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South Africa's Digital Planet: A Hybrid e-commerce model

COMING SOON: THE INTERNET IN EGYPT AND A SURVEY OF SOUTH AFRICAN TELECENTRES
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NEWS UPDATE 53 - SOUTH AFRICA'S DIGITAL PLANET: A HYBRID E-COMMERCE MODEL

E-commerce was meant to completely rewrite the business model. Bricks and
mortar suppliers were meant to become a thing of the past. Now e-commerce is
struggling to reach the second generation, "hybrids" is the buzz word: sites
that put together more than one approach to e-commerce. South Africa's
Digital Planet combines a combines a community-based site (for IT
professionals) with e-commerce and auctions. Its Marketing Manager Debbie
Whittaker describes how it's working.

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- > CORRECTIONS: ISSUE 48 ON CAPE TOWN: THERE ARE 400-500 IT COMPANIES IN
CAPE TOWN. CHARLES LANDRY'S BOOK IS CALLED CREATIVE CITIES.

URGENT ANNOUNCEMENT: Under the category of "teleservices", the accounting
group which is getting its bookkeeping data entry from Uganda ( Under the
infoDev program) has asked Perwit International to identify a team of "Tax
Researchers". The company is proposing to start with one and then expand as
appropriate. The job consists of receiving specific tax related questions
from the professional accountants affiliated with the firm across Canada.
The Tax Researcher then accesses a complete ( and complex), on-line
proprietary database which is supposed to contain all the accumulated
knowledge on the subject. Using this resource, the Tax Researcher tries to
find all the relevant responses ( using such tools as keyword searches) and
after organizing them feeds them back, either directly to the professional
who asked the question or to a Tax Specialist which interprets the
information and makes a recommendation.

The ideal candidate is somebody who has enough background in tax accounting
to understand the questions ( or at least the keywords) and the answers. In
addition, the ideal candidate should have a good access to the net and be
comfortable searching databases.The candidate is expected to work from home,
from anywhere in Africa. The ideal candidate is not expected to have any
particular knowledge of Canadian Tax laws and regulations. The company will
provide the necessary training to the selected candidate(s).Over time, it is
expected that a small team of Tax researchers will be required by this one
firm and that many more will find employment with other North American
firms.Interested individuals should contact [email protected] and include
a biography.

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MAIN STORY HEADLINE
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Digital Planet is positioned as South Africa's I. Home Online. Founded by
Mark Levy, Neil Watson and Ian Sherman, http://www.digitalplanet.co.za went
live in August 1999. Digital Planet (DP) is a unique IT website that
combines the 3Cs, namely content, community and commerce. Our market is the
SA IT professional and business decision-maker and our focus is to offer a
community-centric service based on building loyal relationships through
interaction and e-procurement. We currently have 12 000 registered users,
with an average of 9 000 unique visitors/ month. DP serves about 350 000
page impressions/ month, so it's a very popular website. It was voted the
top IT store in South Africa for 2000 in a recent research study conducted
by Arthur Goldstuck.

Digital Planet partners with content providers, just to mention a few: IDC,
Media Africa.com, SA Internet, MyNewEconomy and Sharenet. The site offers
international and local customised IT news that is sent to subscribers via
daily email.

Being community-centric, DP focuses on providing interactive services such
as: Ask Prof. Planet - 24 hour technical advise, discussion forums,
competitions, surveys, etc. Members are rewarded for their participation
through a loyalty program.

Digital Planet has partnered with 150 vendors and offers over 50,000
hardware, software, networking and gaming products at unbeatable prices. The
sites also hosts 13 vendor-shops, including HP, Microsoft, Palm, Compaq,
Acer, etc. These enable customers to shop by their preferred brands. The
shopping is taking off (Digital Planet's strategy this year is to convert
our members into buyers!) and the most popular products purchased include:
DC-Writers, Palm handheld devices, printers, PCs and gaming software.

Potential buyers can select any product from a detailed on-line catalogue
containing relevant technical data, a photograph of the product and
independent customer reviews. The ordering process is simple - it takes
approximately 3 minutes for a user to complete an order and instant
invoicing is available. Payment occurs in a secure 'Thawte certified'
environment, and the following payment options are made available to
customers: eBucks, bluebeans, credit card, account and cash.

Digital Planet prides itself on its efficient logistics management and
timely product delivery. Delivery rates are highly competitive, and we offer
a range of warranty options subsequent to the purchase. Our commitment to
customer service extends beyond product delivery, with community care
offerings and after-sales service.

