Regulatory Imperatives for the Future of SADC's "Digital Complexity Ecosystem"

Authors

DOI:

https://doi.org/10.23962/10539/23578

Keywords:

complexity science, complex adaptive systems (CAS), digital economy, digital complexity ecosystem, Southern African Development Community (SADC), electronic communications regulation, economic regulation, social regulation, concurrent regulatory jurisdiction, mobile financial services, Internet of Things (IoT), e-health

Abstract

This article uses a "digital complexity ecosystem" framing to delineate the challenges facing regulation of the digital economy in the Southern African Development Community (SADC) region. The digital complexity ecosystem approach, grounded in the field of complexity science - and in particular the study of complex adaptive systems (CASs) - is used to illuminate the sources of uncertainty, unpredictability and discontinuity currently present in the SADC digital sphere. Drawing on examples from three regulatory areas, namely mobile financial services, Internet of Things (IoT) network and services markets, and e-health services, the article argues that SADC regulatory bodies will themselves need to adopt highly adaptive, nonlinear approaches if they are to successfully regulate activities in the digital ecosystem moving forward. Based on the findings, recommendations are made on SADC regional regulatory agendas and, at national levels, matters of concurrent jurisdiction.

References

Abrahams, L. (2015). Framing the digital complexity economy. Keynote paper delivered at CyberAbuja 2015, the IEEE International Conference on Cyberspace Governance: The Imperative for National and Economic Security, Abuja, 4-7 November 2015, https://doi.org/10.1109/CYBER-Abuja.2015.7360506

Abrahams, L.(2016). ICTregulation for fostering the digital complexity economy in the SADC region 2016-2030. Unpublished conference paper delivered at the ACER Conference, Livingstone, Zambia, 10-11 March. Retrieved from https://static1.squarespace.com/static/52246331e4b0a46e5f1b8ce5/t/56f133dff8baf390241b01cc/1458648033943/Luci+Abrahams_ICT+regulation+for+the+digital+complexity+economy+SADC.pdf

African Center for Economic Transformation. (2013). Growing rapidly - transforming slowly: Preview of the 2013 African transformation report. Accra: African Center for Economic Transformation (ACET). Retrieved from http://www.thebrokeronline.eu/content/download/56269/504798/version/1/file/ACET+Africa+Transformation+combined+low-res+0524.pdf.

African Development Bank. (2014). African development report 2014: Regional integration for inclusive growth. Tunis: African Development Bank. Retrieved from http://www.afdb.org

Aguirre, J. L. (2011). Studying social capital in the new communitarian horizon: A multi- method research strategy. In Handbook of research on methods and techniques for studying virtual communities: Paradigms and phenomena (pp. 753-765). Hershey, PA: IGI Global. https://doi.org/10.4018/978-1-60960-040-2.ch044

Airtel Money Malawi. (2017). Airtel Money cross-border transfer. Retrieved from http://www.africa.airtel.com/wps/wcm/connect/AfricaRevamp/malawi/airtel_money/home/airtel-money-cross-border

Airtel Money Tanzania. (2017). Airtel Money tariffs - English (August 2017). Retrieved from http://africa.airtel.com/wps/wcm/connect/AfricaRevamp/Tanzania/Airtel_Money_NEW/Home/Service/Airtel-Money-Tariffs

Akgün, A., Keskin, H., & Byrne, J. (2014). Complex adaptive systems theory and firm product innovativeness. Journal of Engineering and Technology Management, 31, 21-42. https://doi.org/10.1016/j.jengtecman.2013.09.003

Anderson, P. (1999). Perspective: Complexity theory and organization science. Organization Science, 10(3), 216-232. https://doi.org/10.1287/orsc.10.3.216

Baldwin, R., Cave, M., & Lodge, M. (2012). Understanding regulation: Theory, strategy, and practice (2nd ed.). Oxford: Oxford University Press. https://doi.org/10.1093/acprof:osobl/9780199576081.001.0001

Banda, B. (2016). Mobile money: Key competition and regulatory issues in a dynamic sector. Presentation to panel session, 2nd Annual Competition and Economic Regulation (ACER) Week, Southern Africa, Avani Victoria Falls Resort, Livingstone, Zambia, 11-12 March.

