WEBVTT - E-commerce growth in SA 

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<v Speaker 1>E commerce one of the big stories of the last

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<v Speaker 1>ten years, and new research this week suggesting a market

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<v Speaker 1>worth around nine hundred billion rand is lying untapped in

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<v Speaker 1>our townships. It could be tapped by e commerce, essentially

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<v Speaker 1>suggesting that a little bit of focused investment would unlock

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<v Speaker 1>this economy. Machetta Rakaba is a senior researcher for political

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<v Speaker 1>economy at the Mapuankubwa Institute for Strategic Reflection. They did

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<v Speaker 1>this survey or this report rather, it was compiled for

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<v Speaker 1>the e Commerce Forum South Africa. Majetta, good evening. You

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<v Speaker 1>suggest our e commerce market's actually grown a lot more

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<v Speaker 1>quickly than some other markets. I mean it has been

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<v Speaker 1>dramatic change quite.

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<v Speaker 2>Quickly here, listeners. Yeah, of course, I mean post COVID

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<v Speaker 2>nineteen what you've seen the e commerce growth in the

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<v Speaker 2>country have been more than double tchep. But what actually

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<v Speaker 2>suggesting there is that given the level of maturity the

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<v Speaker 2>e commerce majority system that Salfrey guy has managed to

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<v Speaker 2>build ahead of the countries like you Brazils and Indias

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<v Speaker 2>of this world, which are quite bigger economists than ours,

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<v Speaker 2>we think that we're actually losing on the dividends or

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<v Speaker 2>that comes with that ecosystem that we have already managed

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<v Speaker 2>to better. So that's what they actually they reflect is

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<v Speaker 2>sugistic here that we could set into some of those

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<v Speaker 2>opportunities in the in the in the townships, but also

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<v Speaker 2>making sure that in some of the ecummos spends that

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<v Speaker 2>South African are taking outside of the country into the

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<v Speaker 2>so that we'll bring it back into their culture and

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<v Speaker 2>in that way we'll be able to grow the current

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<v Speaker 2>ten percent e commence retail things to total sils to

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<v Speaker 2>maybe about twenty so that it's more empowered them with

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<v Speaker 2>the rest of the world.

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<v Speaker 1>What do we change, I mean, how does the industry

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<v Speaker 1>change to sort of you know, tap that.

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<v Speaker 2>So we we we're looking at a number of interventions

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<v Speaker 2>which could be either regulated or policy interventions. So at

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<v Speaker 2>first we think that there's quite a number of you

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<v Speaker 2>there's a lot of regulator fragmentations and that kind of

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<v Speaker 2>holding back the growth that they equal the EQUMMACE system

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<v Speaker 2>can go. And we think by coordinating and harnessing those regulations,

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<v Speaker 2>that's one area where we think we think growth will come.

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<v Speaker 2>We also think we also need some kind of coordination

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<v Speaker 2>at the level of the authorities, especially because the regulations

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<v Speaker 2>that are governing ecummas are quite extensive and they're not

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<v Speaker 2>sitting within one custodiam, so you need almost like somebody

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<v Speaker 2>or an authority which can coordinate those regulations and so

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<v Speaker 2>that whatever change is required to be made can be

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<v Speaker 2>made as thick as possible. And we're also suggesting that

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<v Speaker 2>there could be some send send boxes what we call

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<v Speaker 2>regulator send boxes, so these are this is a system

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<v Speaker 2>that enables the e commerce players to experiment with new

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<v Speaker 2>forms of businesses, new models of businesses still a certainly

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<v Speaker 2>and combined by the strict regulations so that they can

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<v Speaker 2>still do businesses without a fatly comply with the regulation

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<v Speaker 2>for the operating within the defend boxes and as and

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<v Speaker 2>when we find the right ways to change and we

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<v Speaker 2>can change the regulation. Lastly, it's just to focus on

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<v Speaker 2>some of the legislations like your like your Electronics Act

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<v Speaker 2>and Communications Act, the way we think that the issues

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<v Speaker 2>around for vereinity data for a varielity that we can change.

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<v Speaker 2>Lastly is just about how we protect some of the

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<v Speaker 2>South African ECONMOCE players against some of the global dominant.

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<v Speaker 1>So I mean we we all know the dominant players

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<v Speaker 1>and Amazon dot dot today has been live for a

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<v Speaker 1>little while now, but we also have a dominant South

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<v Speaker 1>African player. I mean, do we need to sort of

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<v Speaker 1>open up the open up the South African space a

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<v Speaker 1>little bit?

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<v Speaker 2>Yeah, and and greatly. That's what they'll put emphasized is

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<v Speaker 2>that we were not leveraging on the critical significant ecmments

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<v Speaker 2>as to to create to create market access, especially for

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<v Speaker 2>the for the small players. And the small players can

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<v Speaker 2>range from those ecummance players themselves, but also they're small

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<v Speaker 2>businesses in the in the in the in the in

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<v Speaker 2>the rural areas and the township. So what we're saying

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<v Speaker 2>is that we've got some of these dominant players, which

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<v Speaker 2>for the benefit of the country, they've already built this ecosystem,

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<v Speaker 2>but enabled us to then bring on board some of

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<v Speaker 2>the small businesses in the township, in the rural areas

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<v Speaker 2>because they've already built the ecosystem that will facilitate transportation

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<v Speaker 2>last multi divided, So leverage on that, but any same time,

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<v Speaker 2>making sure that you make spaces for some of the

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<v Speaker 2>smaller economs.

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<v Speaker 1>Do you think anyone in government is listening and there's

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<v Speaker 1>so much talk about regulation at the moment. I'm sorry

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<v Speaker 1>to say this, but I'm not convinced that the Department

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<v Speaker 1>of Trade, Industry and Competition is really listening. I mean

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<v Speaker 1>it's not just the field you're talking about, it seems

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<v Speaker 1>to be everywhere.

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<v Speaker 2>Well, I think, well to be fair government as seems

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<v Speaker 2>to a certain extent, it's listening. They are listening because

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<v Speaker 2>if you think two or three years ago, the Computing

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<v Speaker 2>Commission launched that online Market Inquiry on Commerce which they

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<v Speaker 2>have made quite a number of recommendations and some of

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<v Speaker 2>them are be there to be implemented and some of

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<v Speaker 2>them will orderdy see them. For example, if you go

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<v Speaker 2>online to sexual product, you'll see a South African flag

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<v Speaker 2>if it's from very South African. That is also one

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<v Speaker 2>of the recommendations coming out of that market inquired by

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<v Speaker 2>the Commission Commission. We're hoping that through this study it

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<v Speaker 2>will influence some of the thinking within within the government.

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<v Speaker 2>And during the launch there was some of the government

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<v Speaker 2>representatives who were there and they made some commitment that

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<v Speaker 2>there's some will be able to fall up with some

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<v Speaker 2>of the recommendations.

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<v Speaker 1>Majeta, thank you. Macheta Rakabe is a senior researcher for

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<v Speaker 1>political economy at the Mapuan Kobe Institute for Strategic reflect,