Auctions also form part of the 'commerce' section of the site. Digital
Planet hosts 40 auctions a day, with 20 closing/ day. All IT products are
new and include a full carry-in warranty. Also delivery is free.

The profile of a typical Digital Citizen is a 'tech-savvy' male, aged
between 18 and 45, who accesses the Internet equally from home and work and
who has bought online before.

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NEWS ROUND-UP AND SNIPPETS
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* KENYAN ISPs SEEK LICENCE FOR EXCHANGE - SAGA GOES ON...

Kenya's main Internet service providers have changed tack in their fight a
controversial local Internet exchange when they applied to the
Communications Commission of Kenya for a licence.But the real struggle for
the ISPs may just be beginning, as Telkom Kenya is likely to mount a strong
opposition to the application.

And it will be interesting to see how CCK will handle Telkom's protest in
light of Director-General Samuel Chepkonga's undertaking last year to
register the exchange "if they (ISPs) applied in the right procedure."
Telkom has a major stake in the Internet sector, where it provides backbone
services through its Kenstream and JamboNet services, and the licensing of
the exchange would have far-reaching implications for its revenue base. In a
Kenya Gazette notice published last Friday and dated March 21, Mr Chepkonga
acknowledged the application and invited presentations from the public, as
is normal practice during the 60-day "exposure period."

An exchange of the type sought by local ISPs acts as an information
'clearing house' among member ISPs, reducing the time and cost required to
send and receive electronic mail locally. With the service, local messages
do not have to go through international exchange routes as happens at
present even if the mail's destination is literally across the street.
Inter-ISP connections attain the same speed as intra-ISP ones, while there
are also potential savings in bandwidth and the development of new revenue
streams.

The international routes sometimes involve exchanges in more than one
continent, forcing ISPs to use the more expensive JamboNet circuits when the
much cheaper Kenstream digital link would suffice.Last year, the ISPs
operating under the umbrella of industry lobby Telecommunications Service
Providers of Kenya (Tespok) had taken the hardline view that they did not
need a licence to operate the service and went ahead with installations,
sparking acrimonious exchanges with the regulator.

They argued that since the technology used on the Cisco-installed exchange
was no different from a Local Area Network connection used in most company
networks, they did not require a licence.But the Mr Chepkonga stood his
ground arguing that the exchange fell under the classification "Value Added
Services" in the Communications Act and was subject to a Sh100,000 licence
fee. Telkom, he said, had no monopoly in such services.

In a major shift, the licence is now being pursued by a commercial venture
as opposed to last year when the original facility was fronted by Tespok
itself.The ISPs promoting the venture have formed the Kenya Internet
Exchange Point Ltd, a consortium that brings together ISP Kenya, Africa
Online, Swift Global, Kenyaweb, Insight, NairobiNet, InterConnect, Wananchi
Online and Access Kenya. At present, it is a loose structure which is
however expected to transform itself into a fully-fledged company if granted
the licence.

Kenya has a thriving Internet trade, but many analysts believe its full
potential has been severely constrained by regulatory hitches. As a result,
the number of people with Internet connections is still under 40,000 in
spite of the presence of more than 40 registered ISP in the market.
(source: Washington Akumu, Daily Nation, 27 March 2001)

* TANZANIA PROVIDES DIGITAL MAPPING SERVICES TO CALIFORNIA

With assistance from infoDev and Perwit International, a Canadian-based
consultancy, a Dar-es-Salaam-based company is now offering digital mapping
services to companies in California. According to Perwit's Jacques
Rostenne:"The volume is still small, but the client is satisfied, the
business case is very strong and the potential is significant".
(source: Perwit International)

* ZIMBABWE HOSTS MEETING ON SCIENCE PARK INITIATIVE

The Scientific and Industrial Research and Development Centre (SIRDC) of
Zimbabwe, in collaboration with the United Kingdom Science Parks Association
(UKSPA), hosted a workshop on science parks development in Zimbabwe on March
21-22, 2001.In February 1999, the British Council, together with SIRDC, UZ
and NUST, jointly ran a two-day workshop under the theme "Creating Wealth
Through Science". This rare workshop explored how partnerships between
industry, research institutions and academia could enhance the exploitation
of new knowledge and technologies for commercial applications. This will
enhance wealth creation, provision of employment and support further
scientific research.

