The recent shutdown of the Internet in Egypt following political unrest, which started with the clamping down on Facebook and Twitter movement, showed just how vulnerable businesses and people are to government or even terrorist actions. The Internet has become a global tool for communication and business transactions. With such a shutdown, the Egypt government almost completely wiped off Egypt from the global Internet and online business map.

With no means to access Egypt online or even identifying the web addresses, one can almost compare the action to that of the setting up of the Berlin Wall. What goes on behind the boundaries of Egypt is now hidden from the world. It surely is a wake-up call for businesses. One country takes such a drastic step and businesses worldwide are affected.

Egypt has been promoted as an outsourcing destination and is a country that makes millions from tourism every year. According to newspaper reports the direct cost of the five day action is estimated at over 90 million USD while the indirect cost will only become visible over the next two years. Tourists in the country cannot communicate with the outside world by means of social networks. Many rely on the Internet for fund transfers. Financial institutes and IT related providers as well as mobile operators are hit the hardest. Only the stock exchange and some essential web connections kept operating. If the stock exchange would should down, Egypt could be placed back years in time and development. Egypt relies heavily on the online network for its communication with the outside world, and the shutdown at the very least, demonstrated the danger of giving a state too much power over communication and the Internet.

What Would The Effects Be On South Africa?

If something similar should occur in South Africa, we would be even harder hit than for instance, Kenya, where it is estimated according to some sources that a similar blackout could cause damages of more than Sh5 billion daily. Fund transfers in Kenya, according to the sources, would be the hardest hit.

Numerous companies in South Africa already make extensive use of online cloud storage and collaboration. With the idea of cloud storage being to have a safe haven for the storage of data and backups rather than making use of onsite or offsite facilities, the recent events in Egypt highlight the risks involved with cloud based services. All of a sudden many companies not even operating in Egypt cannot operate to maximum potential. It is an intimidating thought for an enterprise. One action from a foreign country could mean total destruction for an offshore company. If in South Africa, this would happen, millions of Rands would be lost daily. Job losses would follow and the ripple effect could mean disaster for the smaller companies doing business with the giants.

It may sound like a doomsday message, but Egypt’s actions have also shown the way for terrorists who want to stage a coup. Should something similar occur in South Africa, not only the IT organisations, but also the banks, insurers, distance learning facilities, tourism and airline industries would be directly affected. With many businesses making use of the Internet as commerce centre, it would mean a complete halt in the economy. South Africans are perhaps not so reliant on mobile communication networks as for instance, Egypt, but with the growing usage of mobile networks for Internet accessibility and communication, South Africa may become even more vulnerable.

Even simple actions such as making a flight booking or making an online payment whether from mobile or landline, will not be possible. It is doubtful whether it would put us back into the dark ages, but the economical impact would be severe.

The younger generations of South Africans make extensive use of mobile communication and devices also for Internet connectivity. It would be wise for companies to start making back-up plans. For one, cloud storage and services, amazing as can be, should not be the only alternative. Offsite and onsite storage may once again be required. Online banking and ecommerce are two areas which would be severely affected, but at this stage it doesn’t seem as if any contingency plans are in place. Even the retail sector would be severely affected as a large number of their customers pay by means of debit and credit cards. With no linkage to the data centres, only cash transactions would be possible.

When the Egypt government clamped down on social networks and instituted the Internet blockade, nearly 90% access was stopped almost immediately. It is like a vehicle hitting a wall at 100 km per hour. It is sudden and causes severe damage. Businesses and IT organisations need to implement contingency plans fast. Airbags help the passengers and the Internet users need something similar relevant to online communication fast. Businesses and individuals in South Africa will have to distribute their risks.

For individuals, one may suggest keeping some cash at hand as bank lines become long when the Internet transfer and payment options are no longer available. Businesses will have to assess their risks and possible outcomes and make backup plans now such as providing their most important users’ access to satellite based Internet connectivity and mobile communication connection. Satellite communication and connectivity seems a bit more difficult to simply shutdown although possible. It, however, could be used as support plan to delay complete disruption in communication, connectivity, and business activities.

The People’s Republic of China government has already instituted more than 60 Internet regulations and has strict censorship systems in place. According to Amnesty International, the country has the most imprisoned cyber dissidents globally. As a preventative measure, democracies may need to rewrite their laws and constitutions to prevent the government from ever having the right to shutdown the Internet and mobile services. Just about any government in the world today has the right to temporarily block the Internet and telecommunications in light of a threat. The question is what is seen as a national security threat?

The five day blockage of online and mobile types of communication by Egypt has caused damages of around 18 USD a day. If calculated on the GDP level, it is a severe financial loss. South African users, the service providers, and backbone companies need to take note of the event and learn from it to reduce the possible risks involved regarding an Internet and mobile shutdown for South African businesses.