The digital platform economy could inject more than R90bn into SA’s economy by 2035, according to a new report by Naspers, the JSE’s largest group.
On Tuesday, Naspers and the Mapungubwe Institute for Strategic Reflection (Mistra) launched a research report that explores “the untapped potential of SA’s digital platform economy — a sector that includes online platforms that facilitate economic transactions”.
The research shows that the digital platform economy could be a game-changer for the country, with projections showing it could inject R91.4bn into the economy by 2035. This growth would see the sector’s contribution expand from 0.02% of GDP in 2022 to 1.38% by 2035.
Among a host of findings, the researchers found that between 2010 and 2022, the world’s top 20 companies shifted from being resource-driven (36% to 7%) to being dominated by digital platforms (16% to 56%).
In addition, science, technology, engineering and mathematics (STEM) graduates in SA account for just 18% of the total, compared to more than 30% in innovation led countries such as India, the UAE and South Korea.
“SA stands on the brink of a digital revolution,” said Naspers SA 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,” she said.
The group also found that it could take up to 180 working days to process certain regulatory approvals, which hampered timely access to digital infrastructure and services.
SMEs contributed 30%-40% of GDP, but in townships and rural areas they were mostly informal and lacked focus on competitive products or digital services, read the report.
Mistra executive director Joel Netshitenzhe said: “There are vast opportunities before us and it is clear that a thriving digital platform economy could bring enormous value to SA. While the foundational elements are in place, significant barriers remain that hinder society from realising this potential.”
“The encouraging central message of the report is that solutions are within reach, but they require urgent collaboration and bold actions from all stakeholders,” he said.
To make the most of potential held in the digital platform economy, the team has made a number of recommendations, such as prioritising digital platform infrastructure in national development plans, as well as improving energy and logistics reliability for digital services.
To speed up regulation, it recommends the introduction of regulatory sandboxes to encourage innovation, supporting hyperlocal platforms to foster digital inclusion and including the digital platform sector in national economic tracking systems for better regulation.
“This report comes at a pivotal moment for SA. There is a renewed sense of energy and commitment across various players in SA to get our country on the path of inclusive economic growth and shared prosperity,” Mahanyele-Dabengwa said.
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