It brought together British and Zimbabwean experts who shared experiences
regarding the structures in Great Britain and Zimbabwe on the dynamics of
industry-academic links. It was an excellent opportunity for Zimbabwe to get
government, industry and researchers together for discussions. It was a
highly productive and challenging interaction. It demonstrated how science
parks in the UK, for example, have made a difference to individuals¹ and
society¹s prosperity. The meeting noted that the driving force in the UK is
aiming to ensure that research is strategically linked to commerce and
industry so that technology leads to commercial spin-offs.

Several interesting and fruitful activities have been implemented since the
workshop of February 1999. A framework is now being put in place to
incubate the ideas of "research entrepreneurs" into successful enterprises.
To facilitate this endeavor, a memorandum of understanding was signed
between SIRDC and UKSPA. The meeting will lead to a science-park-type
initiative in Harare

The cooperation between SIRDC and UKSPA is based on mutual benefit. It aims
to increase cooperation and awareness, establish a normal liaison and
information exchange system, promote the progress of small and medium
enterprises, lead to further cooperation in science and technology between
the two countries. The ultimate objective of the cooperation would be to
facilitate commercial cooperation including technology transfer between
tenant companies in SIRDC science and industry parks, innovation centres and
those in UK science parks.
(source: Fortune Mhlanga, Informatics & Electronics Institute)

* TWO NEW ORGANISATIONS TACKLE AFRICAN INTERNET POLICY FRAMEWORK

The Global Internet Policy Initiative (GIPI), a project of Internews
(http://www.internews.org) and the Center for Democracy & Technology
(www.cdt.org), aims to contribute to addressing digital divide issues
through policy work. GIPI supports "good" internet policy around the world
by hiring local Country Advocates and providing them with the resources they
need to work with local stakeholders (business, third sector, academia,
international organizations) to identify possibilities for change on a
policy level (in cooperation with the executive and legislative branches)
and then to encourage adoption and implementation of those improvements.

It is launching the idea world-wide but its first country in Africa will be
Nigeria. The Advocates have the ability to call upon a full-time Internet
policy lawyer dedicated to GIPI and based in Washington, DC (and, if we can
find funding, another in Paris) for advice, evaluations of draft legislation
or regulation, or visits, and are part of an international network providing
them with information about "best-practice" Internet policy elsewhere in the
world and how to apply it in different situations. The effort has received
funding from major foundations (OSI, Markle, Knight) and corporations (AOL,
MS). Contact GIPI Managing Director Eric Johnson at [email protected] if
you want to know more.

Bridges.org is another international nonprofit organization working on the
digital divide that has recently launched an office in Cape Town, South
Africa, which will be its main base for operations. Its approach in South
Africa is two-fold: removing the obstacles to IT use at the grassroots level
by helping people understand the technology and its utility, and working at
the policy level by promoting laws and policies that foster technology use.

Bridges.org is engaged in the ongoing IT policy debate in South Africa by
contributing information and recommendations, fostering consensus and
playing a role as a neutral facilitator among government agencies, the
business community and nonprofit organizations. Two bridges.org board
members, Esther Dyson and Mark Shuttleworth, also participate on President
Mbeki's International ICT Task Force. Bridges.org is contributing a variety
of information resources as an independent and unbiased voice, which can be
used by policy-makers and the general public as they navigate these complex
issues, including reports on best practice case studies, and the range of
perspectives on specific topics.

Bridges.org recently launched CITI-bridges, a joint project with the Cape
IT Initiative (CITI) to establish a Cape Town technology outreach and
resource center. The center will be based in CITI's "Bandwidth Barn," a
high-tech entrepreneurial center. The project aims to build on the energy
around the business activities to engage the broader community to help IT
integration in society. E-commerce is an important part of the puzzle, but
integrating technology in developing countries has to be about more than
just expanding global markets IT must be used as part of the solution to
problems in education, healthcare, open and efficient government, and local
economic development.

The CITI-bridges center will also implement the bridges.tech.guide in the
programs that it partners with. The tech.guide is, a free manual that
instructs on computer applications while teaching about the critical social
aspects of technology use such as privacy, security, content, free speech,
and copyright. It aims at getting people comfortable using the basic
technology and helping them become informed Internet citizens. For more
information: http://www.bridges.org or [email protected].

