It is now possible to buy or sell anything online in South Africa except, in the meantime cigarettes and booze, as the country’s lockdown gradually enters Alert Level 4. By the terms of the new regulations published on Thursday, the range of items e-commerce sites in South Africa may sell are no longer placed under any limit. However, owners of the sites must comply entirely with the terms of the new regulations to prevent the spread of the coronavirus. The new directions takes effect immediately.
“In order to limit the social and economic hardship caused by the pandemic on local industries and enable consumer choice to support local producers, retailers must give prominence to those goods which are manufactured in the Republic of South Africa,” the new rules read.
Here Is What You Need To Know
- At the outset of South Africa’s coronavirus outbreak, the country quickly shut down all its online shops, one of the few countries in the world to do so. Under the order shutting down ecommerce, only essential goods were free to continue to be sold over the internet. The rule was however not exclusive to them as bricks-and-mortar retailers suffered the same fate.
- However, President Cyril Ramaphosa has called up all the restrictions on both retail and e-commerce as the country gets ready for Alert Level 4, way ahead of a majority of South Africans who would only begin to move to Level 3 at the end of May.
“We are very pleased to see that the government has decided to open up e-commerce at Level 4 fully, thank you,” said Kim Reid, the CEO of Takealot. “We have been at the forefront of the lobbying process as we believe that it is the safest way to transact at this time. We hope that it is not to late for many small businesses to make up for lost opportunities and save jobs.”
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In Summary, What The New Rules Say About How Online Shops Can Sell Over The Internet In South Africa
- Under the new set of rules, South African online shoppers can now shop over a limitless range of items, from fancy bags to clothing, but not however cigarettes and booze.
- The rule applies to all South Africans, even those who will not move to Level 3 as a result of high incidence of COVID-19 within their locations. The rule will also continue to apply despite any movement back and forth the levels, but certainly not above Level 4.
- However, online shops must work hard to display only South African made goods as the new regulations warn against promotion of foreign goods which may be contaminated with the coronavirus.
- Again, under the new set of rules, online shops must “provide for as many payment options as possible for consumers, that are based on reducing risks of transmission, and enabling poorer consumers to access delivery services.”
- The new rules also mandate online retailers to“provide written guidelines for customers on how to safely disinfect their goods before use.”
- Receivers of any ware purchased online are also encouraged to sanitise everything they receive. They are — “and all residents within the immediate vicinity” — are now also required to wear face masks when receiving goods from couriers.
“e-Commerce can be a critical enabler to opening the economy through contactless transactions, which can reduce the movement of consumers, and the density of shoppers in retail spaces,” the section reads. “Further it can accelerate innovation, support local manufacturing and increase access by the informal market and poorer South Africans,” minister of trade, industry and competition Ebrahim Patel said, concerning the benefits of online sales during the pandemic.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer.