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Johannesburg - A study that touches on the weak contribution of the internet to SA’s economy has Fin24 users talking on where the problems are.
South Africa is falling behind highly developed and even other developing countries when it comes to the contribution of the internet to its gross domestic product (GDP), according to a study released by the Internet Society this week.
The study highlights how internet businesses contribution to gross domestic product (GDP) in the most advanced economies in the world in 2010 was 4.1% and that this was expected to grow to 5.3% by 2016.
For all developing markets this figure was 3.6% and is expected to grow to 4.9% by 2016, according to the Internet Society.
“By comparison, the average contribution for South Africa, for instance, was 1.9% in 2010, 2% in 2011 and is expected to be 2.5% by 2016,” reads the Internet Society study.
READ MORE: Internet only contributes 2% to SA economy
Fin24 then asked readers about South Africa should be doing to boost its internet economy in view of its weak digital business prospects.
Fin24 user Tshepo Motsi proposes the following.
“SA could have an initial set focus on what they can use as a starting point when considering the growth of the internet economy. For example; a uniquely South African product that has a high demand worldwide could use the internet as its main platform of business, not excluding conventional means of business of course. This way the first and most convenient place to find anything made in SA would be the internet. This single focus will, possibly, bring up outliers as it gains momentum, which will in turn create more focus areas. I think as a nation we are trying to do everything at once so as to catch up to the rest of the world, which in truth has and will never work. Let’s create our own pace as a developing country and create our own presence,” wrote Motsi.
Meanwhile, Fin24 user Alex had the following to say.
“The main problem we have is Telkom. We are way behind on line quality and speed... . We're offered a fast line with a 10Mbps speed. Now Telkom is starting to offer up to 40Mbps in some areas: uncapped and shaped. In Japan, a person can get a 60Mbps line,” wrote Alex.
Fin24 user Crystal Core said more needs to be done to boost SA’s internet infrastructure.
“You are not likely to have any an award winning TV producers coming from a country that doesn't have TV... it's a bit like that with available bandwidth and the global internet economy. Decades of bad self-serving policy and prohibitive legislation to keep a state owned monopoly in control of our destiny, that in addition to prohibitive taxes to online services and a dysfunctional postal service has made ALL the people of South Africa poorer (except a few fat politicians) and left us behind in the dust of Kenya, where many South African online businesses now host their services because it is more reliable and better priced. So tragic to in a country where unemployment is so high, this could have been an out of so many young people to have careers in the online world. We will be playing catch up for the mistakes made by the unapologetic ANC Government for decades to come,” wrote Crystal Core.
Fin24 user Paul Michael Mitchell had the following to say about why SA is lagging behind in the internet economy stakes.
“Business via the internet is lagging here for two main reasons. Firstly, the internet has global reach, but red tape and exchange controls make it difficult for small businesses to trade. Secondly, much of the business conducted, requires the shipment of a product from point A to B. Shipping costs put South Africans right out of the market,” he wrote.
Disclaimer: All letters and comments published in Fin24 have been independently written by members of the Fin24 community. The views are therefore their own and do not necessarily represent those of Fin24.
