EXCLUSIVE INVESTIGATION: Naspers Accuses South African Regulators of Crushing Innovation with "Unnecessary" Red Tape
In a scathing attack, e-commerce giant Naspers has blasted South African regulators for stifling innovation with draconian regulations, calling on them to create a more enabling environment for digital platform businesses.
The report by Naspers and the Mapungubwe Institute for Strategic Reflection (Mistra) highlights the shocking lack of regulatory understanding, revealing that regulators are often "clueless" about the digital economy.
The report’s findings show that regulators are consistently failing to keep up with the growth of the digital sector, leading to a perfect storm of outdated laws, bureaucratic inefficiencies, and a lack of data-driven policy.
Moreover, the report exposes the brutal truth that regulators are using regulations as a tool to "protect their own interests" rather than serve the digital economy.
"Regulatory dexterity" is an oxymoron when it comes to South African regulators, the report shockingly reveals. "It’s time for regulators to wake up and smell the e-commerce," says the report.
The report also warns of the devastating consequences of "regulating too early or overreach[ing]", stating that this will "strangle" the growth of the digital economy, driving it further underground and fuelling criminal activity.
In a dramatic bid to shake regulators out of their complacency, the report demands a radical rethink of the regulatory framework, urging for the adoption of "regulatory sandboxes" to ease the burden on small businesses and start-ups.
"Small business is the lifeblood of South Africa’s economy," the report notes, "but without the regulatory sandbox, they will be strangled."
The report also slams the brakes on the regulator’s approach, saying it’s time for a more "data-driven policy" that takes into account the digital reality of the 21st century.
"E-commerce is not a dirty word," the report states. "In fact, it’s the key to driving economic growth and job creation."
READ MORE: South Africa’s regulators are struggling to keep up with the growth of the digital economy. Click here to find out how you can fight back against unnecessary red tape and support the growth of the digital economy in South Africa.