Bartoli, A., Hernandez-Serrano, J., Soriano, M., Dohler, M., Kountouris, A., & Barthel, D. (2012). On the ineffectiveness of today's privacy regulations for secure smart city networks. Washington, DC: Smart Cities Council. Retrieved from https://smartcitiescouncil.com

Basaure, A., Marianov, V., & Paredes, R. (2015). Implications of dynamic spectrum management for regulation. Telecommunications Policy, 39, 563-579. https://doi.org/10.1016/j.telpol.2014.07.001

Bello, O., Opadiji, J., Faruk, N., & Adediran, Y. (2016). Opportunities for universal telecommunication access in rural communities: A case study of 15 rural villages in Nigeria's Kwara State. The African Journal of Information and Communication (AJIC), 17, 139-163. https://doi.org/10.23962/10539/21625

Blackman, C., & Srivastava, L. (Eds.) (2011). Telecommunications regulation handbook. Tenth anniversary edition. Washington, DC: World Bank, infoDev, International Finance Corporation, International Telecommunication Union. https://doi.org/10.1596/13277

Blechman, J. (2016). Mobile credit in Kenya and Tanzania: Emerging regulatory challenges in consumer protection, credit reporting and use of customer transactional data. The African Journal of Information and Communication (AJIC), 17, 61-88.

https://doi.org/10.23962/10539/21628

Boylaud, O. & Nicoletti, G. (2001). Regulation, market structure and performance in telecommunications. Organisation for Economic Co-operation and Development (OECD) Economics Department Working Papers, No. 237. Paris: OECD Publishing. https://doi.org/10.1787/601531871521

Bourreau, M. & Dogan, P. (2004). Service-based vs. facility-based competition in local access networks. Information Economics and Policy, 16(2), 287-306. https://doi.org/10.1016/j.infoecopol.2003.05.002

Bourreau, M. & Valletti, T. (2015). Enabling digital financial inclusion through improvements in competition and interoperability: What works and what doesn't? CGD Policy Paper 065, Washington DC: Center for Global Development. Retrieved from http://www.cgdev.org

Brown, I. (2015). Regulation and the Internet of Things. Discussion paper for the Global Symposium for Regulators. Geneva: ITU. Retrieved from https://www.itu.int/en/ITU-D/Conferences/GSR/Documents/GSR2015/Discussion_papers_and_Presentations/GSR_DiscussionPaper_IoT.pdf

Buigues, P. (2006). Competition policy versus sector-specific regulation in network industries: The EU experience. Submitted to UNCTAD's 7th Session of the Intergovernmental Group of Experts on Competition Law and Policy. Geneva: UNCTAD. Retrieved from http://unctad.org/sections/wcmu/docs/c2clp_ige7p14_en.pdf

Cave, M. (2017). 40 years on: An account of innovation in the regulation of UK telecommunications, in 3½ chapters. Telecommunications Policy, 41(10), 904-915. https://doi.org/10.1016/j.telpol.2016.10.006

Civerchia, F., Bocchino, S., Salvadori, C., Rossi, E., Maggiani, L. & Petracca, M. (2017). Industrial Internet of Things monitoring solution for advanced predictive maintenance applications, Journal of Industrial Information Integration, 7, 4-12. https://doi.org/10.1016/j.jii.2017.02.003

Consultative Group to Assist the Poor (CGAP). (2016). Infographic: Tanzania's mobile money revolution. Retrieved from https://www.cgap.org/data/infographic-tanzanias-mobile-money-revolution

Czernich, N., Falck, O., Kretschmer, T., & Woessman, L. (2011). Broadband infrastructure and economic growth. The Economic Journal, 121(552), 505-532. https://doi.org/10.1111/j.1468-0297.2011.02420.x

Di Castri, S. (2014). Enabling mobile money policies in the Democratic Republic of Congo. London: GSMA. Retrieved from http://www.gsma.com/mobilefordevelopment/wp-content/uploads/2014/04/Enabling-Mobile-Money-Policies-in-the-Democratic-Republic-Of-Congo.pdf

Disrupt Africa. (2016). The year in African tech hubs - 2016. Retrieved from http://disrupt-africa.com/2016/12/the-year-in-african-tech-hubs-2016/

ECA, AfDB Group, & AUC.(2017). The Africa competitiveness report 2017: Addressing Africa's demographic dividend. Addis Ababa: Economic Commission for Africa (ECA); Abidjan: African Development Bank Group (AfDB Group), Addis Ababa; African Union Commission (AUC). Retrieved from https://www.afdb.org/fileadmin/uploads/afdb/Documents/Publications/African_Statistical_Yearbook_2017.pdf

Evans, D. & A. Pirchio. (2015). An empirical examination of why mobile money schemes ignite in some developing countries but flounder in most. Coase-Sandor Institute for Law and Economics Working Paper No 723. https://doi.org/10.2139/ssrn.2578312

Fanta, A. B., Mutsonziwa, K., Goosen, R., Emanuel, M., & Kettles, N. (2016). The role of mobile money in financial inclusion in the SADC region: Evidence using Finscope surveys. Policy research paper No. 3/2016. Midrand, South Africa: FinMark Trust. https://doi.org/10.26643/gis.v12i4.3431

FinMark Trust. (2016, March 31). SADC mobile money guidelines. Prepared for the Committee of Central Bank Governors in SADC (CCBG-SADC). Midrand, South Africa: FinMark Trust. Retrieved from http://www.finmark.org.za/wp-content/uploads/2017/04/sadc-mobile-money-guidelines.pdf

Fransman, M. (2007). The new ICT ecosystem: Implications for policy and regulation. Cambridge, UK: Cambridge University Press.

Fredebeul-Krein, M. & Freytag, A. (1999). The case for a more binding WTO agreement on regulatory principles in telecommunications markets. Telecommunications Policy, 23(9) 625-644. https://doi.org/10.1016/S0308-5961(99)00047-6

Galindo-Rueda, F. & Verger, F. (2016). OECD taxonomy of economic activities based on RCD intensity. OECD Science, Technology and Industry Working Papers, 2016/04. Paris: OECD Publishing. https://doi.org/10.1787/5jlv73sqqp8r-en

Gartner. (2016). Gartner's 2016 hype cycle for ICT in Africa shows Internet of Things to have the most beneficial impact on local businesses in two to five years. Press release. Retrieved from http://www.gartner.com/newsroom/id/3406118

Gates, E. (2016). Making sense of the emerging conversation in evaluation about systems thinking and complexity science. Evaluation and Program Planning, 59, 62-73. https://doi.org/10.1016/j.evalprogplan.2016.08.004

Gebreab, F. (2002). Getting connected: Competition and diffusion in African mobile telecommunications markets. Policy research working paper no. 2863, Washington D.C.: World Bank. https://doi.org/10.1596/14261

Gillwald, A. (2005). Good intentions, poor outcomes: Telecommunications reform in South Africa. Telecommunications Policy, 29(7), 469-491. https://doi.org/10.1016/j.telpol.2005.05.005

GSM Association (GSMA). (2015a). The mobile economy: Sub-Saharan Africa 2015. London. Retrieved from https://gsmaintelligence.com/research/?file=721eb3d4b80a36451202d0473b3c4a63&download

GSMA.(2015b).State of the industry report: Mobile money.London.Retrieved from http://www.gsma.com/mobilefordevelopment/wp-content/uploads/2016/04/SOTIR_2015.pdf

GSMA. (2016). 7e mobile economy: Africa 2016. London. Retrieved from http://www.gsma.com/mobileeconomy/africa/

GSMA. (2017). 7e mobile economy: Sub-Saharan Africa 2017. London. Retrieved from https://www.gsma.com/mobileeconomy/sub-saharan-africa-2017/

Hanna, N. (2016). Mastering digital transformation: Towards a smarter society, economy, city and nation. Bingley, UK: Emerald.

Haucap, J. (2003). The economics of mobile telephone regulation. Discussion Paper No. 4, Department of Economics, University of the Federal Armed Forces, Hamburg. https://doi.org/10.2139/ssrn.458241

Hawkes, A. (Ed.) (2017). African.IoT 2017. Johannesburg: Liquid Telecom Group. Retrieved from http://origin.misc.pagesuite.com/pdfdownload/80c0d4eb-24d0-4bbb-ab23-d066e9f5ee4e.pdf

Hernandez, J., Leza, D., & Ballot-Lena, K. (2010). ICT regulation in the digital economy. Discussion Paper for the Global Symposium for Regulators. Geneva: ITU. Retrieved from https://www.itu.int/ITU-D/treg/Events/Seminars/GSR/GSR10/documents/GSR10-ppt2.pdf

Hinde, C., & Van Belle, J-P. (2012). Cloud computing in South African SMMEs: Risks and rewards for playing at altitude. International Research Journal of Computer Science Engineering and Applications, 1(1), 32-41. Retrieved from http://www.academia.edu/3036522/Cloud_Computing_in_South_African_SMMEs_Risks_and_Rewards_for_Playing_at_Altitude

Hutchings, A., Smith, R., & James, L. (2013). Cloud computing for small business: Criminal and security threats and prevention measures. Trends & Issues in Crime and Criminal Justice No. 456. Canberra: Australian Institute of Criminology. https://doi.org/10.52922/ti242319

Kelly, T., Mulas, V., Raja, S., Qiang, C., & Williams, M. (2009). What role should governments play in broadband development? Paper prepared for infoDev/OECD workshop on Policy Coherence in ICT for Development, Paris, 10-11 September. Retrieved from http://www.oecd.org/ict/4d/43631862.pdf

Internet World Stats. (2017). Internet user statistics for Africa: Africa Internet usage, 2017 population stats and Facebook subscribers. Retrieved from http://www.internetworldstats.com/stats1.htm

International Telecommunication Union (ITU). (2013a). Electronic communications and electronic transactions: South African Development Community (SADC) model law. Geneva. Retrieved from https://www.itu.int/en/ITU-D/Projects/ITU-EC-ACP/HIPSSA/Documents/FINAL%20DOCUMENTS/FINAL%20DOCS%20ENGLISH/sadc_model_law_e-transactions.pdf

ITU. (2013b). Data protection: South African Development Community (SADC) model law. Geneva. Retrieved from http://www.itu.int/en/ITU-D/Projects/ITU-EC-ACP/HIPSSA/Documents/FINAL%20DOCUMENTS/FINAL%20DOCS%20ENGLISH/sadc_model_law_data_protection.pdf

ITU. (2013c). Computer crime and cybercrime: South African Development Community (SADC) model law. Geneva. Retrieved from https://www.itu.int/en/ITU-D/Cybersecurity/Documents/SADC%20Model%20Law%20Cybercrime.pdf

ITU. (2017a). Measuring the information society report 2017, Volume 1. Geneva. Retrieved from https://www.itu.int/en/ITU-D/Statistics/Documents/publications/misr2017/MISR2017_Volume1.pdf

ITU. (2017b). HIPSSA project: Support for the harmonization of the ICT policies in Sub-Saharan Africa. Geneva. Retrieved from http://www.itu.int/en/ITU-D/Projects/ITU-EC-ACP/HIPSSA/Pages/default.aspx

Internet World Stats. (2017, June 30). Internet user statistics for Africa: Africa Internet usage, 2017 population stats and Facebook subscribers. Retrieved from http://www.internetworldstats.com/stats1.htm

Jackson, T. (2017, October 30). SA insurtech startup Naked raises $1.4m. Disrupt Africa. Retrieved from http://disrupt-africa.com/2017

Krämer, J., & Schnurr, D. (2014). A unified framework for open access regulation of telecommunications infrastructure: Review of the economic literature and policy guidelines. Telecommunications Policy, 38, 1160-1179. https://doi.org/10.1016/j.telpol.2014.06.006

Krämer, J., & Wohlfarth, M. (2017). Market power, regulatory convergence, and the role of data in digital markets. Telecommunications Policy (2017). https://doi.org/10.1016/j.telpol.2017.10.004

Lachaud, E. (2017). The General Data Protection Regulation and the rise of certification as a regulatory instrument. Computer Law and Security Review: The International Journal of Technology Law and Practice (2017). https://doi.org/10.1016/j.clsr.2017.09.002

Lawson, P. (2014). Telecommunications regulation: Creating order and opportunity in UK digital terrestrial television Whitespace. Computer Law and Security Review, 30, 375-391. https://doi.org/10.1016/j.clsr.2014.05.004

Maaref, S. (2012). Cloud computing in Africa: Situation and perspectives. Geneva: International Telecommunication Union (ITU). Retrieved from http://www.itu.int/ITU-D/treg/publications/Cloud_Computing_Afrique-e.pdf

Matinmikko, M., Latva-aho, M., Ahokangas, P., & Seppänen, V. (2017). On regulations for 5G: Micro licensing for locally operated networks. Telecommunications Policy. https://doi.org/10.1016/j.telpol.2017.09.004

Mazer, R., & Rowan, P. (2016). Competition in mobile financial services: Lessons from Kenya and Tanzania. The African Journal of Information and Communication (AJIC), 17, 39-59. https://doi.org/10.23962/10539/21629

Moraes do Nascimento, N., & Pereira de Lucena, C. (2017). FIoT: An agent-based framework for self-adaptive and self-organizing applications based on the Internet of Things. Information Sciences, 378, 161-176. https://doi.org/10.1016/j.ins.2016.10.031

