• Digital platforms in South Africa can inject around R91 billion into the economy by 2035.
• Just on digital platforms, South Africa’s GDP can grow to around 1.38 percent.
• However more needs to be done to achieve this growth, including new regulations and expanding digital infrastructure and skills locally.

A brand new report from Naspers with Mapungubwe Institute Research reveals that by 2035, the growth of digital platforms in South Africa can add R91.4 billion to the economy and expand the country’s GDP from around 0 percent that it is currently to around 1.38 percent alone.

But this huge boost to the economy is not promised and collective action is necessary to address growth hurdles and enable an environment that is conducive for these digital platforms.

The study, which Naspers calls the “first of its kind to comprehensively model the economic impact of South Africa’s digital platform economy” found that the digital transformation of South African businesses is lagging, while demand for digital skills locally is skyrocketing.

This means that collective action is needed to spur South Africa’s digital transformation in order to create a business environment where existing digital platforms can grow and new digital platforms can launch more easily.

With the right environment, digital platforms – that is any online platform where money transactions take place – can inject over R90 billion into the South African economy in 2035.

The report’s findings call for the fast-tracking of high speed internet and the expansion of available digital infrastructure, the improvements of energy reliability, the introduction of new and better regulations that not only track but also support local digital platforms, enhancing the participation of small businesses and more.

“South Africa stands on the brink of a digital revolution,” says Naspers CEO Phuthi Mahanyele-Dabengwa.

“Though still in its early stages, the shift to digital mirrors global trends and offers a rare chance to unlock significant economic potential for our nation. As one of the country’s largest investors, Naspers is committed to leading this transformation by driving innovation and inclusive growth in this vital sector.”

Naspers is one of South Africa’s largest, if not the largest digital technology investors, owning platforms like Takealot, AutoTrader, PayU, Mr D and others. The company also has stake in Chinese technology megacorporation Tencent.

Its CEO says to achieve the potential economic impact of digital technologies seen in the report, more needs to happen in the realm of public and private collaboration.

“For this potential to be realised, collaboration is key. Public and private sectors must join forces to bridge the digital divide by expanding digital access, accelerating digital skills to underserved communities and ensuring regulations fuel innovation and create a level playing field. By doing so, we will ensure that no individual or community is left behind,” Mahanyele-Dabengwa adds.

“If we get this right, it will be a game changer for inclusive growth and propelling South Africa into a prosperous digital future.”

You can read the full report embedded below:

[Image – Photo by NordWood Themes on Unsplash]