The Barriers to Adoption of a Cashless Economy in the South African Agri Market: A Consumer`s Perspective

Abstract

The agricultural sector can play a crucial role in driving South Africa’s economy. However, this sector only contributes less than 3% to the country’s GDP. A part of this low performance can be attributed to challenges faced by small-scale. The wholesale market generally dictates unfavourable prices for farmers’ produce, and long-term payback periods that negatively affects farmers’ ability to sustain their operations. In recent years, the integration of digital technology such as electronic commerce (ecommerce) in agriculture globally has emerged as a promising solution to improving agricultural yields and impact to a country’s economy. In the case of South Africa, ecommerce can be the solution to alleviate challenges faced by small scale farmers to improve their ability to sustain farming operations. This research explores which ecommerce features an Agri-Based ecommerce platform should have to encourage and facilitate direct transactions between farmers and consumers, with a focus on the sale of fresh produce. The study employs a quantitative approach through an online survey requesting participants to rate the level of importance ecommerce features have on their intention to purchase fresh produce online. The Theory of Affordance served as the conceptual framework. The research findings reveal that the visual and descriptive presentation of produce, website aesthetics and ease of navigation, availability of multiple payment methods, customers support information and channels, store reviews and rating scores, and same day delivery features are crucial for an Agriculture Ecommerce platform to drive fresh produce sales online for farmers. The introduction of a uniform online Agri marketplace, or individual fresh produce online stores, can improve the ability for fresh produce farmers to improve their operations profitability and sustainability, and therefore overall food security for South Africa.