| South Africa's First National Bank (FNB) and global | | | | increased 150-fold since 2008. |
| internet payment system PayPal announced their new | | | | The undersea cable has also had a positive effect on |
| partnership at the end of March. This means that | | | | internet pricing in South Africa. Before 2009 Telkom |
| South African internet shoppers can now carry out | | | | held the ISP monopoly in the country. Now, although |
| transactions to and from their FNB accounts, and sell | | | | Telkom still holds the market share, there are a range |
| and purchase services and goods with 190 markets | | | | of competitors, including Neotel, Vodacom and MWeb. |
| worldwide swiftly and safely. The move highlights | | | | With such competition, operators are now working on |
| ecommerce opportunities for foreign markets at a | | | | providing users with the best rates. MWeb and Vox |
| time when, thanks to the World Cup, South Africa is in | | | | Telecom have just announced plans to provide |
| the spotlight, and reflects the general progress being | | | | customers with an uncapped ADSL broadband tariff, |
| made in SA to improve and encourage international | | | | and Vodacom offer a 50% off deal for their business |
| ecommerce. | | | | customers. In a country where, for many, internet has |
| Previously, South Africa has been considered an | | | | been inaccessible due to expensive rates, these price |
| almost 'no-go' area for foreign businesses wanting to | | | | drops should open up access for a much wider |
| carry out ecommerce. A low internet population, poor | | | | demographic of the country. |
| connectivity, and issues with fraud and payment | | | | The outlook is promising for ecommerce in South |
| problems being a few of the hurdles they would have | | | | Africa. Statistics show that there was a 7% increase |
| been expected to jump. However, the internet is | | | | in internet retailing in 2009, and with higher rates of |
| moving forward in SA, and this is opening up windows | | | | employment and disposable incomes, people will be |
| of opportunity for businesses worldwide. | | | | looking for quicker and convenient ways to shop. |
| The 17,000 km SEACOM undersea cable system was | | | | Previously, trust in online shopping has been low, |
| launched in July 2009, and is the first in a series of | | | | however, with some of South Africa's leading retailers |
| undersea cable systems expected to vastly improve | | | | such as Woolworths and Pick 'n' Pay opening online |
| South Africa and neighbouring countries international | | | | stores, trust is expected to increase. The Mastercard |
| internet connectivity by linking them to various regions | | | | Worldwide Online Shopping Survey 2010 showed only |
| across the world. The cable has increased bandwidth | | | | 5% of respondents use only offline channels to |
| enormously, and the hope is that it will support South | | | | browse and purchase goods. With these statistics in |
| Africa's economic and technological growth. Already, | | | | mind, South Africa could hold a lot of potential for UK |
| the effects the cable has had on internet usage in | | | | businesses. Research into South African ecommerce |
| South Africa are evident. Between 2002 and 2007, | | | | and internet usage should be carried out in order to |
| internet population growth never rose above 8% year | | | | develop a country-specific SEO and SEM strategy. By |
| on year. In 2009, there was a reported 15% growth | | | | doing this, businesses can not only expand into a |
| from 2008, from 4.6 million to 5.3 million, and by 2011 the | | | | market which holds great potential, but also assist in |
| internet population is expected to be at 11 million. Plans | | | | the economic and technological advancement of |
| for further cables are underway, and if all are carried | | | | 2010's most celebrated country. |
| out, the international internet capacity of SA will have | | | | |