Global E-Commerce: Africa - Social And Political Concerns

SOCIAL AND POLITICAL CONCERNS

The United Nations viewed the building of telecommunications infrastructure and tapping into the economic, educational, and communicative power of the Internet as key components for the economic development of poorer countries, including Africa. In fact, the UN saw the Internet as a tool for speeding development, skipping over many of the stages that characterized the development of countries in earlier years. UN Secretary-General Kofi Annan championed the building of what he called "digital bridges" to less developed countries. Especially in Africa, infrastructure problems are particularly pronounced—postal systems, roads, power supplies, and telephone systems are in extremely poor condition—and the effects on business are drastic. Without access to reliable information, the prices of ordinary consumer goods such as food go out of equilibrium. The UN and other concerned parties hoped that the Internet would provide the ability to access such information and result in tremendous incidental cost savings by, for instance, substituting e-mail for faxes and regular mail.

Meanwhile, business and government leaders generally agreed that failure to develop Internet capabilities and launch an e-business sector could push African development even further behind more developed regions. With international trade escalating and markets and economies integrating, to fail to get online is to risk cutting oneself off from the main avenue of economic and social development in the 21st century. Indeed, the international financial community positioned the Internet as a centerpiece of its development programs for the African continent. In 2000, the World Bank allocated $500 million to the International Finance Corp. for an initiative, in conjunction with the Japanese Internet group Softbank, to spur Internet technology and access in approximately 100 developing countries, including most of the African nations. The goal of the program, according to World Bank President James Wolfensohn, was to close the digital divide and "accelerate the inclusion of the developing countries in the information revolution. It will transfer technology from the rich countries to the developing world, fostering sustainable new local businesses which will promote prosperity and reduce poverty." African leaders remain cognizant of the gap between rich and poor countries in the world, and the general consensus holds that setting up a viable e-commerce infrastructure will at least assist in keeping that gap from widening at the expense of African nations. However, given the enormous structural difficulties facing African governments—in the form of severe international debt burdens, political instability, and other grave hardships—the bulk of the investment in Internet technology was expected to come from the private sector.

Delegates at the African Development Forum in 2000 debated the issue of technology, particularly Internet technology, in light of broader development schemes. While Internet development was a goal for all the continent's leaders, some were wary of placing too much emphasis on investment into information technology and telecommunications relative to other basic development needs, such as anti-poverty programs. Short-term realities, in other words, were a key caveat to the more ambitious schemes proposed by African and non-African developers. As Mali's president, Alpha Oumar Konare intoned, "[a]s an African, I am keeping a cool head—a computer can cost eight years' salary or send 20 children to school. If we don't have our own clear vision on information and communication technology, we will be disappointed."

The forum, however, spawned several major initiatives designed to utilize the Internet to tackle issues of specific concern to the African community. For instance, the Schoolnet Africa program, according to African Business, devised a working group devoted to wiring African schools for Internet access with the specific intention of communicating information centered on the prevention of HIV/AIDS, preserving cultural traditions, and fostering peace on the continent.

More basic consumer problems linger as well. Literacy, general education, and computer skill levels remain relatively low throughout Africa. Moreover, Africans on the whole are significantly less likely to use a credit card in transactions than are those in most developed regions. Since e-commerce basically eliminates cash transactions, the low credit card penetration is another inhibiting factor for African e-commerce, since it renders the building of a clientele that much more problematic. Thus, a major focus of foreign investment was on the wiring of medium and large businesses, as well as the more affluent sectors of consumer society, for Internet access. Not only would this create a foundation for new Internet-based business, it also would create a vibrant vehicle for international trade.