http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 16.28Change: -0.08
R/$ = 14.23Change: 0.07
Au 1292.80 $/ozChange: 28.53
Pt 1076.00 $/ozChange: 30.00
 
 
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 About 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|Business|Consulting|Efficiency|India|Projects|Sustainable|Systems|Technology|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|Business|Consulting|Efficiency|Projects|Sustainable|Systems|Technology|Training||Africa||Equipment|Manufacturing|Services|Systems||Infrastructure||
africa-company|boston-consulting-group|business|consulting-company|efficiency|india|projects|sustainable|systems-company|technology|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



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

To subscribe email subscriptions@creamermedia.co.za or click here
To advertise email advertising@creamermedia.co.za or click here
 
Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other ICT News
DOROS HADJIZENONOS The 700-series devices provide network security monitoring, app control, URL filtering, VPN security, antivirus, antispam, antibot, and advanced intrusion prevention and detection functionality
Cybersecurity multinational Check Point has released its latest 700-series cybersecurity systems for small businesses, which draw on its international threat intelligence to provide up-to-date cybersecurity, says Check Point South Africa country manager Doros...
TREVOR COETZEE An integrated cybersecurity system allows for the automated remediation and correlation of low-risk security events
The increasingly open nature of corporate networks and the commensurate increase in cyberattack vectors require improved collaboration and threat intelligence sharing, as well as broad, automated security systems that can winkle out and neutralise smaller threats and...
The memorandum of understanding (MoU) for institutionalising cooperation in radio astronomy between South Africa and the other Square Kilometre Array (SKA) African partner countries was approved at the recent Third SKA African Partner Countries Ministerial Meeting,...
More
 
 
Latest News
Environmental Affairs Minister Edna Molewa
Updated 5 hours ago Cabinet has extended the contract of Department of Environmental Affairs (DEA) director-general Nosipho Ngcaba and approved the appointment of Limpho Makotoko as the new DEA COO.     “Under the leadership of Ngcaba, the DEA has consistently received clean and...
Mzwandile Masina
Updated 6 hours ago The Department of Trade and Industry (DTI) has invited companies to participate in a trade and investment mission to Ghana and Nigeria from August 8 to 12.   Companies in the agriculture and agroprocessing sectors, built environment professionals, automotive and...
Updated 6 hours ago Cabinet has approved the Industrial Policy Action Plan (Ipap) 2016/17 to 2018/19, which seeks to achieve a higher-impact industrial policy in difficult economic circumstances, including the difficulties faced by the domestic steel industry and the drought which has...
More
 
 
Recent Research Reports
Automotive 2016: A review of South Africa's automotive sector (PDF Report)
Creamer Media’s Automotive 2016 Report provides an overview of South Africa’s automotive industry over the past 12 months. The report provides insight into local demand and production, vehicle imports and exports, investment and competitiveness in the sector, as well...
Energy Roundup – April 2016 (PDF Report)
The April 2016 roundup covers activities across South Africa for March 2016 and includes details of a North Gauteng High Court Judge’s dismissal of a court application to postpone the 9.4% electricity tariff increase, which the National Energy Regulator of South...
Electricity 2016: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2016 report provides an overview of South Africa’s electricity sector, focusing on State-owned power utility Eskom and independent power producers, electricity planning, transmission, distribution and the theft thereof, besides other issues.
Energy Roundup – March 2016 (PDF Report)
The March 2016 roundup covers activities across South Africa for February 2016 and includes details of the Department of Energy’s plans to announce the preferred bidders for the first tranche of the coal independent power producer procurement programme; the Council...
Steel 2016: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2016 Report examines South Africa’s steel industry over the past 12 months. The report provides insight into the global steel market and and particularly into South South Africa’s steel sector, including production and consumption, main...
Construction 2016: A review of South Africa's construction industry (PDF Report)
Creamer Media’s Construction 2016 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; key participants; local demand; geographic diversification; corporate activity; black economic...
 
 
 
 
 
This Week's Magazine
The two spent-fuel pools at Eskom’s 1 800 MW Koeberg nuclear power station, in the Western Cape, will be full by 2018, increasing the urgency on the State-owned utility to begin pursuing alternative storage options. Koeberg has, over the past 32 years, accumulated a...
South Africa lacks the skills necessary to implement the government’s plan to build 9.6 GWe of new nuclear energy capacity, warns nuclear-qualified Quality Strategies International CEO David Crawford. “Apart from the concern about the affordability of the programme,...
DOROS HADJIZENONOS The 700-series devices provide network security monitoring, app control, URL filtering, VPN security, antivirus, antispam, antibot, and advanced intrusion prevention and detection functionality
Cybersecurity multinational Check Point has released its latest 700-series cybersecurity systems for small businesses, which draw on its international threat intelligence to provide up-to-date cybersecurity, says Check Point South Africa country manager Doros...
Daimler Trucks and Buses Southern Africa (DTBSA) saw a marked slip in new-vehicle sales in 2015 compared with 2014, with sales dropping from 5 897 units to 5 300 units. The decline came as the South African new truck and bus market declined from 31 558 units in 2014...
Group of 20 (G-20) economies threatened to penalise havens that don’t share information on their banking clients after the leak of the Panama Papers provoked a global uproar over tax evasion. The G-20 will consider “defensive measures” against financial centers 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 $149 Close
Subscribe Now for $149