The single most powerful way to empower tens of millions of South Africans quickly is to drive down the cost of smart devices and get cheap, reliable broadband into their hands. The ability to participate in e-commerce, remote work, online education and digital financial services creates a world of opportunity currently closed to the poor and unemployed.
It is my mission to change that by opening wide a path to a digital future for every South African, from the most remote rural area to every city in the country.
The digital economy is growing rapidly. It already contributes 19% to South Africa’s GDP and is forecast to add another 4% by 2030.
According to the World Bank, increasing broadband penetration by just 10% results in an average 1.5% increase in GDP in middle-income countries like ours. And yet nearly 50% of South Africa’s population does not have access to affordable broadband, and the high cost of smart devices leaves millions of citizens without any means of connecting to the wider world.
Without smart devices, digital inclusion is an illusion.
A village-based young entrepreneur with a game-changing idea but no way to access global markets remains invisible. An unemployed graduate without access to the internet who cannot apply for opportunities online is stuck in stuck in perpetual unemployment. A student without a mobile device is cut off from the wealth and advantages of digital learning. This is not just a digital divide — it is an economic barrier that perpetuates inequality.
I have adopted a two-pronged approach to driving the change we need.
First, we need to make it easier for businesses, both domestic and international, to offer affordable, fast, reliable broadband to every South African.
Our mobile data is among the most expensive on the continent, with users paying an average of 10.5% of their monthly income for internet access, compared to just 1.2% in developed economies.
That is why one of the key targets for my department in the government’s Medium-Term Development Plan is a decision to allow businesses to contribute to empowerment through equity equivalent programmes (EEPs). To give effect to this decision, I intend to issue a policy directive on the role of EEPs in the ICT sector as a mechanism to accelerate broadband access.
EEPs have been instrumental in attracting much-needed investments in areas such as the automobile sector, so proof of concept is established.
The government needs to be ambitious, and we must match that ambition with the necessary political will to drive change
I sincerely hope the regulator, Icasa, will seize the opportunity to apply a new approach that could unlock game-changing investment in the sector.
EEPs allow multinational corporations to invest directly in initiatives that empower previously disadvantaged people and businesses in the sector, spreading opportunity and driving development. This could include connecting schools, clinics and other government services, skills training for young people seeking a future in the sector, business development opportunities for small enterprises in the wider supply chain, and so on.
The second part of my plan is to bring down the cost of smart devices capable of utilising high-speed internet connections.
To figure out how best to proceed we are working with the World Bank and the GSMA (Global System for Mobile Communications Association) on a study that will result in a series of concrete recommendations. I will discuss these with my colleagues at the National Treasury. The study should be completed during the course of the year.
The government needs to be ambitious, and we must match that ambition with the necessary political will to drive change. This is why we are aiming to substantially increase the population percentage with access to 5G coverage from current levels to 90% over the next five years.
There is absolutely no reason we should not become a country in which every person has this access.
A recent study by the GSMA suggests that 5.6-million new digital jobs could be created if affordable access to broadband and devices were available to all South Africans. If that projection were only half right, it would transform the future of our country.
I want to work with every role player in the sector, including my colleagues in government, leaders in the private sector, international investors and our regulator, and to work fast so that together we can say we have created real opportunity, changed people’s lives and put South Africa on a path to lasting prosperity.
• Malatsi is minister of communications & digital technologies
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