Buysouthafricaonline.com, a new Internet service provider that facilitates export opportunities for local manufacturers, says it is showing remarkable progress, with a R1.8 million award from the World Bank and negotiations underway for replication of the service in South America.
Buysouthafricaonline.com announced this week that it was one of 34 companies worldwide to be awarded a grant in the World Bank`s 2002 Development Marketplace Innovation Competition. The R1.8 million grant will be made available over the next 12 months, to assist with marketing and staff training.
Buysouthafricaonline.com is the brainchild of former leather goods maker Jaco Pelser, who reports that he is "overwhelmed" by the success of the venture so far. Pelser says the companies have been wooed by several development companies, with negotiations already also underway to replicate the site in South America.
It is only two years since Pelser walked out of his previous business and started his early research on a system that could take South African SMMEs to the export market. The result, buysouthafricaonline.com, will go live with 20 to 30 manufacturing retailers at the end of this month. Pelser says those setting up shop via buysouthafricaonline.com include Carol Boyes; DA Muller; Cape Cobra, which supplies ostrich leather goods; and Cyber Cellar, which exports South African wines.
With an initial focus on niche markets such as the African American and expatriate markets in North America and Europe, buysouthafricaonline.com will facilitate every aspect of exporting goods for its customers, leaving manufacturers free to do what they do best - produce goods.
Describing itself as SA`s first truly integrated Web enablement and fulfilment solution, buysouthafricaonline.com helps industries to create a Web presence, facilitates Internet transactions and arranges documentation, packaging and delivery, among other things. Pelser says customers have the advantage of an all-in cost calculator that includes the price of the product, the preferred transport option and local duties and taxes in local currency. A production scheduler will monitor the order levels against the production capacity for each business and inform customers of the exact lead-time before the product is shipped.
A subscriber does not need ongoing Internet or e-mail access to have an online presence. Once the Web site has been built, subscribers can arrange to have any communications or orders relayed automatically via fax or SMS, allowing producers on the wrong side of the digital divide as good a shot at international markets as any high-tech small business.
Buysouthafricaonline.com has funding by Trade and Investment South Africa, a Department of Trade and Industry company aimed at boosting South African business in global markets, with initial funding provided by the provincial government in the Western Cape, the Anglogold Corporation and private funding.
The buysouthafricaonline shareholders are made up of a mix of NGOs and private investors. Triple Trust Investments is the biggest shareholder, owning 41% for the benefit of the Triple Trust Organisation. Business Advice International, a joint venture between Jaco Pelser and the Children`s Campaign Trust, holds 34% of the shares. The NGOs hold 57% of the equity. A range of private investors hold the rest, with a block of shares retained for future investors.
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