According to the "South African B2C E-Commerce Report 2012", South Africa was already in 2011 the fifth largest country in Africa in terms of the number of Internet users. Today in 2014, there are approximately 12,5 million South African Internet users . Since several years, the E-Commerce sector is facing a boom in South Africa. However, not everybody seems to profit from or participate in this boom.
Economically and socially, South Africa is still deeply divided. The inequality within the population, the distance between rich and poor is extreme: The richest 20 percent of the population account for almost 70 percent of total income, the share of the poorest 20 percent is just under three percent. Almost a third (31.9%) of the population lives on the equivalent of less than 2 Dollars a day . Around seven million people are considered long-term unemployed with no job prospects, especially those living in informal settlements, the so-called „townships“.
The social and economic inequality is a big problem for the country of South Africa. E-Commerce has the potential to resolve this problem, as it is booming and companies plan to extend their businesses as well as their employee numbers. The idea is to train people from the townships in order to get them to work in the E-Commerce business. Interesting for this thesis are those E-Commerce companies with big storage halls, as they are the ones who might be in need of untrained employees of the townships. Jobs could be needed in basic positions such as picking and packing, quality control and customer services in big warehouses.
Supposed it would be actually possible to use training initiatives and programs in the form of cooperations of E-Commerce companies and township NGO´s, resulting in dimishing unemployment and leading to permitting more people participate in the boom of E-Commerce, the South African economy and its society as a whole would gain a tremendous benefit.
The research question in this master thesis is interlinking the existing economic boom of E-Commerce with the high unemployment rate in the townships: Does the fast-growing E-Commerce in South Africa have an effect on the high unemployment rate in the townships? In the quest for an answer to this question, attention is paid to two related questions as well: Do the lowest social classes feel an improvement in their living standards after being hired by an E-Commerce business?
Table of Contents
1. IMPORTANT FACTS ABOUT SOUTH AFRICA
2. E-COMMERCE
2.1 DEFINITION OF E-COMMERCE
2.2 E-COMMERCE LANDSCAPE IN SOUTH AFRICA
2.3 E-COMMERCE COMPANIES
2.4 E-COMMERCE COMPANIES FOR THIS MASTER THESIS
3. TOWNSHIPS
3.1 DEFINITION OF TOWNSHIPS
3.2 HISTORY OF SOUTH AFRICAN TOWNSHIPS
3.3 SOUTH AFRICAN TOWNSHIPS TODAY
4. EDUCATION & UNEMPLOYMENT IN SOUTH AFRICA
4.1 EDUCATION IN SOUTH AFRICA
4.2 UNEMPLOYMENT IN SOUTH AFRICA
4.3 YOUTH UNEMPLOYMENT
5. METHOD: QUALITATIVE RESEARCH
5.1 RESEARCH STRUCTURE
5.2 SEMI-STRUCTURED INTERVIEWS
5.3 INTERVIEW PARTNERS
5.4 INTERVIEW QUESTIONS
5.5 ANALYSIS OF DATA
6. RESULTS & ANALYSIS
7. CONCLUSION
8. DISCUSSION
8.1 SUGGESTED CONTRIBUTIONS FROM THE STATE. A 3-STEP-PLAN.
8.2 A CRITICAL LOOK ON THE METHODOLOGICAL APPROACH
8.3 FUTURE OUTLOOK
Research Objectives and Core Themes
This master thesis investigates whether the rapid growth of the E-Commerce sector in South Africa can effectively reduce the high unemployment rates among inhabitants of townships. It explores whether employment in E-Commerce companies improves living standards for these social classes and assesses if businesses can rely on township residents as a viable workforce.
- The intersection of E-Commerce expansion and unemployment reduction in South Africa.
- Socio-economic challenges faced by township residents.
- Qualitative assessment of hiring practices in major E-Commerce and retail firms.
- Evaluation of training programs (NGOs and corporate) aimed at bridging the skills gap.
- Policy recommendations for state-level support and education reform.
