The ZA Registry Consortium’s (ZARC’s) .CO.ZA top-level domain registration statistics reveal a notable trend over the past decade. While registrations have continued to increase, the rate of growth has considerably slowed since 2021. Between 2015 and 2020, the net addition of .CO.ZA domains showed a consistent growth rate. However, this growth rate saw a significant decline from 2021 to 2024, with the average annual net additions dropping substantially.
During the period analyzed, the data indicated that in 2023, the number of .CO.ZA domain deletions exceeded creations, resulting in a negative net movement for that year. This shift marked a departure from the positive net movements observed in the preceding years, indicating a changing landscape for .CO.ZA domains.
Comparing the net movements in domain registrations and deletions, it is evident that the peak observed in earlier years, such as 2015 to 2020, was not sustained in the subsequent years. The data highlights fluctuations in the growth patterns of .CO.ZA domains, with varying levels of net movements recorded annually.
Industry experts, such as Absolute Hosting managing director Jade Benson, attribute the slowed growth of .CO.ZA domains to the challenging economic conditions prevailing in South Africa. Benson emphasizes the need for the .ZA Domain Name Authority (ZADNA) to concentrate on enhancing awareness and education among resellers to stimulate growth and entrepreneurship within the domain namespace.
Moreover, in June 2024, ZADNA announced price hikes for several domain extensions, including CO.ZA, ORG.ZA, NET.ZA, and WEB.ZA, for the upcoming financial years. These adjustments were based on a financial analysis considering inflation and exchange rate impacts on operational expenses. The decision followed consultations with industry stakeholders and aimed to align with economic trends and operational requirements.
Registrars were informed of a wholesale price increase in the rate of Billable Transactions for the specified domain extensions, effective from October 1, 2024. The price adjustments were linked to the Consumer Price Index (CPI), leading to changes in registration and renewal fees per domain name. ZADNA outlined the scheduled price adjustments for the subsequent financial years, providing clarity on the annual increments based on the prevailing CPI.
As these adjustments are at the wholesale level, individual registrars are tasked with determining how to handle the price changes, whether by absorbing them or passing them on to customers. Stakeholders are advised to synchronize their processes with ZADNA’s timelines to ensure a seamless transition and communication of the adjustments to end-users.
The evolution of .CO.ZA domain registrations and pricing dynamics underscores the dynamic nature of the domain industry, influenced by economic factors, regulatory decisions, and market trends. The data reflects a nuanced narrative of growth patterns, pricing strategies, and the interplay of various stakeholders shaping the domain landscape in South Africa.
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