http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.89Change: -0.09
R/$ = 12.70Change: -0.19
Au 1088.13 $/ozChange: -7.36
Pt 988.00 $/ozChange: 3.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Jun 22, 2012

Opportunities, obstacles for small firms keen on entering Internet economy

Back
Africa|Boston Consulting Group|Consulting|India|Projects|Sustainable|Systems|Training|World Wide Worx MD Arthur Goldstuck|Africa|China|South Africa|Communication Technology|Equipment|Gross Domestic Product|Internet Access|Internet Economy|Internet Presence|Internet Research Company World|Manufacturing|Product|Services|Systems|Telecommunication Devices|Telecommunications|Andreas Lundmark|Infrastructure|Stella Ndebani|Broadband|Communication Technology
Africa|Consulting|Projects|Sustainable|Systems|Training||Africa||Equipment|Manufacturing|Services|Systems||Infrastructure||
africa-company|boston-consulting-group|consulting-company|india|projects|sustainable|systems-company|training|world-wide-worx-md-arthur-goldstuck|africa|china|south-africa|communication-technology-industry-term|equipment|gross-domestic-product|internet-access|internet-economy|internet-presence|internet-research-company-world|manufacturing|product|services|systems|telecommunication-devices|telecommunications|andreas-lundmark|infrastructure|stella-ndebani|broadband|communication-technology
© Reuse this



There is significant potential for South African small, medium-size and micro- enterprises (SMMEs) to harness the Internet to improve productivity and expand their markets. Coordinated efforts are needed, however, to drive Internet access across the country, information and communication technology (ICT) industry experts said at a recent conference on the commercial value of the Internet in South Africa.

The Internet can be a key driver of growth and this is particularly true for SMMEs, with additional socioeconomic benefits accruing owing to improved services and information available, said business advisory firm Boston Consulting Group principal Andreas Lundmark.

“It is important to provide access to the broad population, but the affordability of access and devices is a key driver,” he explained.

However, he emphasised that governments and companies should not build infrastructure in anticipation of an increasingly connected society, but that a parallel approach must be taken instead, which simultaneously considers the affordability of telecommunication devices and access to the Internet.

“India has focused on making devices affordable and, in this way, has boosted connected users, which can, in turn, stimulate its Internet economy. “Further, China and India have benefited from increasing connectivity, as China exports the equipment and devices used for telecommunications, while India has developed a vibrant outsourcing industry owing to the improved connectivity of its population,” highlighted Lundmark.

The Internet contributed R59-billion, or 2%, to South Africa’s gross domestic product in 2011, said Internet research company World Wide Worx MD Arthur Goldstuck.

Significantly, R29.2-billion was spent on Internet presence and access, compared with R13.5-billion spent on data infrastructure.

The Internet has had a significant impact on the emergence and sustainability of SMMEs and a proportional impact on economic growth and job creation, he highlighted.

Internet access can enable SMMEs to access sophisticated business tools, usually the preserve of large companies that can afford the systems, while the pay-as-you-grow nature of virtual and outsourced services, made possible by Internet access, improves the efficiency and productivity of SMMEs, says Lundmark.

Meanwhile, the value that users gain from Internet access in the G20 grouping of indus- trialised countries, which includes South Africa, is more than eight times the costs incurred to access the Internet.

“Internet access can increase an enterprise’s reach to draw customers, create a sustainable customer base for the company, ensure access to business tools and enable online trade and commerce.”

Government broadband projects are aimed at connecting cities and rural areas, and business and government need to promote eco- nomic growth by enabling users to take advantage of information, said Deputy Communications Minister Stella Ndebani.

“Online services and Internet access can help to unlock socio-economic development and can be a low-key driver of economic growth. Communications infrastructure forms part of a systematic approach to create an information society,” she said.

Uptake in especially rural areas remains slow, owing to costs and a lack of infrastructure, content and digital literacy, she added.

Gauteng’s ICT strategy is focused on increasing penetration of Internet access and digital skills-development opportunities, especially in the manufacturing space, said Gauteng member of the executive council for economic development Qedani Mahlangu.

This prompted the provincial government to convert the 2010 Smart City, developed for use during the Soccer World Cup, into an ICT training centre supported by universities in the province, she said.

“The biggest challenge we had identified was the lack of penetration. However, we must work with the private sector to enable an increased level of connectivity and ensure that government invests and participates in the important development of ICT infrastructure.”

Edited by: Martin Zhuwakinyu
Creamer Media Senior Deputy Editor
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Macro and Micro News
Updated 4 hours ago British multinational banking and financial services firm Barclays has partnered with the Bureau for Economic Research (BER) at Stellenbosch University to sponsor the monthly manufacturing economic indicator, the Purchasing Managers’ Index (PMI). The index, now known...
Updated 5 hours ago At least 71% of small and medium-sized enterprises (SMEs) consider load-shedding the biggest external threat to their businesses this year.
Updated 6 hours ago Western Cape winery Audacia on Thursday launched its sulphite-free white wine made using Honeybush and Rooibos chips, and it is developing a low-sugar, low-alcohol wine. Western Cape Economic Opportunities Minister Alan Winde noted that the products were a boost for...
More
 
 
Latest News
Updated 4 hours ago British multinational banking and financial services firm Barclays has partnered with the Bureau for Economic Research (BER) at Stellenbosch University to sponsor the monthly manufacturing economic indicator, the Purchasing Managers’ Index (PMI). The index, now known...
Updated 4 hours ago Norwegian shipping liner Wallenius Wilhelmsen Logistics (WWL) has reached a settlement agreement with the Competition Commission for contravening the Competition Act, agreeing to pay an administrative penalty of R95.7-million. This settlement followed the...
Updated 4 hours ago As African economies advance their “aggressive” expansion, boosting demand for financial services products such as pensions, life insurance products and retail investment funds and drawing more consumers into the formal financial sector, traditional assets under...
More
 
 
Recent Research Reports
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
Real Economy Insight: Automotive 2015 (PDF Report)
Creamer Media’s Real Economy Year Book comprises separate reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, gold, iron-ore and platinum sectors.
Real Economy Insight: Water 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Construction 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Electricity 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Road and Rail 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
 
 
 
 
 
This Week's Magazine
Meyerton-based steel tank manufacturer Structa Technology is currently rolling out a water infrastructure build programme that supports local municipalities, water utilities, schools, hospitals and clinics.
Alternative funding models could be expected to begin coming to the fore in South Africa’s renewable-energy sector as the market becomes more competitive and domestic development finance institutions (DFIs) begin scaling back their direct involvement in projects....
DIMITRI MARKOULIDES An innovation champion must involve employees in innovation projects and keep them updated to enable them to support and drive innovation and create the future of the business
An innovation champion course that trains executives to manage innovation in their organisations aims to help companies grow revenue streams and tap new markets, says business change management consultancy BMGI South Africa innovation practice lead Dimitri...
Future digital workplaces will require employees to continuously learn new “literacies”, including new media, information and technical skills, to help their company thrive and spur personal growth. Information technology (IT) research firm Gartner, thus, suggests...
Only 25% of large construction projects surveyed in KPMG’s Global Construction Project Owner’s Survey, released in June, were concluded on time and within budget over the last three years. “Every project owner wants predictability when it comes to large projects, and...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96