2. Quality and speed of distribution logistics (i.e., roads and bridges)

Roads and bridges, especially in developing countries, still form part of the e-commerce

infrastructure. Very few goods are delivered over the information infrastructure

or the Internet (the exceptions are music and software). Most of the goods

purchased over the Internet are still delivered the conventional way (i.e., physical

delivery). Hence, poor roads and bridges, inefficient transport systems, coupled

with the high cost of international parcel services and bureaucratic customs clearance

processes, are major obstacles in the uptake of e-commerce in developing

countries. Government should therefore create a policy environment that will:

● encourage investments in the national physical and transport infrastructure; and

● provide for electronic customs clearance processing to streamline the bureaucracy

and allow for more transparent, predictable and efficient customs operations.

Both of these will contribute to the reduction of distribution and logistics costs.

How can government intervene in the promotion and development of e-commerce

among SMEs?

The following are the more relevant areas for government intervention with respect

to SME uptake of e-commerce: