Namibian customers and businesses face challenges from outdated and insecure payment systems, says industrialisation and trade minister Lucia Iipumbu.
Speaking during the Africa Trade Development Forum in Kigali, Rwanda, this week, Iipumbu said this hinders the adoption of digitalisation among small and medium enterprises (SMEs) in the country.
According to Iipumbu, while several firms have launched online shopping ventures, they often face payment system challenges.
"Concerns have been raised by several domestic buyers on the reliability of electronic payment systems and secure internet servers," said Iipumbu.
Moreover, the digital trade space faces challenges due outdated policies and regulations, she added.
"The policy and regulatory space for digital trade faces challenges, due to omissions or outdated policies targeting ICT development and e-commerce adoption," said Iipumbu.
According to Iipumbu, many SMEs lack knowledge of the regulatory frameworks that govern digital trade, which poses another challenge.
"In Namibia, we believe that the legal and regulatory frameworks are the most critical areas for digital trade development, mainly due to SMEs' poor awareness of the regulatory environment surrounding the subject matter," said Iipumbu.
Digitalisation will promote cross-border and domestic trade for both goods and services, she added.
"The economic benefits of digital trade are not only limited to external trade but are also drivers for spurring domestic markets."
In 2019, Namibia undertook an e-commerce readiness study which showed that 60% of respondents sold goods/services online.
"While e-commerce holds the potential for the country's growth and development, the overall ecosystem to support digital trade remains at a nascent stage," said Iipumbu.
According to Iipumbu, logistics and access to finance are another hindering block for businesses, especially those in rural areas.
"Adopting a strong set of digital trade related regulations will build confidence and trust among the population, which will consider the internet a safe channel to conduct business," said Iipumbu.
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Currently Namibia is at an advanced stage of finalising the cybercrime bill, data protection bill and access to information bill.
The country has also partially implemented the Electronic Transactions Act.
"The absence of such bills can undermine progress in digital trade, as these are the basic laws needed for e-commerce to develop harmoniously and safely," added Iipumbu.
