There is probably not a single South African adult living in a city or town whose life has not been fundamentally changed by access to data, the Internet and digital tools. If not using it themselves, friends and family certainly are.
It is an anomaly, then, that one of the constant refrains of this year’s Africa Tech Festival, which incorporates the long-running AfricaCom conference, was the idea that the South African and African economies would be boosted by access to broadband, and by digital transformation. It’s a little like having a major conference themed on the idea that more rain would be good for agriculture.
Yet, from keynotes to panels to side conferences, this was the constant refrain of the event, organised by UK-based Informa.
According to the latest GSMA South Africa Digital Economy report , released at Africa Tech festival Com this week, “digital transformation is expected to play a pivotal role in South Africa’s future”. Beyond stating the obvious, however, it does provide a solid perspective of what this means. Its projections indicate this process could “contribute nearly 20% to national GDP by 2028, create 300,000 jobs, and expand access to essential services for millions”.
More usefully, the GSMA also launched a report titled Rural Renewal: Telcos and Sustainable Energy in Africa, which shows how renewable energy solutions can expand connectivity in rural Africa.
“Together, these reports offer a strategic roadmap for inclusive digital progress, underscoring mobile technology’s critical role in advancing South Africa’s socio-economic landscape,” said the GSMA.
“The Rural Renewal report focuses on the significant energy challenges limiting digital connectivity in rural Africa, where grid access is sparse and operational costs are high. With off-grid sites often relying on costly and polluting diesel generators, mobile operators urgently need to transition to renewable energy sources. By deploying sustainable solutions like solar-powered mini-grids and exploring innovative models such as Energy-as-a-Service (EaaS), operators can reduce costs, lower carbon emissions, and extend digital access to underserved communities.”
The report includes examples from Ethiopia, Nigeria, and the Democratic Republic of Congo of how renewable energy initiatives can drive connectivity and support broader socio-economic development.
It contains several key recommendations, such as adopting government policies that incentivise renewable infrastructure, reducing import taxes on green technology, and fostering partnerships between telecom operators, tower companies, and energy providers.
Key Findings and Economic Impact
GSMA provided the following insights and projections:
- Digital Economy Growth: South Africa’s digital economy is projected to reach nearly 20% of GDP by 2028, with advancements in digital services like fintech, e-health, and digital education transforming access to essential services and economic resilience.
- Youth Employment and Digital Skills: As digital adoption accelerates, the demand for digital skills will increase significantly. Youth employment opportunities in tech-driven sectors are expected to rise, emphasising the need for comprehensive digital skills programs to bridge workforce gaps.
- Fintech Leadership and Financial Inclusion: South Africa’s fintech sector, a regional powerhouse, is forecasted to generate annual revenue of approximately ZAR 8.2 billion by 2024. With innovations in digital payments and financial tools, fintech enhances financial inclusion, particularly for micro and small enterprises.
- Impact on Traditional Sectors: Adopting digital tools, especially IoT and cloud services, transforms traditional sectors. For instance, smart farming solutions and Industry 4.0 technologies are boosting productivity in agriculture and manufacturing, positioning these industries to become more competitive globally.
- Sustainable Energy for Rural Connectivity: The Rural Renewal report’s findings show that renewable energy deployment can mitigate energy challenges in rural regions, support mobile network expansion, and lower operational costs while advancing environmental goals.
* Arthur Goldstuck is CEO of World Wide Worx and editor-in-chief of Gadget.co.za. Follow him on social media on @art2gee.