* SALE PROCESS FOR NIGERIA'S NITEL UNDER WAY

The process of selling state-owned fixed-line telecoms group Nitel
and its mobile arm, M-Tel, has begun. Strategic investors have been invited
to bid for between 40% and 51% of the two companies, which are being sold as
a single package. The deadline for bids is June 11th, and a shortlist of
prequalified bidders will be announced within ten weeks of the closing date.
The Bureau for Public Enterprises expects to close the deal in September --
six months later than the original target date of March 2001.
(source: http://www.africanewsnow.com )

* CAPE TOWN'S CENTURY CITY OFFERS HIGH SPEED DATA NETWORK

Century City, one of the largest and most high-profile property developments
in Cape Town, is also one of the first projects of its kind in the world to
be fully wired for a high speed data network from the ground up.
(source: Boot http://www.boot.co.za/news/mar01/wiredworld30.htm )

* ITU REACHES CONSENSUS ON VOIP

The International Telecommunication Union's third World Telecommunication
Policy Forum closed with the adoption by government and industry of four
"Opinions" that reflect the common understanding on Internet Protocol (IP)
Telephony. The Opinions highlight the shared views that:

* the deployment of IP-based networks and applications has the potential to
benefit users, industries, and the economy at large, because it fosters
technical and market innovation, and diversity and growth in the economy;

* IP Telephony and other IP-based applications can provide a significant
opportunity for all countries to respond to the convergence of information
and communication technologies and to evolve their networks in order to
expand the availability and use of a broader range of modern communication
capabilities service sectors;

* the flexibility of IP technologies will contribute to an integration of
voice and data networks, thereby allowing suppliers to take advantage of
synergies and possible cost reductions, which will enable the provision of
new innovative services and applications;

* mobile wireless systems are expected to migrate towards an IP-based
architecture in order to deliver integrated voice, data and multimedia
services, as well as access to the Internet;

* although IP Telephony has created some negative impacts on voice revenues
generated by a number of telecommunication operators, particularly in some
developing countries, there could also be a revenue gain for other
communication operators and service providers.
For more information visit: http://www.itu.int/newsoom.
(source: Screen Africa News Bulletin 13 March 2001 via TAD Newsletter)

* MICROSOFT SA LAUNCHES FIFTH DIGITAL VILLAGE

Besides the imminent launch of two digital villages in the Cape area,
Microsoft SA have also been in a position to use some of the funds received
from damages awarded to them in its ongoing fight against software piracy to
assist with the opening of the Umtata SOS digital village at the Umtata SOS
children's village.
(source: Boot http://www.boot.co.za/news/mar01/microsoft20.htm )

* GLOBALTRON SIGNS UP TWO AFRICAN COUNTRIES FOR ITS VOIP NETWORK

Globaltron Corporation announced today that it has signed two sets of
contracts that will allow Globaltron to terminate and originate voice and
data traffic in the African countries of Morocco and the Ivory Coast. The
contracts will allow Globaltron to immediately begin to send and receive
voice and data traffic using Globaltron's U.S.-based ATM/VOIP switching
network and backbone.Globaltron is actively soliciting and negotiating like
contracts in several other countries.
(source: Globaltron )

* OMNIE LABS GETS TO DEVELOP IP FIBRE OPTIC CABLE BETWEEN NIGERIA AND USA

OmniE Labs has been contracted by 2pipe.com, an international
telecommunications company, to design and build an advanced IP- over-
satellite network for high-speed voice and data transmission between the
U.S. and Nigeria. The contract to develop the new technology-based Internet
communications framework follows an initial engagement in which OmniE Labs'
software architects analyzed the 2pipe.com fiber optics network vision and
determined that the concept was commercially viable. The network, once
deployed, will be one of the largest between the US and Nigeria.

The fiber optics gateway for high-speed voice and data transmission from the
U.S. to Nigeria is the first of several major projects planned by 2pipe.com
to provide advanced communications services in Nigeria and other underserved
global markets. The Princeton, NJ-based company has been granted operating
licenses by the Nigerian Communications Commission to provide ISP and
cabling services throughout the country. Nigeria, a nation of 110 million
people in which demand dramatically exceeds supply of voice and data links,
presently has no fiber optics to the home infrastructure.
(source: OmniE Labs)

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ON THE MONEY
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* SA GOVERNMENT-OWNED ICT COMPANIES RESTRUCTURE

On 1 April 2001, Telkom will integrate its wholly-owned subsidiary, Intekom,
into its operations as an essential part of its new e-business strategy.
Telkom is currently rationalising its e-business activities, including all
aspects of the Internet. According to Telkom:"As an industry leader and
important asset, Intekom is fundamental to Telkom's current and future
endeavours, and the integration will harness synergies between the two
companies".Intekom is the third-largest ISP in South Africa and is the
fourth largest player in the business arena, and has experienced strong
growth in revenue. It is perhaps only the cynical who will ask if
integration is such a good idea, why was Intekom spun off in the first
place?