Nanevie, F. (2012). The effects of government regulations on the mobile communication telephony in Ghana. MBA thesis, Institute of Distance Learning, Kwame Nkrumah University

of Science and Technology, Kumasi, Ghana. Retrieved from http://ir.knust.edu.gh/bitstream/123456789/4331/1/Frederick%20A.%20Nanevie.pdf

Ndubuaku, M., & Okereafor, D. (2015). State of Internet of Things deployment in Africa and its future: The Nigerian scenario. The African Journal of Information and Communication, 15, 114-119. https://doi.org/10.23962/10539/20335

Ngobese, M., & Kühn, A. (2017). Regional competition enforcement: Co-operation between SADC competition authorities in the investigation of cross-border cartels. Retrieved from http://www.compcom.co.za/wp-content/uploads/2017/09/Cooperation-between-agencies-in-the-SADC-region-draft-1.pdf

Namibia University of Science and Technology (NUST). (n.d.) Smart citizen - FABlab Namibia. [YouTube video]. Retrieved from http://fablab.nust.na/?q=all-projects-list#cbp=/?q=project/smart-citizen

Noll, R. (1999). Telecommunications reform in developing countries. Working Paper 99-10. AEI-Brookings Joint Center for Regulatory Studies. Retrieved from http://papers.ssrn.com/abstract=181030

https://doi.org/10.2139/ssrn.181030

Peter, A. (2017). Cyber resilience preparedness of Africa's top-12 emerging economies. International Journal of Critical Infrastructure Protection, 17, 49-59. https://doi.org/10.1016/j.ijcip.2017.03.002

Pieters, G., & Vivanco, S. (2017). Financial regulations and price inconsistencies across Bitcoin markets. Information Economics and Policy, 39, 1-14. https://doi.org/10.1016/j.infoecopol.2017.02.002

Robb, G. , & Vilakazi, T. (2016). Mobile payments markets in Kenya, Tanzania and Zimbabwe: A comparative study of competitive dynamics and outcomes. The African Journal of Information and Communication (AJIC), 17, 9-37. https://doi.org/10.23962/10539/21630

Roberts, S. (2016). Mobile money: Key competition and regulatory issues in a dynamic sector. Presentation to panel session, 2nd Annual Competition and Economic Regulation (ACER) Week, Southern Africa. Avani Victoria Falls Resort, Livingstone, Zambia, 11-12 March.

Southern African Development Community (SADC). (1999). Protocol on health in the Southern African Development Community. Retrieved from http://www.sadc.int/files/7413/5292/8365/Protocol_on_Health1999.pdf

SADC BA. (n.d.). SADC BA: Who we are. Web page. Retrieved from http://www.sadcbanking.org/about.aspx

Schneider, M., & Somers, M. (2006). Organizations as complex adaptive systems: Implications of complexity theory for leadership research. The Leadership Quarterly, 17, 351-365. https://doi.org/10.1016/j.leaqua.2006.04.006

Sullivan, C. (2016). Digital citizenship and the right to digital identity under international law. Computer Law and Security Review, 32, 474-481.

https://doi.org/10.1016/j.clsr.2016.02.001

Tanzania Communications Regulatory Authority (TCRA). (2017). Quarterly communications statistics report: April-June 2017 quarter. Dar es Salaam. Retrieved from https://www.tcra.go.tz/images/documents/telecommunication/TelCom-Statistics-June-2017.pdf

Vogelsang, I. (2017). The role of competition and regulation in stimulating innovation - Telecommunications. Telecommunications Policy (in press). https://doi.org/10.1016/j.telpol.2016.11.009

World Bank. (2017). World development report 2016: Digital dividends. Washington, DC. https://doi.org/10.1596/978-1-4648-0671-1

World Economic Forum (WEF). (2017). The Africa competitiveness report 2017. Geneva. Retrieved from https://www.afdb.org/fileadmin/uploads/afdb/Documents/Publications/Africa_Competitiveness_Report_2017.pdf

Downloads

Published

23-12-2017

Issue

Section

Research Articles

How to Cite

Abrahams, L. (2017) “Regulatory Imperatives for the Future of SADC’s ‘Digital Complexity Ecosystem’”, The African Journal of Information and Communication (AJIC) [Preprint], (20). doi:10.23962/10539/23578.
Views
  • Abstract 305
  • pdf 116