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Electronic Commerce and Small and Medium sized Enterprises in Africa.doc.docVIP

Electronic Commerce and Small and Medium sized Enterprises in Africa.doc.doc

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Electronic Commerce and Small and Medium sized Enterprises in Africa.doc

AFRICAN DEVELOPMENT FORUM ‘99 The challenge to Africa of globalization and the Information Age OCTOBER 24 – 28, 1999 What voluntary business associations should do to promote Electronic Commerce in Africa( INTRODUCTION Driven by the Internet, electronic commerce is becoming a fast-moving sector in the world. Its impact is being felt in the developed countries notably in the USA, Europe and Japan. The race is on however, at global level. Those countries which will adapt themselves most readily to this revolution will have the potential to promote steady and sustainable growth, to increase competitiveness, to open new job opportunities and to promote the quality of life of their citizens. Once again, there is fear that Africa will be excluded from the “digital revolution”. That the effect of poverty, compounded by badly designed policies restricting competition in the telecommunications sector, will in effect widen the gap between the rich and poor countries instead of narrowing them. And yet, the adoption of electronic commerce represents an opportunity for SMEs in Africa to compensate for their inherent weaknesses in areas such as: access to new markets and gathering and disseminating information on a worldwide scale. There is therefore a strong rationale for governments and other bodies to address the issues that promote and assist SMEs to embrace and use electronic commerce. This paper presents areas of priorities that voluntary business associations or chambers of commerce should focus on to help SMEs to “take-up” e-commerce. It is organized along three thematic areas: promotion of e-commerce and the “digital revolution”; Issues related to the regulatory and the legal framework ;and building the information infrastructure for e-commerce. E-commerce is certainly a new area for business associations and chambers of commerce in Africa. However, today going global is no more a choice. It is an inevitable necessity. Business associations and chambers of

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