The new state-owned information technology company, arivia.kom - formed as a
result of the successful merger between ITS, the IT division of Eskom,
Datavia, the IT division of Transnet, and Ariel Technologies, the IT
division of Denel which was previously announced by the Minister of Public
Enterprises, Jeff Radebe, in January, was officially launched.
(source: Boot and Telkom)

* PINNACLE PLANS TO FACE PROFITS DROP WITH NEW "INCOME MIX"

IT products and services supplier Pinnacle Technology Holdings, which has
reported what it calls a "disappointing" 27% drop in operating profit for
its interim period, plans to change its income mix. Is this a wider omen?
(source: http://www.itweb.co.za/sections/financial/2001/0103200829.asp )

* NASPERS SUBSIDIARY MERGES WITH INTERCONNECTIVE

Media24, a wholly owned Naspers subsidiary, has teamed up with
Interconnective Solutions (Isolutions) to form Audio24.
(source: http://www.digitalplanet.co.za/dp/news/red.asp?ID=11116 )

* INVESTMENT FOLLOWS BUY-OUT OF TANZANIAN STATE TELCO

Tanzania's telephone system is poised for a face lift following the transfer
to private hands, of the state-owned Tanzanian Telecommmunications Company
Limited in a multi-million dollar deal.
(source: http://www.boot.co.za/news/mar01/tanzania28..htm )

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USEFUL WEB SITES AND DISCUSSION LISTS
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* ONE PERSON'S CHOICE: BARBARA KIRSOP, ELECTRONIC PUBLISHING TRUST

Barbara Kirsop of the Electronic Publishing Trust provides an overview of
science research sites that are available at little or no cost:

As a bioscientist by profession, my interest is in the international
distribution of scientific research literature. Traditionally carried out by
printed journals, the trend over the last few years has been to use the
electronic medium to supplement or replace printing. Now, very many journals
are online and many documents are available as single documents. My career
change from the laboratory to the publishing environment also led me to work
with scientists in the developing world and, within this context, I am now
concerned both with 1) access by developing country scientists to the
world's research literature and 2) the electronic incorporation of research
generated in developing countries into the international knowledge base. My
choice of sites, listed below, reflects efforts to free the world's research
literature for the benefit of all and to ensure that research from the
developing world is included in these initiatives. Attaining this objective
would have a profound beneficial impact on the development of science.

Regarding access, it is unfortunate that e-publishing has not necessarily
meant more equitable access, since publishers have mostly only made access
to the electronic version of their journals free only to existing print
subscribers. Since prices of journals continue to rise, there are fewer and
fewer subscribers from the developing world - and access remains restricted
by ability to pay. But happily, this fact is increasingly considered to be
unacceptable and a number of new initiatives to provide research literature
free on the Internet are appearing. Further, there are exciting developments
that allow institutional archiving of refereed research papers that are then
free to all. Software is being developed that allows such archives to be
interoperable (Open Archives Initiative). This is the dream situation that
most academic scientists with equitable access to global research at heart
would wish to see come true. In the electronic age, the means exist. This
change of approach, and raising awareness of the new initiatives, should
close the N to S knowledge gap. There seems to be a gradual transition
underway, leading from printed journal (by subscription)->printed journal +
online version (still by subscription)->online-only (often free of
charge)->institutional archiving on linked archive sites (free of charge).
There are many models along the way, all aiming to improve access to
essential information.

But the other problem is that research generated in the developing world -
that is essential to ensuring the global knowledge base is complete - is all
but invisible due to economic constraints facing developing country
publishers. To close the resultant S to N knowledge gap, publishers in the
developing world need to be made aware of the benefits of e-publishing, be
trained in e-publishing technologies and be assisted in locating appropriate
distribution mechanisms. Gradually, programmes addressing this problem are
being funded.

As these processes continue, it seems likely that the exchange of publicly
funded research information will eventually become 'free to all' in the same
way that the sequence, protein, carbohydrate, microorganisms databases are
already free to all and in the e-public domain. The means exist and what is
needed now is support for electronic infrastructure in the developing world,
together with the international and local organisation of information flow
(via information waystations, academic telecentres [libraries/
institutes/universities etc], local networks, staging posts) until such time
when wider electronic access becomes available.

It will be noted that only one of the sites listed below is in a developing
country (the software for Bioline International was developed in Brazil and
the system is hosted there), indicating that much awareness-raising and
support is required to develop local web sites for journals. It is hoped
that the work of the facilitating organisations listed below will can help
to bring about these changes.

* SITES OFFERING ACCESS TO REFEREED BIOSCIENCE ACADEMIC RESEARCH
JOURNALS/DOCUMENTS (either free or low-cost)

- Bioline International - full text bioscience journals mostly from
developing countries; free abstracts, full text on subscription; other free
material including online-only journals; discussion fora, links to a number
of free refereed journals. E-pub technology training; non- profit:
bioline.bdt.org.br

- BioMed Central - full text medical research papers (not journals) +
support for authors in archiving; new journals encouraged; all papers free
and also archived with PubMed Central (below): www.biomedcentral.com

- British Medical Journal - free full text medical research papers:
www.bmj.com

- PubMed Central - full text life-sciences journals (with links to required
documents hosted by collaborating publishers rather than on PMC server);
documents either free or on subscription: www.ncbr.nlm.nih.gov/PubMed

Scientific Electronic Library Online (SCIelo) - distributes scientific
journals published in Brazil, Chile and neighbouring Latin American
countries; free abstracts, full text on subscription: www.scielo.br

- The Lancet - Electronic free archive for medical research authors in the
developing world - copyright owned by authors: www.thelancet.com.era

* FACILITATING SITES/ORGANISATIONS FOR PROMOTING DISTRIBUTION OF RESEARCH

- Electronic Publishing Trust for Development (EPT) - assists publishers
from developing countries convert printed text to electronic; facilitates
distribution (links to Bioline and a number of other online journals, many
of which are free; organises workshops on e-technology; developing
e-publishing online free manual: dspace.dial.pipex.com/bioline/

- International Network for the Availability of Scientific Publications -
supports online distribution of abstracts from journals published in
developing countries (African Journals Online project); organises workshops
on academic writing, publishing etc: www.inasp.org

- Open Archive Initiative site (develops software that allows interoperable
searching across a growing number of institutional archive sites):
www.openarchives.org

- Public Library of Science initiative - invitation to agree to using
journals that make material available free, either always or 6 months after
publication - gaining support from the academic community:
www.publiclibraryofscience.org

Post script: My personal site of choice is that of ICSU's World Federation
for Culture Collections. The site gives links to the world's microbial
resources, where they can be found, how to get them.... The WFCC Committees
address a number of issues relating to the use of microorganisms
(preservation, taxonomy, safety, patents....) and the reports of their
activities is available from the site. There are many links to related sites
and it's a good jump-off place for microbiologists.

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IN SEARCH OF THE BUSINESS MODEL
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* CONSUMERS NOT LIKELY TO GET MOVIES VIA THE INTERNET

According to Forrester Research, digital cinema and cable-based video on
demand, rather than internet distribution, will change the way the public
watches movies. Will the same hold true for Africa that will not become so
heavily cabled?
(source: http://www.itweb.co.za/sections/internet/2001/0103130833.asp )

* AFRICAN E-COMMERCE FACES FORMIDABLE OBSTACLES

Perhaps more than any other technology-driven phenomenon of the past decade,
the success of e-commerce is predicated upon a complex mix of catalytic
enablers that go to the heart of a market's social and technical
infrastructure, from easy availability of capital to basic literacy to
telecommunications networks. Almost by definition given the state of their
infrastructure, the developing markets of Africa were destined to lag far
behind their Western counterparts in the e- commerce race. On the whole,
obstacles to e-commerce in the Africa region stem mostly from the fact that
the concept is Western-born. Local markets have to adjust their
infrastructure while tweaking foreign-developed concepts for implementation
in environments with starkly distinct uses and customs.

It is worthwhile to note here that the two stripes of e-commerce (B2C and
B2B) face different prospects as they respond to fundamentally distinct sets
of needs. B2C brings businesses and consumers together in flexible
marketplaces, creating a new channel for the sale, purchase or peer-to- peer
exchange of various products and services. B2B also creates an electronic
marketplace (for business transactions), with the ultimate ambition of
streamlining business processes and reducing costs across firms and
industries. Initial indications from the South African market are that B2B
is developing much faster than B2C, principally because as a business
marketplace, it addresses profitability issues and is less dependent on the
administrative shenanigans that plague the region.

To a large extent, the conclusions of Pyramid's analysis of the prospects
for a viable Internet sector in Africa are not surprising:

*Pure play business models like Amazon.com will not work in Africa;
nevertheless, a model that shows good potential is a "virtual mall" model
that brings together established retail companies and e- commerce enablers.

