South Africa is leading Africa’s technological transformation, according to The Digital Opportunity of SA, a report launched this week by Google and Public First.
The study estimates that, for every R1 invested in digital technology in SA, over R10 in economic value is expected to be generated by 2030. As a result, Google has declared the next ten years as the continent’s “digital decade”, driven by developments in AI, cloud computing and digital infrastructure.
“It’s part of our mission to ensure that Google’s products and services are helping to fast track the country’s digital evolution, thereby increasing the number of people with access to technology tools,” said Paul Mayanja, Google SA interim country director, during a media briefing in Johannesburg this week.
“By prioritising affordable access for all local users, Google has empowered millions to connect to the internet for the first time and equipped thousands of businesses and creators.”
In 2023 alone, Google’s products and services contributed an estimated R118-billion to the region’s economy, empowering businesses, non-profits, and content creators.
Mayanja told Gadget: “That R118-billion number is a big one. It’s one that we’re very proud of, and it goes to demonstrate that our initiatives are having an impact on the digital ecosystem.”
In addition to infrastructure investments, Google has also been driving AI adoption across sectors. According to the report, AI has the potential to boost the economy by R172-billion by 2030. However, AI adoption remains in its early stages for many businesses.
“Everybody’s talking about AI, but it’s really about what is it helping to solve?” said Mayanja. “Practically for a business, what is it trying to do? AI helps in many areas to solve those problems in a very efficient manner.
“So, it might sound strange, coming from me, to say that it’s not about the technology, it’s really about what are you trying to solve? And then you say from there: which technology, and what tools can you use?
“And yes, AI is one of those tools that help with efficiency, but it also helps to drive profitability for companies.”
Mayanja says AI adoption varies depending on the size and specific needs of businesses.
“For smaller companies, AI adoption might be very different from a big business that’s looking to drive greater efficiencies.”
Understanding this difference, Google has designed AI tools to meet businesses where they are, offering tailored solutions that address operational needs.
Beyond AI, Google’s digital tools – such as Search, YouTube, and Google Cloud – play a crucial role in SA’s digital economy. Businesses across industries, from tech startups to nonprofits, have used these tools to scale their operations and connect with new customers.
Google SA interim country director Paul Mayanja, joined by broadcaster Zinatha Gquma, StandardBank’s Lesego Ngcamu, head of government affairs and public policy Abongile Mashele, and NEF acting CEO Mziwabantu Dayimani at Google’s media briefing in Johannesburg this week. Photo: JASON BANNIER.
The report highlights the role of YouTube in empowering a generation of digital entrepreneurs. It reveals that nine in ten YouTube creators in SA agree that the platform has given them a way to monetise their content while sharing their creativity and culture with others.
Long-term commitment
Google’s long-term commitment to SA’s digital transformation is seen through its infrastructure projects, such as the Equiano subsea cable and the upcoming Umoja line. These investments are designed to enhance connectivity across the continent. The report estimates that by 2025, SA’s internet speeds will triple, and internet costs will drop by over 16%, thanks to the Equiano cable. These improvements are expected to increase internet penetration by more than 7%.
Google’s influence extends to job creation and supporting entrepreneurs. The company estimates that its first cloud region in Africa, located in Johannesburg, is expected to contribute R39-billion to SA’s GDP and create more than 40,000 jobs by 2030.
Google’s initiatives, such as the Black Founders Fund and Hustle Academy, have supported over 4,000 small businesses in the country. These programmes provide funding, mentorship, and digital skills training to help local entrepreneurs thrive in the digital economy.
Mayanja told Gadget: “There’s a lot more to do, and we will be playing our part. We’re really grateful for the partnerships that we have and the engagements that we have with government, but ‘it will take a village’ as we say on the continent – various players have a role to play in this.”
* Read ‘The Digital Opportunity of South Africa’ here.
* Jason Bannier is a data analyst at World Wide Worx and writer for Gadget.co.za. Follow him on Twitter and Threads at @jas2bann.