E-Commerce in Zambia
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| New age of trading |
A question rises in the mind as to whether it is actually possible to run a successful online business in an environment such as our own.
There are several factors that affect the way a business model is perceived in its beginning.Zambian consumers are sometimes reluctant to embrace new models so it takes effort to convince them even if it is a better or more innovative model. Apart from market size and potential demand, constraints such as legality, safety and recourse in the event of a misfortune still plague growth of the industry. Zambia is not unique and faces the very challenges other pioneering developing markets have faced.
A Continent Playing Catch Up
The world is flat, or at least that is what Thomas Friedman believes, he wrote a book to with the same title. The book itself had several things to say but it shows one truth, all one needs is an ability or skill and everything that can be outsourced or sold can be done packaged over the internet.The African continent has largely lagged behind in world trends mainly because of poverty and poor economies. However, increased political stability in many regions has given rise to fast growing economies and a resurgence of an entrepreneurial spirit that serves to enhance this new found growth.
If there’s one business model that seems to be generating the most success in Africa, it’s the “simple” model. Creating easy to crack business models that allow companies to make money early on while growing slowly and strategically gives startups a greater chance at success versus other models. Easy-to-execute ideas, especially online business/e-commerce models are allowing African entrepreneurs to dip their toes into the business world to get a feel for the water.
Those willing to put in the work and realize that success will rarely, if ever, come overnight will be best poised to grow in the African economy. They are the ones who will learn every aspect of their business and, when the time is right, will be able to hand tasks to the right team members as growth happens.
Today, Africa's larger and more stable economies are working hard to use the internet to improve commerce and governance. The internet has given rise to a new breed entrepreneurs. The past decade has seen the growth of internet penetration and infrastructural investments. With a largely youthful population which is exposed and influenced by global influences, demand for internet based services is growing with the population.
Online shopping is a global consumer trend and it is anticipated that affordable tablets and smartphones will accelerate the use of services in markets where the group had a presence.Most services in use in emerging internet markets on the continent are 'imported' from markets. These leave loopholes and challenges for their effective application in local markets. These include internationally accepted payment systems and trading platforms alike.
The Government And Its Role
The government has over the years helped improve the prospects and possibility of using the internet to ease activity over the internet and a great emphasis on improved Information Communication Technology (ICT) infrastructure. The ICT act of 2009 also saw the formation of the Zambia Information Communication Technologies Authority which acts as the overall guardian of all issues that deal with ICT in the country. The enactment of these laws and bodies has seen enhanced e-governance, and the birth of e-commerce. Larger sections of society are becoming more and more dependent on technology. With the brilliant Electronic Communications and Transactions (ECT) Act of 2009 the growth of the industry has been all but guaranteed by technocrats and policy makers. It remains for the general public to use these foundations to build what they will.Home Grown Solutions a Zambian Perspective
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| The future is just a click away |
Web development for local consumption is slowly growing. As equipment such as mobile phones and tablets become more common, access to the internet also increases, ZICTA shows that in 2012 internet penetration stood at 85%. According to http://blog.webcertain.com, Zambia stands in the world's top 10 countries in mobile internet traffic. Other statistics show that up to 10% of the population have access to the internet today, news sites and social networks have helped with the public's demand for internet services.
Despite healthy growth figures, the general population has remained largely unserviced in terms of e-commerce while e-government platforms are gaining popularity due to their intensive sensitization programs. Funding for technology based businesses is hard to come by because of it's risky nature. Such constraints as funding and public perception have created a difficult for companies or entrepreneurs that attempt such projects.
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| http://blog.webcertain.com/top-countries-and-regions-with-highest-mobile-share-of-web-traffic/07/09/2012 |
Trading Platforms
The cost of development and management of websites has proven prohibitive to most. Today, people have resorted to social networks to create online market places for many forms of and size.Developers have also created websites modeled after different e-commerce templates, they have had to spend large amounts on advertising and publicity. This advertising does not necessarily translate to sales made. They have helped make e-commerce more popular or more recognizable.
Payment Platforms
Mobile money
More reliable and efficient payment methods have been developed by service providers in the country, Mobile Money is a solution designed and built for Africa, it offers for security and safety in handling money, it also helps transactions quicker and more reliable.Zambia, with more than 5,000,000 mobile subscribers in the country and a constantly growing number of subscribers.
Cellphone Banking
Cellphone Banking allows users can bank on any of the major networks network with any Cellphone can use it. .Internet Banking
It allows for users to make payments online, this is perfect for online trading platforms and their users alike.Security and Safety
Secure and effective payment methods are the biggest hurdles online trading platforms have. A payment and delivery are tied together. A secured payment should guarantee a completed delivery.Recently ZICTA through an act of parliament concluded a Sim Card registration program which required all citizens using a mobile device to register it giving their full details. This will help in tracking down fraudulent transactions and perpetrators of Cyber Crime.
So to say the least, Zambia is as ready at she'll ever be in terms of legislation, technology and technical ability. The ball lies in the hands of the consumers.