* Addressable markets for online shopping are small in most markets, and any
B2C venture would walk a fine line between a low revenue base and
potentially high costs.

* In the African B2C space, the Internet has failed to play the
disintermediation (or elimination of intermediaries) role that is at the
root of the success of Internet ventures elsewhere; in turn, the economic
feasibility of B2C ventures is highly questionable.

* The models that are most likely to work will be those that find a way
around the deficiencies inherent in local markets and offer users attractive
alternatives. (source: Pyramid Research via http://www.AfricaNewsNow.com )

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JOBS
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* REGIONAL CO-ORDINATOR, ONEWORLD AFRICA

OneWorld is an international non-profit network whose mission is to harness
the democratic potential of the Internet. Its site www.oneworld.net is the
world’s leading portal on development and human rights.It is looking for a
Regional Coordinator to lead the OneWorld Africa team
based in Lusaka, Zambia.

Key responsibilities include: managing the staff and resources within
OneWorld Africa, editing the OneWorld Africa edition
www.oneworld.net/africa, preparing and implementing strategic plans for
OneWorld Africa, promoting OneWorld within Africa, organising training
sessions for OneWorld partner organisations in Africa. Candidates must have
a proven record of management achievement and strong writing skills in
English.They should be passport-holders of an African country and be willing
to re-locate to Lusaka (assistance with re-location is available).

Applicants should be familiar with working on the Internet. Experience of
social entrepreneurship, donor requirements and
the African NGO context are desirable, as is knowledge of other languages
widely spoken in Africa. Salary: equivalent to c.18,000 pounds sterling per
year. Location: Lusaka, Zambia. Contract period: 22 months.

Applications. Candidates should send a CV and covering letter, explaining
how their skills and experience are relevant to the responsibilities
outlined. Applications should be sent to the Office Manager at
[email protected], or by post to: Office Manager, OneWorld International,
17th floor, 89 Albert Embankment, London SE1 7TP, UK. Closing date:
applications must be received by 20 April. Short-listed candidates will be
contacted within two weeks of the closing date. Previous applicants need not
re-apply.More details and application information on OneWorld Jobs
www.oneworld.net/jobs http://nt.oneworld.org/jobs/ads/index.cfm?job_id=209

* WORLDTEACH _ ICT PROJECT CO-ORDINATOR, NAMIBIA

The ICT Project Coordinator will develop and implement the ICT Teaching
Project, a collaborative effort of SchoolNet and WorldTeach to provide
access to and training in information and communication technology (ICT) to
targeted schools throughout Namibia. The ICT Project Coordinator will lead
and support a team of WorldTeach volunteer ICT teachers during their 2-month
assignment. Throughout the year, the ICT Project Coordinator will support
participating schools, teach ICT skills, and participate in SchoolNet
activities designed to develop ICT education in Namibia.

This is a funded year-long volunteer position, made possible by the
generosity of the Global Catalyst Foundation. International airfare, health
insurance, and pre-departure administration will be provided by WorldTeach.
Accommodation and a monthly living allowance of approx. N$1200 (about
US$160) will be provided by SchoolNet. This assignment begins May 2001 and
is for one-year (time frame may be negotiable).

Requirements: Strong computing skills, working knowledge of MS Windows
operating system, common applications, and Internet. Ability to diagnose and
trouble-shoot computer problems and fix computer networks preferred. Web
site design/editing experience preferred. Project management skills and
experience. Teaching or training experience.Strong interpersonal and
communication skills, and ability to work with people of different ages and
cultures. Experience in or knowledge of issues in ICT education/training
preferred. Experience living and working overseas preferred.

To apply, complete a WorldTeach volunteer application and attach a cover
letter outlining your ICT experience. Volunteer application forms and
instructions are available on the web at
www.worldteach. org or can be requested by
calling 1-800-483-2240. Applications are being accepted now for a May
departure to Namibia. Contact Harriet Wong, Program Manager, WorldTeach at
tel. 1-617-495-5527 or [email protected] if you have questions.

____________________________________________________________________________
ICT GRANTS
____________________________________________________________________________

* INFODEV INVITES GRANT APPLICATIONS: PROCESS IS SIMPLER

infoDev's next grant competition will close on June 1, 2001. Proposals are
invited from the development community. A new format has been designed
this year to reduce the work involved in preparing a proposal. As in the
past, proposals will be subject to outside peer review prior to approval.
The evaluation of proposals received by June 1 should be completed by the
end of July, and the winners funded shortly thereafter. While it expects to
hold about three competitions per year, it is advisiing p[otential
applicants that the best bet is to apply early.

