Removing hurdles that hurt growth of e-commerce

E-commerce in the light of globalisation demands sharing of data across boundaries. FILE PHOTO | NMG

There are an estimated 3.5 billion internet users worldwide with 39 percent in Africa. In Africa, Nigeria has 111.6 million internet users, Egypt 49.23 million and Kenya 51.1 million.

The global average internet speed stands at 6.1 Mbps. The web traffic is largely generated through smartphones perhaps due to infrastructure development and convenience.

Millennial internet users spend an average of 185 minutes on mobile internet services every day. This demonstrates the potential in the sector whether email, social networking, online search, online videos, online shopping or instant messaging.

There is no doubt that internet connectivity has resulted to new business models and tremendously changed existing businesses, spurring growth and improving overall value creation.

There is also no doubt that innovative use of technology translates to business transformation providing solutions for enterprises to achieve their desired outcomes.

Research has shown that e-commerce has what it takes to help deliver development agenda creating new economic and social landscapes. It is now widely accepted by policy makers that e-commerce is at the centre of economic transformation.

However, there are many drivers and barriers to the adoption of e-commerce. There is need to have integrated and capable infrastructural architecture to allow quality interfacing, e-readiness at national and county levels as well as digital literacy. This should be coupled with data standards because as government transfer data into information and ultimately knowledge for sustainable development, there is a possibility for misinterpretation and misuse. Appropriate security models should be implemented to ensure user confidence and healthy outcomes.

E-commerce in the light of globalisation demands sharing of data across boundaries. It should be done in a controlled and structured manner to protect sensitive information related to citizens. Decisions must also be done around ownership and possession. The right of ownership to data should be clarified and protocols developed on when to transfer data. Beyond this, execution complexities especially in government sector are other critical issues that should be addressed as well as bureaucratic procedures, lack of flexibility in policies and procedures, poor and non-evidence based planning.

All sector players should gather around the same table to ensure common goals and objectives, collective e-commerce thoughts aiming at eliminating confusion at county and national levels. The two levels should consider making e-commerce an integral part of overall socio-economic development to improve service delivery, increase responsiveness to citizens needs and create positive transformation in the society especially with regard to creating employment for the youth.

Dr Kiambati is a senior lecturer, Karatina University.

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