Fiber ready???

Q2 of 2009 should see the landing of the much anticipated seacom fiber-optic cable. The first of at least 5 similar cables expected to land on the E.A coast. Much is expected from the fiber-optic connectivity but my take is that much more preparation is required in order to benefit from it right from day 1.

For starters, a minimal amount of local content is available thus far perhaps with the exception of blogs currently doing the rounds and of course facebook status updates and chats which are quite popular. That aside, only a handful of fully functional corporate websites currently exist.

The argument though is that, the absence of fully functional/interactive local content online stems from the low band-with so a broadband connectivity will sort that all out.

Errrr, not quite!

The broadband will solve the speed issue but far much more is required if e-commerce initiatives are to truly take-off. Other wise, we’ll youtube and download free stuff till kingdom come and only consume without really contributing to and enhancing our economic well being.

One of the critical components is the role of financial intermediaries in e-commerce. As it stands, credit/debits cards have a very low penetration so we’ve got to figure out how to conduct online trades. So far, the banks are not playing ball. Of course some guys (e.g. nakumatt) have taken things into their own hands and issued their own visa cards perhaps in anticipation of what’s to come.
The other option for plugging the medium of exchange void is a paypal – like format. i.e. we just agree that we’ll use platform ‘x’ as our online money medium.

This is why zap, m-pesa n everyone wants in! The banks are dead asleep, the fiber is here and a solution/platform for e-commerce is needed and needed fast.

The financial platform may have an easier solution than others. Logistics may be a trickier mine field. Here’s why, our postal system like RVR is really another museum piece enjoying little-if any public faith. In-fact, many are beginning to request for their bills to be emailed instead of hard copies delivered - just think how much paper we can save!

However, we don’t have to use the traditional mailing/delivery system. A network of pick up locations may do the job just fine so you may buy your stuff online and have it sent to your local depot and voila!

For foreign sourced products, things may be just a little trickier. KRA, customs, e-bay crooks etc.

Are we really ready for this??? well, lets get it first, hiyo ingine itajitatua! (the rest will sort itself out)