The Information for Development Program infoDev is a global grant program
managed by the World Bank to promote innovative projects on the use of
information and communication technologies (ICTs) for economic and social
development, with a special emphasis on the needs of the poor in
developing countries. The program, which was created in 1995, has funded
hundreds of projects. Its core program encourages improved
telecommunications and Internet connectivity in developing countries by
promoting improved policies and regulation, developing communities of
interest, and selected training. infoDev also promotes innovative
applications of ICTs in health, education, environment, government and
e-commerce by funding projects which pilot and demonstrate such
applications, or develop and disseminate best practices.
For more information, visit the infoDev website: http://www.infodev.org

____________________________________________________________________________
EVENTS
____________________________________________________________________________

* AFRICAN E-COMMERCE FORUM CALLS FOR NEW TELECOMS POLICY

African governments need to urgently rethink and rewrite their
telecommunications sector policy if e-commerce is to make an impact in
Africa, was the overwhelming consensus among delegates to the first African
Electronic Commerce Forum (eForum) held in Nairobi over 7-9 March. And a
major element of the new legislation should be increasing competitiveness in
the sector by striking out the monopoly clauses and encouraging the private
sector to drive the infrastructure development process.

Speaking at the eForum, hosted by African IT Exhibitions and Conferences
(AITEC), Najib Balala, chairman of Kenya's National Task Force on Electronic
Commerce, said telecommunication was critical as it served other productive
sectors of the economy. "Telecommunication is a trade issue, which requires
policies designed to rapidly build a network that satisfies other sectors,"
he said, calling for an urgent review of telecommunication policy to ensure
the imperatives of the new information are recognised.

The Kenyan Minister of Tourism, Trade and Industry, Nicholas Biwott, urged
stakeholders in e-commerce to develop policy frameworks, which they could
submit to the Government for consideration. He said such a policy framework
would enable them take advantage of business opportunities in the global
market."The Kenyan Government is fully committed to formulation and
implementation of policies that will ensure members of our business
community are not only e-commerce aware, but are ready and able to
restructure information about their products and services for the benefit of
consumers and businesses," he said.

The eForum is an Africa-wide effort to chart the way forward for the
continent's e-commerce initiatives. "There are several e-commerce
initiatives in the continent all being fronted by different organisations
and the African eForum seeks to bring all those initiatives onto one agenda
for discussion and deliberation and give thrust to the e-commerce
development in the continent," said Sean Moroney, Aitec Group Chairman.

More than twenty-six presentations from e-commerce experts were made which
covered regulatory, skills and technological issues. Several development
partners including Canada's IDRC, the UN Economic Commission for Africa and
the African Telecommunications Union were represented.
(source:AITEC)

____________________________________________________________________________
BACK NUMBERS: AFRICA AND THE DIGITAL DIVIDE
____________________________________________________________________________

49. Digital growth in Africa -Things Govts can do for free or nearly free
http://www.balancingact-africa.com/news/back/balancing-act49.html

48. Volunteers seek to build an IT culture in Africa
http://www.balancingact-africa.com/news/back/balancing-act48.html

44. Recycling unwanted computers to needy users in Africa
http://www.balancingact-africa.com/news/back/balancing-act44.html

35. Bridging the information divide - health and internet special
http://www.balancingact-africa.com/news/back/balancing-act35.html

34. Getting connected: A telecomms special
http://www.balancingact-africa.com/balancing-act34.html

31. Schoolnet: Building tomorrow's digital generation
http://www.balancingact-africa.com/news/back/balancing-act31.html

27. Telecentres: The key to wider internet access?
http://www.balancingact-africa.com/news/back/balancing-act27.html

25. ACT 2000: Taking the pulse of internet development
http://www.balancingact-africa.com/news/back/balancing-act25.html

23. Africa's digital rights - a minefield of issues
http://www.balancingact-africa.com/news/back/balancing-act23.html

22. Digital villages open up access to skills and education
http://www.balancingact-africa.com/news/back/balancing-act22.html

21. Spectator at the feast - An African at INET
http://www.balancingact-africa.com/news/back/balancing-act21.html

20. Africa and the digital divide: three clouds don't make a rainy season
http://www.balancingact-africa.com/news/back/balancing-act20.html

You can read and download these at http://www.balancingact-africa.com . If
you have difficulties accessing the web, mail us on
[email protected].

___________________________________________________________________________
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