Compliance made easy: 
E-signature legality in South Africa

Electronic signatures in a nutshell

In the wake of digital transformation, sending electronic documents online has become a common practice. Often, these documents require signatures as a showcase of the agreement. This is achieved with the help of electronic signatures. They provide an efficient way to sign documents online, reducing paperwork and enabling more streamlined transactions.

In addition to easing the process, e-signatures also help protect your documents with their enhanced security and authentication techniques. They outweigh handwritten signatures in various aspects, with security being the most significant. As a result, e-signatures are gaining popularity with businesses worldwide, helping them meet their objectives efficiently.

E-signatures and the boom of South African businesses

With South Africa embracing digital signatures as alternatives to paper-based documents, businesses are guaranteed top-notch safety and productivity. Zoho Sign, a cutting-edge digital signature solution, offers South African businesses impeccable management and authentication of documents while ensuring compliance with the nation's standards revolving around e-signatures.

As opposed to physical signatures, electronic signatures have a great deal to offer, in terms of:

• Speed
• Productivity
• Authentication
• Security
• Remote access
• Improved user experience
• Cost-effectiveness

Industries that are experiencing a surge in e-signature adoption

• HR
• Banking and Finance
• Legal
• Technology
• Non-profit organizations
• Education
• Healthcare and life sciences
• Transport

E-signature in South Africa

South Africa's foray into the digital signing space has enabled the streamlining of business, government, and legal affairs. Recognised under the Electronic Communications and Transactions Act 25 of 2002 (ECTA), e-signatures offer a secure and efficient means of signing documents remotely. Zoho Sign stands as a cornerstone in facilitating legally binding transactions across various domains, driving progress and innovation in the South African region.

Advanced Electronic Signature

An Advanced Electronic Signature is defined in the ECTA as an Electronic Signature that results from a process that has been accredited by the authority as provided for in section 37. AES uses the public/private key encryption process to ensure the integrity and verifiability of evidence.

AES is a digital signature created with a digital certificate from an accredited certification service provider after following a face-to-face identification process or three-factor authentication with the user.

The three-factor authentication is, briefly:

• Something you are (biometrics such as fingerprint and iris scan);
• Something you know (pin, password, or a knowledge-based question);
• Something you have (key, device).

These conditions must be met for an Electronic Signature to be considered an Advanced Electronic Signature:

• The Signature should identify and be uniquely linked to the user, which is achieved through the cryptographic hash function along with the private and public key to encrypt and decrypt the data messages.
• It should be created in a way that accords the signatory with the sole control of the private key.
• It should be linked to the data or data message such that any subsequent change or tampering of the data or data message is identifiable.
• It is based on the face-to-face identification of the user through three-factor authentication or an equivalent signing mechanism to ensure the highest reliability of the Signature.

Circumstances where an Advanced Electronic Signature is required

• Where AES is the agreed-upon type of signature by the parties involved.
• Where the law does not explicitly state the type of signature to be used.
• Where the law requires a signature, statement or document to be notarized, acknowledged, verified, or made under oath.
• For creating a Certified Electronic Copy of a paper document.
• Where the law requires a seal to be attached to an electronic document but does not specify the method to seal the document.

Document timestamping

A digital timestamp is a digitally signed notation that is appended to the electronic data, digital signature, or certificate that indicates that certain digital data exists at a certain point in time. This process securely binds the date and time to the document, ensuring its authenticity and integrity.

Zoho Sign partners with recognised timestamping authorities, GlobalSign and Seiko, to provide trusted digital timestamps for commercial transactions. These timestamps validate the authenticity of e-signatures and verify that the signed document existed in the given form at the time of signing and remains unaltered, adding a robust layer of security to the signing process. By making signatures tamper-proof, digital timestamps enhance the reliability of signed documents for both legal and commercial purposes.

Cases where documents can't be signed electronically under the ECTA

• An agreement for the alienation of immovable property as laid down in the Alienation of Land Act 1981.
• A long-term agreement for immovable property, such as a lease, that is in excess of 20 years as laid down in the Alienation of Land Act 1981.
• The execution of a bill of exchange, such as cheques and promissory notes, as laid down in the Bill of Exchange Act 34 of 1964.
• The execution, retention, and presentation of a will or codicil (Wills Act 1953).

E-signature laws with respect to public sector entities

A public entity may by law accept electronic documents, licenses, permits, and payments through electronic means under Sections 27 and 28 of the ECTA. The public body also has the right to define what type of electronic signature is essential as well as how it should be attached to or integrated into the data message.

Conclusion

Zoho Sign supports South Africa's commitment to adopting digital signatures for secure and reliable transactions. Zoho Sign offers a seamless signing experience and ensures the admissibility of electronically signed documents in a court of law with its array of robust features and compliance with the ECTA. With its simple interface, enhanced security features, and intensive audit trails, Zoho Sign can be the go-to solution to help South African citizens meet the requirements of their present-day transactions.

Resources

• Electronic Communications and Transactions Act (2002)