London-listed Infobank International has invested R60 million to set up Infobank Africa in what the company describes as a commitment to the African continent.
Local businessman Cyril Ramaphosa will join the local board as a non-executive director.
Graham Sadd, Infobank International CEO, says the company is committed to bridging the digital divide in Africa.
"To underscore our commitment to Africa and our belief in reflecting and respecting the culture of the country, we have invested to date more than R60 million in establishing a physical presence here rather than simply appointing a local distributor," says Sadd.
Infobank is adamant that a fresh approach to business-to-business (B2B) trading must take place if Africa`s lack of infrastructure is to be addressed.
"The past is foreign country and old world thinking is not appropriate to the new Africa," says Sadd.
Dr Douglas Boateng, Infobank Africa CEO, believes B2B commerce is the only way for Africa to bridge the divide between developed and emerging market economies.
"Today, B2B is real and is happening in Africa. In fact, SA has always been among the first to adopt technology, and is ahead of some countries with a gross domestic product twice its size," says Boateng.
Infobank Africa`s InTrade suite of B2B software drives ProcureTrade and Hub 21, two local electronic trading hubs.
Hot topics
The launch of Infobank today in Johannesburg took the form of a panel discussion with Infobank business partners voicing their opinions on what Africa needs in order to become an e-business force.
Chris Oanda, chairman of Afrinet in Kenya, said the continent needs African solutions to overcome its infrastructure problems.
"Too often we have had solutions developed for Europe and the Western World dumped in Africa. The vast differences in infrastructure levels and telecommunication development makes these solutions inappropriate at best," he said.
He pointed to the Internet kiosk as a possible solution for small and medium African businesses that cannot afford a computer in every office, let alone Internet connectivity.
Paul Edwards, Johnnic CEO, suggested the cellphone as a cheaper alternative connection to conduct transactions. He highlighted Johnnic subsidiary MTN`s African initiatives, saying the mobile service provider was well underway with providing connectivity for many African countries.
However, a West African representative said the prohibitive costs of cellphones and cellphone connection were major obstacles and alternatives had to be found.
Zeth Malele, Ariel Technologies MD, also cautioned African businesses not to jump into the B2B fray unless they could foresee immediate benefits to operating margins and client procurement.
Infobank Africa says it will soon announce an InTrade implementation with a local bank.
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