TechZim recently reported that Shingai Mutasa, founder of the Zimbabwean investment firm Masawara was appointed to head a US$200 million Africa startup fund. In light of such a mammoth appointment, do we as budding and established entrepreneurs have what it takes to sustain business online? According to DatarReportal on the digital statistics of Zimbabwe 33.4% of the population are active internet users and 98.5% of the population use mobile devices. Most businesses in Zimbabwe have steadily adopted an online approach to marketing their products. According to the science and tech site oakpost, ten of the most tech advanced countries in Africa are, South Africa, Egypt, Nigeria, Kenya, Ghana, Rwanda. Botswana, Angola, Uganda and Zimbabwe (whew we made it!!!). Still Zimbabwe faces many hurdles in terms of online platforms, one major hurdle being limited infrastructure and high data costs.
Legal Implications of Online Business
There are a number of legal implications that arise with having an online business. First and foremost an online business still has to be a registered entity with the registrar of companies within the business owner's domicile. After all a business is still a business whether virtually or not.
As previously stated, cyber security is of paramount importance, business owners need to protect their data not only from malicious attacks from hackers but also safeguard their business data within the institution. A business owner must safeguard against their employees disseminating information concerning the business such as trade secrets. Legal documents such as a data protection policy and a non-disclosure agreement are effective ways in which an online business owner can safeguard against distribution of information. A business owner should ensure that they have labour contracts that govern the relationship between the owner and their employees. Labour contracts can further include terms that can protect the business owner's interests, such as restraint of trade clauses. Restraint of trade clauses prevent an employee from using the trade knowledge gained from the business owner to their own advantage, that is, it prevents the employee from setting up a similar trade or working with a competitor business for a number of years.
Legal contracts with service providers such as content writers, website designers, and contracts between the business owner and the consumer, such as terms of sale concerning the business owner's online products are also necessary to regulate the business efficiently.
A business owner should take note of liability that may arise in the use of its products. According to business.com in 2018 Amazon was liable for a dog collar it sold to a third-party vendor that caused permanent vision loss to a woman who bought the collar. Liability can be cured via a terms of use or indemnity policy.
A privacy policy concerning information gathered or distributed by the business owner is another legal document that must be in place to protect illegal use or distribution of content, this covers issues such as online payments, a consumer must be guaranteed that their payment information will be safeguarded by the business. According to business.com an online business owner can make use of software such as APM, which is software that identifies and fixes vulnerabilities of a business's online system.
An online business owner should also consider copyright and trademark laws for logos and other paraphernalia associated with the business.
Legislation that a business owner can go through pertaining to the above include but are not limited to, Companies Act [Chapter 24:03], Labour Act [Chapter 28:01], Consumer Protection Act [Chapter 14:44], Trade Marks Act [Chapter 26:04], Copyright and Neighboring Rights Act [Chapter 26:05]. A business owner may engage the services of a legal practitioner to assist in ensuring the legality of their online business.
Global and Regional Business Trends
Thinking of an online business? As a matter of interest, globally the businesses accumulating the most profits are companies majoring in technology, energy, retail, and pharmaceuticals but to name a few, with tech companies having the steadiest growth projections. In Africa, businesses majoring in energy, mining and agriculture remain the continents strong point in terms of profit generation. In Zimbabwe the main business sectors are predominantly agriculture, mining, industrial goods and services, information and communication technology, food and beverages, specialty chemicals, pharmaceuticals, arts and crafts.
Jn conclusion should you take the online route when it comes to your business? well the following statement should nudge you in the right direction...
"When it comes to technology, the last thing you want to do is be resistant to change, because that is when you get left behind". (Unknown author)
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
