Why do we need this keyword data?
SEO professionals and webmasters use the keyword data to analyse visitor patterns and see which keywords perform well and which keywords need a little help. Keyword data is also very important in measuring website conversions/goals. Without knowing what keywords were used to get to your site it is almost impossible to figure out which keywords lead to sales/contact/conversion. Conversions are essential to any SEO marketing strategy.
Why did Google do this?
So What Now?
For now we need to sit tight and see how this plays out, we need to find out if this will affect third party tracking programs. If it does not then my guess is that Google Analytics will be abandoned for more accurate products (Google Analytics has been the most accurate product for years).
How with this affect South African SEO companies and webmasters?
It will all boil down to how many users in South Africa actually sign in to Google before searching, remember, Google is going to limit the keyword data to users that are logged in, so non logged in Google users will still transfer data as normal. If South Africa has a high percentage of non logged in users (which I am sure we do) then we may be able to get enough data to estimate conversion ratio.