TradeWorld processed more than 41 000 orders worth some R500-million. US research house Forrester reported in May than only 5% of the world`s trading hubs were processing more than 10 000 orders a month, which catapults TradeWorld into the top league," he said.
Emery said TradeWorld was a local e-commerce solution aimed at providing local and international online trading services to small, medium and large companies in SA. Wakeford said this had been a critical aspect of Sacob`s decision to partner TradeWorld. "Many of the e-commerce solutions on offer today are simply American products transplanted into our market. This makes them expensive, elitist products accessible only to the top corporates."
Sacob`s goal was to make e-commerce affordable to all SA companies, by making the individual chambers facilitors of electronic business in their regions. Other leading business and government groups also announced their support for TradeWorld at the weekend:
Affinity Logic, the Datatec/Wooltru joint venture e-commerce company, has partnered TradeWorld to provide international trade tools and applications to its customers. These customers are the retailers in the group and their suppliers. Affinity Logic has cemented the partnership by taking an indirect minority shareholding in TradeWorld.
The Department of Trade and Industries is supporting TradeWorld as these types initiatives, which contributes to building export capabilities and trade efficiency in South Africa are ensuring that South African companies become globally competitiveUS-based TradeCompass, the world leader in international trade e-commerce facilitation, has selected TradeWorld as its strategic African partner. Through this link, TradeWorld will provide the SA trade community with access to 300 000 international customers.
Background
The e-commerce engine for TradeWorld has been in development for the past 12 months by Johnnic`s B2B company I-Net-Bridge and trading solutions company Rainbow Software International (RSI). RSI is a significant shareholder in TradeWorld, and Affinity Logic in turn holds shares in RSI.
Johnnic has now consolidated this technology with its existing "bricks and mortar" trading hubs, Trade Information Services and Source Link International, into the new company, TradeWorld.
Johnnic, through its Internet division, Johnnic e-Ventures, and I-Net Bridge, has control of TradeWorld. I-Net Bridge is part of the Johnnic e-Ventures stable.
TradeWorld Managing Director Sean Emery said this was the first online marketplace in SA that offered both local and international end-to-end trading solutions.
"We are also the first marketplace to offer e-commerce tools to both major corporates and small and medium companies."
Emery said there were already hundreds of local trading hubs around the world. But most of these did little more than streamline the process of procurement. "TradeWorld by comparison offers full trading solutions, from news and intelligence about trading to business leads, facilitation services and logistics management," said Emery.
"Plus is it a South African product, designed for South African business, although, with the TradeCompass partnership, it offers international reach."
Emery said TradeWorld`s key advantage was that it was launching with critical mass already in place. "We`re not building a marketplace - we are already a marketplace, with ambitious plans to grow."
Neil Jacobsohn, CEO of Johnnic e-Ventures, said the e-commerce arena was marred by hype. "But TradeWorld is real. It`s not a piece of software or a purchasing programme, but is the actual market space within which e-commerce is already taking place in SA. This is why the TradeWorld shareholders have invested tens of millions of rand to build this venture."
Detailed product catalogues of nearly 5 000 subscriber companies, and profiles on 18 500, were already in the TradeWorld system. These businesses were already receiving and responding to trade leads.
Emery said TradeWorld`s goal was to use online technology to cut to cost of trading by up to half. "On average, 7% of every export transaction is spent on facilitation. SA`s exports currently run to R12-billion a month. If we can cut the costs by three or more percent, it will save the country tens of millions of rand every month.
Affinity Logic CEO Richard van Rensburg said TradeWorld matched Affinity logic`s strategy of providing a range of e-commerce tools to the desktops of it`s suppliers. "TradeWorld will provide an international link in our supply chain solutions for the retailers and their suppliers," he said.
Sacob Chief Executive Kevin Wakeford said the progress TradeWorld had made in lowering e-commerce barriers made it a logical partner. "Sacob intends aggressively rolling out e-commerce solutions to its members through this partnership. The solutions will be sold and marketed through the chambers, providing them with additional revenue streams and the members with a cost effective means of entering the e-commerce marketplace."
I-Net Bridge Deputy MD Sandy Purbrick said TradeWorld was a critical part of the I-Net range of business E-Hub services. "I-Net`s goal is to provide single source solutions for e-commerce to business South Africa. TradeWorld extends our reach into the strategic transaction market, whereby we combine content with business process," he said.
Emery said TradeWorld was the logical place for South African suppliers to post their product catalogues for online trade. "We already have a wide range of trade services in place." These included:
Local and international trade leads;
Building and adding product catalogues;
Access to trade finance, insurance and logistics;
Trading news and market information.
Logistics management tools.
Emery said TradeWorld was now concluding partnerships with literally dozens of suppliers in the trading market. "Over the next few weeks key industry partners will be announced, and their services integrated into the TradeWorld e-market, prior to an official launch in September.
"Companies that would like to participate in the launch can register at www.tradeworld.net and they will be mailed trial user identity passwords for the public launch."
Sean Emery, Managing Director, TradeWorld - tel 083-274-5607
Neil Jacobsohn, CEO, Johnnic e-Ventures - tel 083-2500-721
Sandy Purbrick, Deputy MD, I-Net Bridge, tel 083-602-0808
Paul Edwards, Group CEO, Johnnic Communications - tel 083-709-7007
Kevin Wakeford CEO SACOB 083 252 4978
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