Smartphones are the device of choice for ecommerce in South Africa

08 April 2019

As the online retail market continues to expand in South Africa, customers are reporting that smartphones are their devices of choice when shopping online, more so that PCs and tablets. These numbers are detailed in analysis of the global consumer market conducted by global professional services firm PwC.

South Africa’s consumer retail sector has been among those that have remained the most stable throughout a relatively turbulent period for the country’s economy in recent years. The sector has grown at a steady rate of 5%, driven by growth in the operations of some of its largest retail companies.

Nevertheless, much like the rest of the economy, the retail sector is being heavily affected by the advent of digital tools, leading to a thriving ecommerce segment and significant transformations in the traditional retail segment. The latter includes the ‘digital retail’ experience, which offers customers data-driven insights in real time.

Outside of the retail sector, South Africans appear to have moved on to the digital sphere to conduct a range of other economic activity, including monetary transactions. According to Anton Hugo, who is the Leader of the Retail & Consumer Segment for PwC Africa, South Africans are rapidly becoming tech savvy.Smartphones are the device of choice for ecommerce in South Africa

Hugo describes that the devices used to conduct online transactions have undergone a transformation. Where consumers traditionally used a laptop or a PC for online purchases, 18% of the respondents to PwC’s survey in South Africa use smartphones for online shopping, which only 14% use a PC and 11% use a tablet.

More than 63% of the respondents, meanwhile, revealed that they had used their smartphone to clear bills and invoices over the last year, while 67% had used the devices to transfer money. South African consumers lead the global average in the usage of smartphones for the above functions.

“Not only are consumers the strongest link in the global economic chain, but PwC's Global Consumer Insights Survey shows the technological tools available to them have put them in a position to demand a tailored, seamless and multichannel shopping and social-media-powered experience. Retailers can achieve this by using a blend of both physical and digital approaches. The result for companies will be a greater return on experience with the customer and gaining a competitive advantage,” said Hugo.

Partner at PwC Rashaad Fortune commented on South Africa’s digital maturity, saying “In SA, having access to a computer with Internet access has been a challenge for many people, but with smartphones becoming cheaper and readily available, people have bypassed PCs and gone straight to mobile.”


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Applications are open for IBM and YIEDI's Techscale programme in South Africa

27 March 2019

Global IT services giant IBM is increasing its involvement in South Africa’s rapidly expanding tech environment, through the launch of its Techscale programme in the country. The six-month training programme will be implemented by the Youth Innovation Entrepreneurship Design Institute (YIEDI).

YIEDI is based in Johannesburg, and has been offering a wide variety of consulting services across South Africa since its establishment in 2014. Its service offerings include e-learning and education development, as well as support with entrepreneurship and innovation development.

The firm is focused on helping new businesses, and offers incubation management, strategy consulting, design thinking and creativity training to this end. YIEDI is also a level 1 B-BBEE contributor, which makes it the ideal firm to administer the Techscale programme designed by IBM.

The programme is killing two birds with one stone by offering support to tech firms working in a number of specified domains, under the condition that the firms are black owned. The candidate firms must have significant operations in the tech space, defined by a turnover in excess of R500, 000.

Applications are open for IBM and YIEDI's Techscale programme in South Africa

If the above turnover is not matched, then candidates must have secured contracts worth the same amount. Firms must also have been in existence for more than a year. In addition, the firms must specifically operate in the financial services, healthcare and telecom sectors to get support.

IBM’s support will come in the form of access to its vast network of global leaders in the tech industry, who will be in the position to advise budding firms in South Africa with navigating the increasingly challenging digital and regulatory environments. Themes explored under the programme will include business development and investor readiness.

The programme is particularly relevant in the current economic environment across South Africa. The country has turned to innovation and growth in the tech space in order to rescue its economy from the turbulence that was brought about by the dip in oil and commodity prices in recent years.

Small and medium enterprises in particular are looking to integrate new technology within their operations in order to accelerate growth and scale in their businesses. Applications to IBM’s Techscale programme are now open, and will close on the 10th of April before the results are announced at the end of the same month.