Patel under pressure to open e-commerce
Trade & industry minister Ebrahim Patel is under pressure to explain to parliament the rationale behind restricting e-commerce at a time when many countries are embracing online platforms as part of measures to restrict movement of people to curb the spread of the coronavirus.
Trade & industry minister Ebrahim Patel is under pressure to explain to parliament the rationale behind restricting ecommerce at a time when many countries are embracing online platforms as they try to restrict movement of people to curb the spread of the coronavirus.
Last week, Patel, who has clashed with various groups opposed to some of the lockdown regulations, said the government could not allow unfettered e-commerce as this would be unfair on other traders such as spaza shops.
Under the level 4 lockdown regulations, Patel said e-commerce will be expanded incrementally. He has allowed the sale of essential food items, winter clothing, bedding, hot foods, stationery and cellphones.
However, logistics and ecommerce businesses are pushing for the government to fully open up home deliveries, saying such a move would actually aid the fight against the pandemic.
Retailers have said lifting restrictions on products that can be sold online would encourage customers to stay at home while saving retail workers’ jobs.
Takealot CEO Kim Reid said in April that online shopping was in line with the health objective to keep people at home.
On Monday, DA MP Dean Macpherson said he had written to portfolio committee chair for trade & industry Duma Nkosi to invite Patel to justify the e-commerce restrictions.
“To date, no logical rationale has been provided to South Africans and businesses by the minister,” Macpherson said.
Instead, the MPs were told by the minister during a parliamentary committee meeting on Friday of “directions” permitting the incremental expansion of e-commerce.
He said the incremental expansion had to take into account the need to limit the extent of movement on the road, contact between people, law enforcement challenges and the effect on other businesses.
Macpherson said it was critical that Patel takes SA into his confidence and details what these “directions” were and when they would be issued.
“The continued rejection of unfettered e-commerce is simply unsustainable and without reason … It is time that we start walking the talk when it comes to the fourth industrial revolution and embrace e-commerce.
“Parliament has made much of this new revolution and now is a perfect opportunity to use its oversight powers to compel the minister to justify his views and demand a way forward.”