While a large number of detractors believe it will be virtually impossible to move the `unbanked` in rural Africa to the latest chip-based technology in the short-term - and certainly not in one quantum leap - necessity might make this move both acceptable and viable.
"Necessity, the adage goes, is the mother of all invention. In this case, however, there is no need for invention. The solution to the African unbanked has already been invented - the smart card," said Eric Proudfoot, NamITech Financial Services.
"It is estimated that at least 1 billion smart cards will be in use by the end of 2004. The vast numbers of unbanked Africans and the lack of security for large numbers of people forced to carry cash, make the latest chip technology, especially the electronic purse, a viable option.
"While this advanced technology seems at odds with an under-developed and unsophisticated African economy - and a largely illiterate and enumerate population - its ease-of-use makes adoption a possibility. One possible stumbling block, of course," said Proudfoot, "is that merchants and banks in Africa are going to have to install the appropriate infrastructure, including POS terminals with smart card readers. Having said this, it must be remembered that they don`t have a sophisticated infrastructure right now and there is not a very high use of the traditional magstripe cards. So there will be less replacing of systems, which, in a manner, means earlier investments are not going to be lost. That is a benefit in itself."
He said Africa is already starting to take to wireless communications, including cellular phones.
"Cellphones are becoming more ubiquitous. In fact, cellphone usage in SA, for instance, is beyond the wildest expectations of First World countries. Attesting to this fact are Vodacom and MTN, which, in just a few years, have emerged as giants on the local economic landscape."
There are currently 15 million cellphone users in Africa. This is expected to rise to an estimated 100 million subscribers by 2005, with 90% being in the prepaid market. With this in mind, there is no reason why Africa cannot embrace other smart card technologies.
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NamITech Ltd is the secure technology provider within the established Nampak group of companies, focusing on a number of key market areas to provide leading-edge technology solutions.
NamITech Financial Services offers a broad range of secure products and solutions to the financial sector, including banks, insurance companies and stockbrokers. It is uniquely positioned to offer its banking customers seamless end-to-end card solutions through extensive experience in the banking environment, and its ability to source manufactured microprocessor smart cards from its sister company, ICT.
At the heart of the company is the provision of secure end-to-end business solutions and the development and implementation of value-added applications stemming from the intelligent use of smart cards and the latest technology. NamITech`s core areas of expertise are secure card technology, payment solutions and enterprise security solutions. Trust is embedded in all its business solutions and NamITech brings accountability to the converging world of electronic transacting and commerce.
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