Excerpt from the Book
3.1 Definition of townships
A South African township is a specific type of slum. However, its history differs in terms of what other slums are like around the rest of the world. Before exploring what a South African township is, here is at first a broader definition of what a slum is: „A Slum is a segregated residential area in usually urban agglomerations, which should be understood as an inner-city emergency shelter. Characteristics are signs of deterioration of the building fabric, low living standards, poor infrastructure and a high proportion of unemployment and workers in the informal sector. Slums are to be seen more likely in developing countries as a collecting quarters for urban migrants in the context of increasing rural exodus“.
The UN-Habitat report, "The Challenge of Slums" contains an entire chapter on the definition of slums and methodology to capture this statistically. An insightful definition of a slum is: „(...) a contiguous settlement where the inhabitants are characterized as having inadequate housing and basic services. A slum is often not recognized and addressed by the public authorities as an integral or equal part of the city“.
The report´s characteristics for slums are as follows: 1. Poor localization (in public space, on steep slopes, large distance to jobs, etc.). 2. Lack of protection from the climatic conditions, natural and other risks. 3. Temporary construction and serious design deficiencies. 4. Small and smallest area and overcrowding of premises. 5. Lack of infrastructure , particularly water and sanitation. 6. Lack of legal protection and unsecured residence.
Summary of Chapters
1. IMPORTANT FACTS ABOUT SOUTH AFRICA: This chapter provides an overview of South Africa's economic status, cultural diversity, and the structural challenges stemming from its Apartheid history.
2. E-COMMERCE: This section defines E-Commerce and analyzes the current market landscape in South Africa, including the types of companies operating within this growth sector.
3. TOWNSHIPS: This chapter examines the historical evolution and current definition of South African townships, highlighting the poor living conditions and infrastructure deficits.
4. EDUCATION & UNEMPLOYMENT IN SOUTH AFRICA: This section details the educational crisis and high unemployment rates, specifically focusing on the youth and the persistent skills mismatch in the labor market.
5. METHOD: QUALITATIVE RESEARCH: This chapter outlines the research methodology, explaining the use of semi-structured interviews with experts from E-Commerce companies and NGOs.
6. RESULTS & ANALYSIS: This chapter presents the findings from the qualitative interviews regarding hiring criteria, skills needed, and the overall impact of employment on township residents.
7. CONCLUSION: This chapter synthesizes the research findings to answer the primary research question regarding the role of E-Commerce in reducing unemployment.
8. DISCUSSION: This chapter proposes a 3-step plan involving state contributions and corporate responsibility to foster long-term positive change in the South African labor market.
Keywords
South Africa, E-Commerce, Townships, Unemployment, Education, Qualitative Research, Corporate Social Responsibility, Skills Gap, Poverty, Economic Growth, Labor Market, JumpStart, Social Sustainability, Informal Settlements, Employment.
Frequently Asked Questions
What is the core focus of this research?
The research examines the relationship between the booming E-Commerce sector in South Africa and the high unemployment rates within the country's townships.
What are the central thematic fields covered?
The paper covers E-Commerce development, the history and current situation of South African townships, educational system failures, and employment challenges.
What is the primary research question?
The study asks whether the E-Commerce boom can help lower unemployment in townships and if it leads to improved living standards for residents.
Which methodology is employed in this study?
The author uses a qualitative approach, conducting semi-structured interviews with industry experts, HR managers, and representatives from NGOs involved in training.
What does the main body of the work address?
The body analyzes the socio-economic environment of townships, educational shortcomings, and empirical findings from interviews with companies regarding their hiring and training strategies.
Which keywords characterize the work?
Key terms include E-Commerce, South African townships, unemployment, education, and corporate social responsibility.
How does the author define a "township" in this context?
A township is defined as a specific, historically-rooted type of slum or segregated residential area characterized by poor infrastructure and high unemployment, differing from generic slums due to its state-organized origin.
What are the identified challenges for E-Commerce companies hiring from townships?
Key challenges include transportation issues, hygiene standards, high turnover due to personal/life circumstances, and a significant skills mismatch that necessitates internal training programs.
- Arbeit zitieren
- Felix Deubert (Autor:in), 2014, Making a difference digitally. E-Commerce in South Africa, München, GRIN Verlag, https://www.hausarbeiten.de/document/284115
