Digital transformation could significantly shape South Africa’s future, with estimates suggesting it may add nearly 20% to national GDP by 2028, create 300,000 jobs, and improve access to vital services for millions. The latest GSMA South Africa Digital Economy report shows how mobile and digital services are driving economic growth and social progress, creating opportunities and promoting inclusivity nationwide.
In addition, the GSMA’s new Rural Renewal: Telcos and Sustainable Energy in Africa report advocates renewable energy for boosting connectivity in rural areas.
Together, these reports provide a strategic plan for inclusive digital progress, emphasising the critical role of mobile technology in South Africa’s socio-economic development.
Digital as a path to prosperity
The South Africa Digital Economy report demonstrates how digital integration can empower underserved communities by improving access to essential services, enhancing education and job prospects, and supporting entrepreneurship. With the right policies, the digital economy could contribute up to 20% of GDP by 2028, supporting sectors like education and healthcare and creating sustainable jobs.
Angela Wamola, Head of Sub-Saharan Africa at GSMA, commented, “Digital transformation in South Africa holds tremendous potential to enrich lives, enhance economic resilience, and foster greater inclusion. By harnessing the power of mobile and digital services, we can open up meaningful opportunities, particularly for rural communities, empowering them to participate fully in the nation’s digital future.”
Expanding rural connectivity with sustainable Energy
The Rural Renewal report highlights the energy challenges limiting connectivity in rural Africa, where grid access is scarce and operational costs are high. Many off-grid sites rely on costly diesel generators, pushing mobile operators toward renewable energy. By implementing solar-powered mini-grids and innovative models like Energy-as-a-Service (EaaS), operators can cut costs, reduce carbon emissions, and extend digital access to underserved areas.
The report includes case studies from Ethiopia, Nigeria, and the Democratic Republic of Congo, illustrating how renewable energy can drive connectivity and socio-economic growth. Key recommendations include policies incentivising renewable infrastructure, reducing import taxes on green technology, and promoting partnerships between telecom operators, tower companies, and energy providers to create sustainable energy systems.
Key insights and economic impact
The reports reveal several major findings and forecasts:
- Digital Economy growth: South Africa’s digital economy could reach nearly 20% of GDP by 2028, with digital services like fintech, e-health, and digital education expanding access to essential services and strengthening economic resilience.
- Youth employment and digital skills: Growing digital adoption will increase demand for digital skills, creating new employment opportunities for young people and emphasizing the need for digital training programs.
- Fintech and financial inclusion: South Africa’s fintech sector, a regional leader, is projected to generate annual revenue of approximately R8.2 billion by 2024, driving financial inclusion for micro and small enterprises through innovations in digital payments and financial tools.
- Impact on traditional sectors: Adopting digital tools like IoT and cloud services is transforming traditional sectors. Smart farming and Industry 4.0 technologies are boosting productivity in agriculture and manufacturing, enhancing global competitiveness.
- Sustainable energy for rural connectivity: Renewable energy initiatives can reduce energy challenges in rural areas, supporting mobile network expansion, cutting operational costs, and advancing environmental goals.
Policy and partnership for a connected South Africa
To realise these opportunities, the GSMA urges ongoing policy reforms and cross-sector partnerships focused on digital inclusion and sustainable growth. Recommendations include incentives for digital and renewable infrastructure investment, support for digital literacy programs, and frameworks that encourage public-private collaboration.
